Group: 33 CC B

Robert Anemaet (990349)Eric Heusdens (982624)Laurens Kok (992409)

Mirjam Kroese (992337)Karien Pasveer (992418)

Stefanie Provoost (990487)

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Table of contents

Page

Introduction 4

Chapter 1: External analyses 5§1.1. Branch of business analysis (market analysis and environment analysis) 5

§1.1.1 Macrobiotic environmental factors 5§1.1.2 Population 6§1.1.3 Age structure of the population 6§1.1.4 Socio cultural factors 7§1.1.5 Ecological factors 7§1.1.6 Politico-juridical factors 7§1.1.7 Aggregated market factors 7§1.1.8 Branch of business factors 8

§1.2 Consumer analysis 8§1.3 Distribution analysis 8§1.4 Competition analysis 10

Chapter 2 Internal analyses 11§1 Market position analyses 11§2 McKinseys model 12§3 Statement of purpose 13

Chapter 3 Communication DE coffee 14§3.1 Communication objectives 14§3.2 Market position 14§3.3 Communication strategy 14

§3.3.1 Target group: 14§3.3.2Different communication streams: 14§3.3.3Target group / matrix of means 14

§3.4 Communication briefing 15§3.5 Communication concept 16

Chapter 4 Summary 17

Chapter 5 Conclusion 18

Appendices 19Company profile of Douwe Egberts Nederland 20Canada 22

References 27

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Introduction

This marketing report will take you to the other side of the world, all the way to Canada. Many products are in the past century imported and exported from and into Europe. The market of the richer countries of the world is almost complete satisfied. Whatever you need, you can buy it. Because of this, it is not easy to export a product into a foreign market.

Douwe Egberts Nederland is a coffee producer with very much success at the Dutch market. The company now wants to conqueror the Canadian market with its coffee. There are serious chances for the company to sell their products in Canada but also some threads, which can make the entrance difficult. This report will make you better acquainted with the company and the brand. Also this report will try to answer the main question ‘How can D.E. Coffee conquerors Canada?’

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Chapter 1 External analysis

§1.1 Branch of business analysis (market analysis and environment analysis)

It is important to gain an insight in the Canadian coffee market. The first thing to do is to analyse how attractive the market is. All possible factors are being held up to the light. These factors are subdivided in:

Macrobiotic environmental factors;Aggregated market factors;Branch of business factors.

§1.1.1 Macrobiotic environmental factors

Demographic factors and constitution of the population:

Canada’s population is now over 31 million. About 40% of Canadians are of British stock. French descendants of the original pioneers long made up about 30% of the population but this has dropped to about 25% and continues to fall. By far the majority of people of French descent live in Quebec but there are large numbers in New Brunswick, Ontario and Manitoba. The English-speaking population has grown mainly by immigration from Britain and the USA. Over 3.5 million Canadians are of Scottish or Irish ancestry. The official Canadian languages are English and French.Canada’s third-largest ethnic group is German. Other major groups are Italian, Ukrainian, Dutch, Greek, Polish and Scandinavian.There are about 250,000 Dutch immigrants living in Canada, mainly in Ontario and Quebec. Quebec is a French province: about 80% of the inhabitants speak the French language. This province, therefore, has a great longing for independence.Montreal is sometimes called ‘the Paris of North America’, and is the second largest French-speaking city in the world. Only Paris itself is larger. That is why almost everyone in the city speaks French.More recently Asian, particularly Chinese from Hong Kong, and to a lesser degree Latin Americans and Blacks from the Caribbean have been immigrating in larger numbers. The original inhabitants comprise 1,5% of the total population. They consist of Métis, Indians and Inuit.

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§1.1.2 Population

The table below shows the population of Canada in the past five years.

1997 1998 1999 2000 2001thousands

Canada 29,987.2 30,248.2 30,499.2 30,769.7 31,081.9Newfoundland 554.1 545.3 540.7 537.2 533.8Prince Edward Island

136.9 136.9 137.6 138.1 138.5

Nova Scotia 934.5 936.1 939.7 941.2 942.7New Brunswick 754.2 753.3 754.4 755.3 757.1Quebec 7,302.6 7,323.6 7,349.7 7,377.7 7,410.5Ontario 11,249.5 11,387.3 11,522.7 11,685.3 11,874.4Manitoba 1,136.6 1,137.9 1,142.4 1,146.0 1,150.0Saskatchewan 1,022.0 1,024.9 1,025.5 1,022.0 1,015.8Alberta 2,837.2 2,906.8 2,959.5 3,009.2 3,064.2British Columbia 3,959.7 3,997.1 4,028.1 4,058.8 4,095.9Yukon 32.2 31.5 31.0 30.6 29.9Northwest Territories

41.8 41.0 41.0 40.9 40.9

Nunavut 25.9 26.4 26.9 27.4 28.2x data unavailable, not applicable or confidential.1. On July 1 of each year.

Source: Statistics Canada, CANSIM II, table 051-0001.

Ontario is Canada’s main province. More than 11,874,400 people live in this province. Large cities like Ottawa and Toronto can be found here. Most people live in Toronto: 3.89 million. Next major cities are Montreal (3.13 million), Vancouver (1.60 million) and Ottawa/Hull (0.92 million).

§1.1.3 Age structure of the population

The population, percentage in age groups:

Years people (millions), rounded off percentage of change0-14 6,000,000 -0.715-24 4,500,000 0.925-44 10,000,000 -0.445-64 7,000,000 3.365+ 4,000,000 1.6

Over the last 25 years, the average family size declined from 3.7 persons in 1971, to 3.1 persons in 1996. Decreases were attributed to declining fertility rates and increasing numbers of lone parent families.

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§1.1.4 Socio cultural factors

In Canada people get married at a later age than before. Since the Second World War, the women have taken important places in the labour process because the men were away from home. This can be of importance for the sale of coffee, the women for instance can have an important say in the decision what to buy.

Drinking coffee has a lesser social function than it has in Holland. This can be of importance for an advertising campaign that has to be held. It may be necessary that these will be held in a different way than, for instance, the Dutch market. In Canada, people drink coffee not as regular on fixed times as in Holland. This partly explains why the coffee shops in Canada do such good business most of the day.

§1.1.5 Ecological factors

The most populated areas in Canada have long, cold winters and short and hot summers. The average temperature in the whole country in January is minus 18 degrees Celsius. From November until April the largest part of Canada is covered by snow. Putting a new coffee product is best to do after summer, when it is colder. The fact that in Canada it is often very cold is of benefit for coffee producers.

§1.1.6 Politico-juridical factors

In 1988 the governments of the United States and Canada agreed to enter into a free trade agreement, which went into effect January 1, 1989. The goal of the agreement was to eliminate all tariffs on bilateral trade between Canada and the United States by 1998. This was followed in 1991 by talks among the United States, Canada, and Mexico aimed at establishing a North American Free Trade Agreement (NAFTA), The talks concluded in August 1992 with an agreement in principle. The agreement became law January 1, 1994. NAFTA, with more than 362 million consumers, is larger than the European Union. This development has been of great importance for the Canadian economy, because trade with the United States comprises three quarters of the total trade in Canada. This is the largest trade route between two countries.In fact, the Canadian market is dominated by the United States and many American businesses have established in Canada to avoid American taxation.

§1.1.7 Aggregated market factors

About the total market, it can be said that people are not going to drink much more coffee, so you will have to take away products from the competition. Canada has a rather extensive market, which is attractive. Another advantage is that the population is concentrated in certain areas and in large cities, which brings the market in good reach.

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§1.1.8 Branch of business factors

It may be a problem that there is no easy access to distribution channels. It also takes a lot of communication strain to get people to buy the product. Growth will have to take place at the expense of the competitors.

§1.2 Consumer analysis

The segments (these are the groups of clients that Sara Lee/DE want to reach) in Canada are large enough to be profitable. About the attainability it can be said that through distribution and advertising it will not be difficult to reach the segment.

The taste of people in Canada is generally different from the taste of people in Holland. There are only few people who drink coffee so strong as the Dutch. The Americans, in general, have an even lighter roast, which can also be found in Canada, like Folgers.

The coffee market will not perceive anything of the lesser economy of this moment. The attacks in New York will not influence coffee consumption, it might sooner increase it. This can be called the “feeling good syndrome”. People want to feel good, even with the declining economy. That is why coffee consumption will probably not suffer by it.

§1.3 Distribution analysis:

The coffee market has been slowly changing over the last few years. This can be seen by the number of speciality coffee shops that are being built all of the time. A few names are Starbucks, Tim Hortons, Coffee Time and Grabba Jabba (places like these are only in cities with a lot of people). There are today over 6,000 outlets across the country. Most are franchise businesses, serving and selling private-label lines supplied by their parent company. Besides beverages, a lot of these shops sell food items like doughnuts, bagels, pies, cakes, scones, and sandwiches. The owners try to have items that will encourage people to sit down to drink their coffee and have a snack at the same time. Some of these coffee shops are very up-market, offering exotic blends and trendy presentation of coffees and teas, as well as a variety of other hot drinks. The 'Coffee Shop Culture' is therefore a growth area.

It can be important that most people in North America have never been to Europe, and have many ideas and an impression that Europe is very chic. A possible way of bringing a new coffee product on the market is to play on people's image of Europe. This can be an advantage, because most Canadians dislike the American influence and may dislike their products.

A few big chains can be found in Canada. The two major chains are Sobey’s for the east and Safeway for the west. Other big chains are Atlantic Wholesalers and Loblaws.Before any money on advertising is spent, DE has to get listings at these big chains, this, of course, costs a lot of money, but without listings it is not possible to sell in their stores. A listing is some type of contract with, for example, Sobey's. In order to be able to put a product on the shelf, they have to de-list something else. It is a whole

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process to list a product. Each product is assigned an SKU number (the U stands for unit). This information has to filter through the whole system of Sobey's. Info has to go out to the stores that certain products are coming. The store managers have no say in this, they are also not allowed to try and sell anything on their own, every inch of shelf space and floor space is accounted for.

Nowadays, fewer players can be found in the grocery retail market than, for instance, 30 years ago, and it is crucial that new products are offered through these big chains.

To get a DE product on the shelf, it might happen that the chain will cut down on the amount of facings of a particular type. Three facings is three of the same next to each other.

If coupons are being used at the advertising campaign, these should be coupons that offer money-off at the cash register, for example, $ 1.00 off. In Canada it is the norm that stores take the coupons, and are paid some money to do this, by the company selling the new product. Coupons might come in the mail, or they are placed near the product on display. This marketing tool works very well.

When all of this is accomplished, a decision has to be taken on a date to start the advertising campaign. The best time to start the advertising campaign is at the end of the summer, because people drink more coffee when the weather is cooler. A number of ways can be found to get the public to the coffee products of Douwe Egberts. Sample packages can be made up with enough coffee to make two cups of coffee, and can be delivered door-to-door through the mail. A floor display unit has to be designed for the retail, it has to be made sure that it stares the consumer in the face. Our samples can also be combined with coupons that offer money-off on the purchase of our products.

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§1.4 Competition analysis:

The table below shows the most important competitors of Sara Lee/DE in the Canadian coffee market.

General Foods

Maxwell House Melita Folgers Coffee Private brands

Nabob

In this table can be seen that General Foods, a big American company, has two products on the market: Maxwell House en Nabob. The dominating brand is Maxwell House. Melita is another coffee product in a few different flavours, there is also a variety of private brands, none of them more than mediocre in quality. Some of the names of the private brands are "Our Compliments" from Sobey's and "No Name” and “President's Choice” from Atlantic Wholesalers. Atlantic Wholesalers is a part of Loblaws. Loblaws operates stores under this name in, among others, Ontario.

Sara Lee/DE will compete with brands that are focussed on the same market segment, namely normal coffee. Their competitors are direct competitors, because they deliver the same products on the same markets.

It is possible to find really good coffee in the super markets in Canada. This coffee consists of coffee beans sold from silos and it has a number of varieties, for example, Java, Colombia, French Roast, Espresso and Guatemala. This coffee is quite more expensive than regular coffee but is also more complicated to make and it takes longer to make it. In this respect, DE can have an advantage in the competition by putting coffee on the market which is as good and at a lower price.

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Chapter 2 Internal analysis

§2.1 Market position analyses

The current market position in the Netherlands is very positive. Douwe Egberts is market leader of the coffee market in the Netherlands. They became market leader by buying there closest competitors. The also own some other companies who produce warm drinks like the and hot chocolate. By giving a lot of attention on innovation there are aiming to keep the market leadership in the future.

With the positive prospects on the domestic market we now concentrate on launching this successful concept on the Canadian market.In order to give you a clear view on our expectations of export campaign, we have shaped the business scope of DE coffee in Canada in the model by Abell.

The coffee market in Canada is led by two big companies, Folgers and Maxwell. These coffee products are not comparable with our DE coffee products in terms of taste, image and identity. The taste for instance is a lot stronger compared with our competitors. These advantages have to be pointed out in our campaign.

Further more we formulated come more advantages of the coffee market in Canada.We found out that the population of Canada has a great ethnic diversity, most resident family’s are originally from Europe and in Quebec, one of the largest states, the people speak a lot of French. Our task is to anticipate on the traditional European feelings of the immigrant families.

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Consumer functions

Consumer technology

Consumer groups

In a coffee house

Consumers at work

Consumers at home

To collect savings-stamps

To warm up

Sociability

To perk up

Self made

Coffee machine

In a coffee house

Savings-stamps

§2.2 McKinsey”s model

Advice bureau of Mister McKinsey developed a model to analyse the management instruments within an organisation. The model is structured by the seven S-parts: Structure, Systems, Style of managing, Staff, key Skills, Strategies and Significant skills.We are going to apply these seven instruments the organisation of Douwe Egberts.

StructureThe commercial activities of Douwe Egberts are divided into two business units: Retail and Coffee systems. Retail is responsible for the delivery of the retail trade. They concentrate on the consumer market. The coffee systems unit supplies machinery an ingredients for the business to business market. The master organisation and over all instructions come from a higher business unit. called Operations.

SystemsThe business unit Operations is like a central command post of the company. They co-ordinate and communicate to the two different business units. The also use an intranetworking for the informal contacts within the organisation.

Style of managingAs a modern and successful company, Douwe Egberts has a balanced personnel policy. There is a lot of attention from the top of the organisation for managing all the personnel in a correct way. Employees are stimulated to constantly develop in their function and in a possibly career.

StaffWithin the management of Douwe Egberts they are attending on two aspects of the Human Resource Theory. A large amount of attention goes to rewarding the motivated co-workers and stimulating their employees to develop the careers

Key SkillsAccommodating to chancing consumer wishes, innovation and quality are the key skills of the Douwe Egberts Company. Today these skills are mostly applied on the business market. They have great success with placing coffee machines in offices. A great example of skills by the marketing and innovation divisions.

StrategiesCoffee takes an important place in every household an work place.The aim of Douwe Egberts is to enrich and enlarge the coffee moments. By offering products like the Senseo Crema machine, a little cheap plastic coffee machine, the aim to expand the coffee ales.

Significant skillsWith significant skills is Mister McKinsey aiming at the vision of the company.Douwe Egberts formulates this as followed:“Enjoy Douwe Egberts coffee, wherever you are and whatever you do”.

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§2.3 Statement of purpose

The product we chosen to expand to Canada is the consumer coffee. This product is proven to be very successful in the European coffee market over the last years. We expect that the supermarket visitors will recognize Douwe Egberts coffee as a typical European product. We believe that people in the whole North American continent look up to Europe as a chic and modern place to live. So if we could link these values to Douwe Egberts coffee it would be great.

These conclusions led us to the following marketing problem definition:“In what way are we going to link European values to our product?”our biggest concern is that worry about a correct way of communicating with consumers. Not only the campaign has to be European orientated but also the packing of the product and everything that Douwe Egberts communicates.

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Chapter 3Communication DE coffee

§3.1 Communication objectives- Within half a year at least 70% of our target group know there is a new coffee

brand (DE) from Europe for sale on the Canadian market.- Within one year at least 20% of the Canadians have to taste DE coffee at least

once. After two years at least 20 % of the Canadians drink DE coffee regularly.- Within one year at least 60% of all supermarkets in Canada will adopt DE coffee

in their assortment.

§3.2 Market positionDE coffee is a European coffee brand, because of that, DE distinguish themselves from the other Canadian coffee brands. Most people in North America have never been to Europe, and have many ideas and impressions that Europe is very chic, this is also an important point for the advertising campaign. DE coffee also has a different taste compared with the other coffee brands in Canada. DE coffee is a bit stronger.

§3.3 Communication strategy

§3.3.1 Target group:- All coffee drinkers in Canada, these are men as well as women at the age of 18

till 90 years old.- Also people who do not drink coffee are a part of the target group; maybe they do

like DE coffee.- All supermarkets in Canada.

§3.3.2 Different communication streams:1. Communication aimed on general announcement of DE coffee and making the

consumer enthusiastic.2. Communication aimed to persuade the consumer to drink DE coffee.3. Communication aimed to persuade the supermarkets to adopt DE coffee in their

assortment.

§3.3.3 Target group / matrix of means

means consumer SupermarketAdvertisements in magazines

X

Advertisements in newspapers

X

Billboards XInformation leaflets

X

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§3.4 Communication briefing

Making enthusiastic

Means:Advertisements and billboards.

Communication aimed at general announcement of DE coffee and at making the consumer enthusiastic.

Planning:First half year.

Contents: Introducing the brand and its qualities, making the consumer curious.

Figures of speech:Chic, creating curiosity, a lot of images, short and clear texts.

Use

Means:Advertisements and billboards

Communication aimed on persuading the consumer to drink DE coffee

Planning:After half a year, advertisements, billboards and promotion displays will be placed (in supermarkets).

Contents:Persuasion of the consumer to drink DE coffee.

Figures of speech:Chic, sensational taste, a lot of images, extensive information (especially in the advertisements and displays).

Supermarket

Means:Information leaflets.

Planning:Informing supermarkets about DE coffee in one year.

Contents:Informing supermarkets about DE coffee and persuade them to adopt DE coffee in their assortment.

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Figures of speech:Chic, informative, images, a lot of text

§3.5 Communication concept

Douwe Egberts intents to position their coffee in Canada as a chic European coffee brand . DE coffee also wants to put the domestic aspect forward.

The following theme has been chosen:

‘Taste the European experience, at home’ (this theme has been chosen for a longer period of time).

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Summary

When we first thought about exporting coffee to the Canadian market we saw great opportunities. After the first analyses the high expectations turned out to be a little to high. Although there where still enough opportunities for expanding in Canada.We are still looking for the right type of campaign and marketing structure for Douwe Egberts, but we are close to the solution of our problem definition. The analyses, external and internal, where performed on a high level. They give a clear view of the possibilities for coffee in Canada, and the internal situation of Douwe Egberts. Together with our healthy mind it must be possible to construct a great marketing communication plan.

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Conclusions

Now that we have ended the phase of analysing our possibilities we now know what problems we are going face constructing the right strategies to led Douwe Egberts Coffee to a success.In the analyses we saw a few remarkable facts about the Canadian habits and traditions. Some were positive others negative, the led us to a realistic starting point for our campaign.The inhabitants of Canada have a great ethnic diversity; we think a great advantage for our product. Another point which is less positive is the fact that the coffee market is a bit full. There are a few brands that are property of big food company’s have a big share of the market.Although we think we have a good chance for success. We think that the quality of our coffee is on a much higher level than the market leaders in Canada. If we succeed in communicating the great quality and are able to link the right values to our coffee we stand a good chance against the present coffee brands.

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Appendices

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Company profile of Douwe Egberts Nederland

Douwe Egberts Nederland develops and produces branded goods and puts them on the Dutch market. Douwe Egberts is market leader in its most important product categories, like for instance, coffee, tea and rice. The most considerable brands are Douwe Egberts , Pickwick and Lassie. Almost 1700 people work at Douwe Egberts Nederland. Douwe Egberts Nederland is a subsidiary company of Sara Lee/DE, an international group of companies. The participating companies develop eminent brand products and put them on the market as well. Headquarters of Douwe Egberts Nederland are situated in Utrecht.

The OrganizationDouwe Egberts Nederland is a strong marketing driven organization. The central marketing department is responsible for the relation with the consumer, brand control, concept and product developing, the developing and editing of new markets, assortment policy, national promotion activities, market research and for the successful gift system.

The commercial activities of Douwe Egberts Nederland are divided into two business units. The business unit retail concentrates on the delivery of consumer goods to the retail trade. Advising and active brainstorming with the client over the total category, on the base of consumer research, and presenting integral solutions have become of great importance in this business unit.

The business unit Douwe Egberts Coffee Systems is a provider of coffee- and tea systems for the business-to-business market. It supplies in machinery, ingredients up to and including accessories and after sales service. Douwe Egberts Coffee Systems provides the best solution in the business-to-business market in every ‘coffee situation’. All this under the device “Everywhere at home”. The activities are grouped around the market segments that have Douwe Egberts Coffee Systems as their supplier. Characteristic for this market is that it is requiring much labour. There are about 700 people working at this unit, from a sales manager to a service mechanic.

The output and distribution facilities are placed into the business unit operations. This concerns a coffee roaster (Utrecht), a tea packer (Joure), a rice factory (Wormer) and Detrex Nederland the distribution organization. The business unit operations also maintains about 700 co-workers.

The departments Personal & Organization and Finance & Administration support the three business units and the central marketing department.

The BrandsNext to the three major brands of which Douwe Egberts is leader in the market, Douwe Egberts has as a replenishment Natrena and Licht & Romig. Other important goods are Kanis & Gunnink, Van Nelle Koffie, IJsthee and Piazzo d’Oro.

The MissionEnjoy coffee and tea, wherever you are and whatever you do, is one of the main points Douwe Egberts Nederland stands for. For coffee and tea take an important

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place in everyday’s life. The most important aim of Douwe Egberts Nederland is to enrich and peculiarize the coffee and tea moments, and to create and define new consumption moments.

They attempt to do this by building and keeping strong goods, and pursue market-leadership. Accommodating to changing consumer wishes, innovation and quality are the keywords. A condition to realize this in the long term is not just to keep good relationships with business partners and suppliers but with the consumers and our own employees as well. This all together with a constant attention for costs controlling and efficiency, must take care of the guarantee of high sales and constant profit.

The assortmentDouwe Egberts aims at an assortment for its most important product groups, which provide the needs in the market at the best. Regularly the offer is adapted, packaging is changed and new products or coffee systems are improved.Market research and product developing constantly takes place, this all to guarantee the high quality of the products and services.

The employeesWorking from the vision that good and motivated co-workers have a key role in the success of a company, Douwe Egberts has a balanced personnel policy. Employees are stimulated to constantly develop in their function and in a possible career. This way they can have an optimal contribution to the results of the organization.

The History of Douwe Egberts

Douwe Egberts history starts in Joure. In 1753 Egbert Douwes opened a store in groceries. He sold products that belonged to the joy of every day’s life. In 1780 he handed his store “De Witte Os” over to his son Douwe Egberts. Since then this has been the name of the company.

Selling coffee, tea and tabacco the company gained more and more respect, first only in the region but later on in all of the Netherlands. In 1919 they founded a point of support in Utrecht. Ten years later the sales department and the coffee roaster where also situated in Utrecht and they opened a new establishment.Early 1948 a start was made in internationalization. First came Belgium but soon after France, Spain and Denmark followed. As a consequence of this the activities where divided into independent companies joined in the holding Douwe Egberts Koninklijke. In 1978 Douwe Eberts went into co-operation with the American Sara Lee corporation. This led to the foundation of Sara Lee/DE.

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Canada

The origin of the name "Canada" is Huron-Iroquois.

"Kanata" was the Huron-Iroquois word for "village" or "settlement". Desiring another name, Jacques Cartier used "Canada" to refer to the site of present day Quebec City. The name was later applied to a much larger area and at the time of Confederation, the new country assumed the name of Canada.

Canada's HistoryAboriginal peoples are thought to have arrived from Asia thousands of years ago by way of a land bridge between Siberia and Alaska. Some of them settled in Canada, while others chose to continue to the south. When the European explorers arrived, Canada was populated by a diverse range of Aboriginal peoples who, depending on the environment, lived nomadic or settled lifestyles, were hunters, fishermen or farmers.First contacts between the native peoples and Europeans probably occurred about 1 000 years ago when Icelandic Norsemen settled for a brief time on the island of Newfoundland. However, it would be another 600 years before European exploration began in earnest.

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State of the Economy The Canadian economy is strong. Since 1994, Canada's economic performance has been characterized by growth, low inflation, stable unit labour costs, improved cost competitiveness, record exports, and a healthy level of business investment. Among the G-7 countries — the most developed economies in the world — Canada ranks highly in per capita purchasing power. The country's level of exports has never been higher. This is due to improvements in cost competitiveness and strong productivity growth. As well, Canada continues to maintain one of the lowest inflation rates in the world.

Ethnic and Racial Diversity in CanadaMulticulturalism is a fundamental characteristic of Canadian society. The society has always been pluralist and diverse and is bound to become even more so. Already approximately two-fifths of the Canadian population have one origin other than British, French or Aboriginal.

The Federal Government's Multiculturalism ProgramIn 1997, the Department of Canadian Heritage restructured the federal Multicultural Program. The renewed program works towards three main goals:

identity - fostering a society in which people of all backgrounds feel a sense of belonging and attachment to Canada;

civic participation - developing citizens who are actively involved in shaping the future of their various communities and their country;

social justice - building a nation that ensures fair and equitable treatment and that respects and accommodates people of all origins.

Multiculturalism and Business.Canada's diversity is increasingly recognized as an asset in both the domestic and the international markets, and as a major contributor to Canadian economic prosperity.The Conference Board of Canada has worked with other business, industry and trade associations to identify new ways for Canadian organizations to use Canada's linguistic and cultural diversity to their advantage at home and abroad. Also, the Business Development Bank of Canada consults regularly with ethno cultural business associations in major centres.Canada's multicultural nature will become even more of an asset in the emerging global economy. Canadian companies already recognize the benefits and are drawing on the cultural diversity of our work force to obtain the language and cultural skills needed to compete successfully in international markets.

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Population1

1997 1998 1999 2000 2001thousands

Canada 29,987.2 30,248.2 30,499.2 30,769.7 31,081.9Newfoundland 554.1 545.3 540.7 537.2 533.8Prince Edward Island

136.9 136.9 137.6 138.1 138.5

Nova Scotia 934.5 936.1 939.7 941.2 942.7New Brunswick 754.2 753.3 754.4 755.3 757.1Quebec 7,302.6 7,323.6 7,349.7 7,377.7 7,410.5Ontario 11,249.5 11,387.3 11,522.7 11,685.3 11,874.4Manitoba 1,136.6 1,137.9 1,142.4 1,146.0 1,150.0Saskatchewan 1,022.0 1,024.9 1,025.5 1,022.0 1,015.8Alberta 2,837.2 2,906.8 2,959.5 3,009.2 3,064.2British Columbia 3,959.7 3,997.1 4,028.1 4,058.8 4,095.9Yukon 32.2 31.5 31.0 30.6 29.9Northwest Territories

41.8 41.0 41.0 40.9 40.9

Nunavut 25.9 26.4 26.9 27.4 28.2x data unavailable, not applicable or confidential.

1. On July 1 of each year.

Source: Statistics Canada, CANSIM II, table 051-0001.Last modified: November 27, 2001.

While food prices fell for the third consecutive month, they continued to have a significant impact on the All-items CPI in October, accounting for almost 40% of the 12-month increase. Higher prices for restaurant meals, beef and fresh fruit continued to play a dominant role.

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The Consumer Price Index and major components(1992=100)

October 2001

September 2001

October 2000

September to October 2001

October 2000 to October

2001Unadjusted

% changeAll-items 116.8 117.4 114.6 -0.5 1.9

Food 116.8 116.9 112.0 -0.1 4.3Shelter 113.6 113.4 110.6 0.2 2.7Household operations and furnishings

113.0 113.2 110.7 -0.2 2.1

Clothing and footwear 107.2 107.9 107.5 -0.6 -0.3Transportation 130.3 133.0 131.5 -2.0 -0.9Health and personal care 115.0 114.2 112.8 0.7 2.0Recreation, education and reading

124.5 126.0 124.4 -1.2 0.1

Alcoholic beverages and tobacco products

106.8 106.5 98.1 0.3 8.9

All-items (1986=100) 149.6

Purchasing power of the consumer dollar expressed in cents, compared to 1992

85.6 85.2 87.3

Special aggregates

Goods 113.8 114.8 112.1 -0.9 1.5Services 120.3 120.4 117.5 -0.1 2.4

All-items excluding food and energy

115.1 115.2 112.9 -0.1 1.9

Energy 131.0 137.0 134.6 -4.4 -2.7

All-items excluding the eight most volatile components(1)

118.2 118.2 115.7 0 2.2

1

Excluded from the All-items CPI are these eight volatile components, as defined by the Bank of Canada: fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuel; gasoline; inter-city transportation; and tobacco products and smokers' supplies. The Bank of Canada further adjusts this series to obtain their measure of core inflation, which also excludes the effect of changes in indirect taxes. For data and information on core inflation, please consult the Bank of Canada Web site: (www.bankofcanada.ca/inflation).

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The Consumer Price Index by province, Whitehorse and Yellowknife(1992=100)

October 2001September

2001October

2000September to October 2001

October 2000 to October

2001Unadjusted

% changeNewfoundland

114.3 115.0 114.2 -0.6 0.1

Prince Edward Island

115.4 114.7 113.3 0.6 1.9

Nova Scotia 116.4 117.2 115.4 -0.7 0.9New Brunswick

114.8 115.4 113.9 -0.5 0.8

Quebec 113.2 113.7 111.5 -0.4 1.5Ontario 118.2 118.5 115.2 -0.3 2.6Manitoba 121.5 122.4 118.8 -0.7 2.3Saskatchewan

121.2 122.1 117.5 -0.7 3.1

Alberta 121.0 122.4 119.2 -1.1 1.5British Columbia

115.8 116.7 114.5 -0.8 1.1

Whitehorse 117.5 118.5 115.1 -0.8 2.1Yellowknife 113.5 114.3 111.5 -0.7 1.8

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References

Books

Canada, Kosmos Reisgids, Frits Njio, third edition, 1998

Gids voor Canada, dr. A.J. Van Zuilen, Gottmer, 1998

Grondslagen van de marketing, Verhage, 1998

Insight Guides Canada, APA, 1986, translated by Frank Rozendaal 1995

International Marketing Research, V. Kumar, Prentice Hall, 2000

Organisatie & management, Van Dam, 1999

Marketing communicatie strategie, Floor/ Van Raaij, 1998

Marketing Research, An Applied Approach, Thomas C. Kinnear, McGraw-Hill, 1996

Marketing Research, a practical approach for the new millennium, Joseph F. Hair, JR, Irwin McGraw-Hill, 2000

Moderne Industriële wereld, CANADA, Marshall & Richardson, 1996

Lonely planet, Canada, Mark Lightbody, 1997

Strategische marketing planning, Alsem, 1997

Internet

http://www.shoppingplace.com/_vti_bin/shtml.exe/expertsrch.htm

http://www.statcan.ca/english/Pgdb/Economy/intern.htm

http://www.atlas.gc.ca/english/quick_maps/index_quickmaps.htm

http://www.tradepartners.gov.uk/canada/profile/index/introduction.shtml

exportinfo.canada@tradepartners.gov.uk

Folgers Coffee:

http://www.cw-usa.com/folgers.html

www.de.nl

www.canada.com

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