Engelbert Strauss’s Marketing Plan for Canada

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Engelbert Strauss’s Canada Marketing Plan
1.0 Introduction
Engelbert Strauss (ES henceforth) is a German-based organization specializing in workwear. According to the organizations, workwear refers to any form of clothing and accessories focused on ensuring the comfort and safety of individuals within different work environments. In the current business strategy, ES relies on various products in safety and workwear enhanced by high product quality, large selection, customized embroidery or print, and fast delivery. The organization seeks to expand and venture into the Canadian market as part of its growth and expansion plans. With the increasing rate of globalization, the scale of foreign investments increases. However, the success of foreign entities in a local market requires a clear understanding of the local market and the subsequent forces that shape it. For an organization like ES, while specific forces may influence the market dynamics faced in Germany, such forces may or may not be critical factors in the Canadian market. Therefore, the current paper develops a Canadian country notebook that will guide the development of an initial marketing plan for ES as it expands into the Canadian market. This will be addressed by investigating three core areas of the Canadian business environment: cultural, economic, and market audit & competitive market analysis.
2.0 Cultural Analysis
Cultural diversity is a crucial descriptor of the world when looking at human societies. In trying to establish the total number of cultures worldwide, researchers and scholars are yet to agree on the total number of global human cultures. For instance, while Ethnologue records suggest over 6900 extant languages, the Price's Atlas pf Ethnographic societies suggest 3814 distinct cultures (Foley and Lahr pr 8). Such estimates are challenging based on the fact that even within cultures, there can be numerous subcultures. On average, one must travel 78 km from a given central zone to encounter language barriers. Due to this diversity in global cultures, there is an attempt with the business domain to generalize diverse cultures within a country into a national culture (Kaasa and Minkov 8). In other words, the culture that shapes the business environment in Germany is not necessarily the same as those which shapes business in Canada. Determining and understanding these differences makes it easy for foreign entities to successfully venture into foreign markets and remain competitive against local and foreign companies in the same business line.
2.1 Canada’s Relevant History
A national culture is a generalized kind of culture with individual and unique characteristics developed and created during historical development (Gamlath 922). In essence, a national culture refers to the beliefs, behavior, customs, values, and norms shared by the population of a specific country. The national culture has a significant influence on success and sustainability. It influences the purchase & and consumption of material goods or services. It shapes approach leadership styles, managerial decision-making, how communication is carried out within and without the organization, and practices in human resource management. National culture may consist of numerous subcultures in which some are ignored for the nation's benefit (at least theoretically). Understanding a national culture requires a look at the historical development of a country.
The name Canada is derived from the Iroquoian word Kanata which implies village. Canada can be described as a nation of nations throughout its history since it began following the domination by two European powers: Great Britain and France. Therefore, the British and French cultures remain a dominant part of the Canadian national culture. In 1940, the renowned Canadian Novelist described the Canadian culture as consisting of two solitudes that underpin the Canadian political and cultural landscape. Today, however, the American culture has also influenced Canadian culture through film and radio. Most importantly, however, Canada was a land of diverse and distinct indigenous communities even before its arrival. While their specific cultures have been shielded from the limelight due to the imposing influence of European cultures, Canada is a country with numerous cultures.
Canada is a leading nation in terms of diversity and inclusivity. It is also a significant advocate for climate change mitigations, same-sex marriages, and liberal ideologies. The culture has also followed the capitalistic route, with market freedom and controlled government interference. Due to the influence of European powers, Canada experiences a growth and development rate almost similar to that of the United States. The rise of the industrial revolution led to changes in the consumption of industrial products.
2.2 Geographic Settings
As of 2020, Canada had a population of 38.01 million people. With a geographical size of 9.98 million square kilometers, Canada is the second-largest nation and has the lowest population density of 4 persons per square kilometer (O'Neill). Women are a slight majority, making up 50.37% of the Canadian population. In terms of age, people between the ages of 25 and 44 are the largest cohort totaling over 10.3 million, followed by 10.1 million people aged between 45 and 64 years. As of 2020, the average age in Canada was about 40.9 years (Jeudy). In terms of race, most Canadians are Whites of European origin, with a paltry 5% making up for indigenous communities.
According to the location theory, international trade activities are inseparable from a geographical environment (Boso, Debrah, and Amankwah-Amoah 209). More specifically, the location can influence the level of trade and economy. Canada is located in the northern portion of North America. Its eastern and western boundaries have hugged the Atlantic and Pacific Oceans, respectively providing expansive routes for global trade. As a result, the country has over 550 port facilities, out of which the Canadian port authorities control 17. The eastern portion of the country, consisting of Nova Scotia, Newfoundland, and Labrador, is a riverine and maritime environment. The central region is primarily covered by the boreal forest (Quebec and Ontario), while the Western region is dominated by grassland regions which culminate into the Rocky Mountains with a narrow riverine environment. The variations have social and cultural importance and shape the dominant types of economic activities. In other words, the type of workwear sold in Quebec or Ontario may not be the same as that sold in Nova Scotia. This is because these are two different regions with different economic activities. While one region is focused on logging, another is focused on the marine economy, providing a basis for the diversification of products.
2.3 Climate
Canada has a massive latitudinal extent which translates into a comprehensive variety of climates. The climate is influenced by the warm waters of the Gulf Stream in the Atlantic and the Pacific's Alaska currents. The northern two-thirds of the country experience a general climate akin to Scandinavia: freezing winters with short and cool summers. In the central region, the climate is continental, with hot summers, sparse precipitation, and cold winters. In the southern regions of Quebec and Ontario, the areas experience hot, humid summers and snowy cold winters. These annual changes in climatic (or weather conditions) make the Canadian market ideal for ES's various products. In essence, an individual may own different work and safety wear products for each weather condition experienced around the year.
2.4 Social Institutions
Social institutions are patterns or mechanisms of social order focused on meeting the common good of society. Examination of social institutions encompasses the family, political, and legal system, among others, and their influence on the business environment concerning the product(s) and organization in question.
2.4.1 The Family
In Canada, the family has historically been documented as a nuclear family; a couple and their immediate children. Extended families have always been known to live separately. However, recent societal changes show that a nuclear family is no longer a social expectation. An increase in divorces, single-family livelihood, same-sex marriage (with children), and cases of children leaving the family to live alone at an earlier age compared to previous generations have all challenged the classical definition of the family unit. Further, there has been an increase in a household with single individuals who are increasingly getting married later than previous generations. However, Canada does not experience significant gender disparities in educational and work opportunities. Like in Germany, gender does not necessarily dictate an individual's role. This means that ES's market in Canada consists of all genders, where each gender is more likely to need similar work and safety wear products. Single households are also a prime market. Most people who live alone are in their earlier stages of career development or towards the tail end of their educational development.
2.4.2 Political System
Due to the influence of Britain on Canada, first as a colonial power and as a global strategic partner. Thus, Canada’s political system is shaped by the UK system consisting of a Queen as the head of state and a prime minister as the head of government. The Canadian government consists of the Queen (represented by Governor-General), the s...