The Essence of Made in Canada - Case Study Example

The essence of “Made in Canada” Introduction Many consumers prefer to buy goods made in their countries compared to those made in other countries, especially in developed countries like Canada. This comes from the fact that many Canadians assume that products made in Canada have high quality than those made in other countries, which shows that quality has a very important role to play in making up consumer minds (Henein & Morissette 32). It is also their belief that goods made in Canada are made with sustainable practices and standards of production, which ensure their safety. Motivations for buying Canadian made products for consumers include patriotic sentiments and national pride, trust that the products are made according to standards and practices required by Canadian authorities, environmental conscience and concerns, perception that the products are cheaper than products from other countries that have to be imported, support for the economy in Canada, and, most importantly, the availability of products that they consider to be Canadian quality (Henein & Morissette 33). From these reasons, it is clear that quality plays a huge role in making people buy Canadian made products, including buying Paderno’s products. “Made in Canada” More than ever, the social consciousness of consumers is pushing organizations to promote strategies aimed at corporate social responsibility (Henein & Morissette 49). In the case of Paderno, this should push them to showcase their products as having local characteristics. Even if their products are not made locally, such as the cheaper products they import, they can impress the consumers by laying emphasis on the local features that their value chain possesses, such as product assembly and design, as well as development and research. Companies should also highlight their impact on the local economy in a creative manner, such as with regards to creation of jobs, impact of product purchase on the local economy, or the local partners that they involve in various processes (Henein & Morissette 49). Consumers in Canada, as well as other developed countries, are increasingly searching for products that are made in Canada. These reasons are because of various consumer trends. One of these trends has to do with the buy local movement with most consumers now shopping closer to home (Henein & Morissette 50). They are also looking for goods that are locally made because they are aware that buying goods made in the country are a better choice both environmentally and ethically. Rising awareness on health may also impact Paderno’s Made in Canada brand as a population that is gradually ageing becomes more aware of their cookware choices and how they are ergonomically designed. Most Canadians now consider the impact that products will have on their health, especially food and, more recently, cookware, and are more willing to pay higher prices for products they trust, which are mostly Canadian made products. Canadian consumers are also increasingly frugal with their money as incomes stagnate, which means that they are more cautious about spending. As more Canadians live on fixed incomes, they will begin to turn to the best value for their money, which is Canadian made. Consumers are also showing an increased desire for goods that are customized, which means they are searching for what exactly they want. This, in most cases, is Canadian made. Finally, the internet culture has seen many Canadian consumers doing their shopping online, which, coupled with blogs that are increasingly talking about buying Canadian made products, has made it essential for companies to insist on the “made in Canada” brand (Henein & Morissette 50). The internet factor is especially important in perpetuating the Made in Canada brand since most people will first go to the internet when researching on a particular product (Henein & Morissette 51). At least 70% of consumers in Canada have reported that internet reviews of products, particularly those made in Canada, have influenced their buying habits. The consumers will browse the internet in order to find out the cost of a particular product and details on the selected product, such as ratings, materials, dimensions, and their origin. This trend is critical for Canadian businesses, including Paderno, in order to manage their image, particularly the reviews that they get on online forums. Normally, reviews are kinder for products that are made in Canada than those that are imported, which is reflective of a growing movement for locally made products. However, on top of having a presence on the internet, Canadian businesses had to come up with strategies on the web, of which the “Made in Canada” aspect is growing in importance (Henein & Morissette 52). At least 49% of Canadians reported that they make a conscious effort to buy locally made products, of which 90% believed that this would ensure the products were environmentally friendly and responsible, while some 97% said that buying local products helped to build the Canadian economy (Hoffman 51). In general, most consumers are willing to buy products made in Canada because they portend a positive impact on the country, as well as its employment numbers and the environment. By marketing a product as mad in Canada, a business can reap big advantages, especially if they do not sell outside the country, as is the case with Paderno. On example can be seen with the successful Canadian coat whose marketing is simply as a Canadian product, as well as the success seen by furniture stores that offer discounts on products that are made in Canada. The value consciousness of Canadians will work for Paderno, especially because of the high competition in discount retail that will disadvantage smaller enterprises that may offer competition (Hoffman 52). By offering other alternatives that save money for consumers, conscious consumers will be willing to buy their products based on their “Made in Canada” aspect. “Made in Canada” and Perceived Quality Because perception does not always mean reality, the “made in Canada” aspect of Paderno is more important than the quality. This is because, while their cookware may be more superior in terms of quality than other imported brands, they could still fall victim to public negative perceptions (Lamb et al 71). The consumer does not always possess all the information required about their products’ attributes, which means that other indirect measures, such as being made in Canada, may be the only way for them to compare brands. The durability of a product is rarely observable in a direct manner, meaning that it is inferred from other intangible and tangible aspects of the product. In this case, advertising their cookware as made in Canada with inferences about its quality, instead of reality itself is critical. Reputation is the basic building block of quality. The power of the product will come from an analogy that products today have similar quality to products made in the past, as well as the fact that product quality in a new line have similar quality to those in already established products (Lamb et al 71). “Made in Canada” and Performance Performance is referent to the primary characteristics of operation inherent in a product. It involves attributes that are measurable and allows for objective ranking of brands on individual aspects of their performance (Lamb et al 78). However, overall rankings of performance are not easy to develop, particularly if they have to do with benefits that are not required by all consumers. This makes the “Made in Canada” aspect play a bigger role with customers than performance. Performance is normally a contentious issue with customers, especially where there is no adequate definition of deliverables within specifications. It usually influences reputation or profitability of end users and because of this, most specifications and contracts include those damages that are related to insufficient performance. Issues on whether differences of performance are also differences in quality normally depend on preferences of circumstance, although the preferences have their basis on consumer functional requirements, rather than taste. While some standards of performance are based on the consumers’ subjective preference, these preferences are of a universal nature and, as such have a standard objective force (Lamb et al 78). Therefore, the aspect of “Made in Canada” has a greater role to play with regards to consumer choice compared to performance since performance is of a universal nature. “Made in Canada” and Warranty Warranty refers to the ability of a consumer or retailer to get access to service centers, responsiveness of the staff required for the servicing, and the service’s reliability. Consumers are concerned about the time that it takes for a product they buy to back in service after it malfunctions (Lamb et al 82). This has a significant effect on how the customer will view the product and the quality of the service. The manner in which a company handles consumer complaints and their warranty is important to the company’s service reputation. However, because companies now offer a wide variety of warranty services, while they also differ in how they approach their handling of product warranties, this aspect has become universal and requires to be backed up with other aspects. In addition, warranties do not cover items that have been improperly maintained, which will result in a significant gray area with regards to what a consumer takes to be proper maintenance. On the other hand, coupling warranties with “Made in Canada” will allow for consumers to feel safe in the knowledge that what they are buying is guaranteed by a Canadian company, as opposed to a foreign company (Lamb et al 82). This increases their confidence in buying products based on warranty, which would not have been difficult if only the warranty aspect was present. “Made in Canada” and Value Consumer value is important in the analysis of consumer satisfaction, which, in turn, is important because it leads to consumers buying from that company again. Consumer value is particularly important if there is saturation in the market (Lamb et al 87), as will soon become the case with Paderno. In this case, the only way that Paderno will grow is if it is able to take away market share from its competitors. Since Paderno is the only company that makes cookware in Canada, using the “Made in Canada” aspect in its marketing will convince some consumers to buy their products, as opposed to imported products. In addition, where a company that makes its products in Canada has a high perceive value, the consumers will most likely spread the word through the internet and by word of mouth, leading to increased sales. In addition, where value is complemented by the products being made in Canada, it will lead to customer loyalty. Various studies have also suggested that customer value can be used to improve the bottom line of a company (Lamb et al 87). By advertising the products as being made in Canada, Paderno will also add value to the products. “Made in Canada” and Price Most marketing campaigns around the world normally stress that what they offer is the best quality offered at a lower price. In rational economies, however, the two aspects should be in direct relation, meaning that products of high quality should be more expensive (Lamb et al 93). By marketing their products as being made in Canada, it is possible for Paderno obscure the rational relationship between the two. Increasing competition will result in dropping prices since consumers will generally chose to buy the less expensive choice when they have an alternative. As the competition increases, Paderno will have to market their product image as being of superior quality, while also using the fact that it is made in Canada as a way to explain away its higher cost compared to the imported brands. Public perception is very important compared to marketing veracity (Lamb et al 94). In a field where Paderno has no competition with regards to local cookware producers, Paderno will not be compelled to lower the price of their products since, as discussed earlier, at least 49% of the consumers will be drawn to products that are made in Canada, as compared to buying foreign made products. “Made in Canada: and Brand Branding is used by most companies to differentiate their offerings from other products of a similar nature (Lamb et al 101). In Paderno’s case, these other products are from foreign companies and this gives them the chance to advertise their products as made in Canada. When a product has a unique name, image, and appearance, most consumers will be able to find it in a marketplace that is crowded. Strong identity of brand also has an effect on the behavior of the consumer through creation of emotional habits, while also reinforcing the consumer’s habits of purchasing. The consumer has the choice between Paderno and other foreign firms who offer the same benefits and attributes. For high priced products like those offered by Paderno, most people will be motivated to spend effort and time in comparing the alternatives and researching on their attributes (Lamb et al 102). Branding, while simplifying how the consumers shop for the products, does not have the ability to make the choice for the consumer since the different alternatives both offer similar qualities, while some of the brands are also globally recognized. For this reason, marketing their cookware as made in Canada will be a good way to differentiate their brand from other foreign cookware makers. Branding also helps companies to create equity of brand, which is the value that Paderno will add to the basic functions and features of the cookware by applying the made in Canada standard. This will lead to their consumers having a more emotional attachment to their products (Lamb et al 102). How to Position Paderno as a Leader in Quality Products Positioning is related to the manner in which a customer will perceive the company’s products in their mind (Wall & Heslop 29). Quality of the product and its pricing has a major role to play in the formation of the required perception in the mind of the customer, while also affecting how they talk about the product to their friends, as well as how they review the products on the internet, especially on social media. For instance, if a consumer has the choice to buy cookware in Canada, they could buy one set of cookware for $500 or three sets of cookware that are worth a similar amount of money. Immediately, a consumer will be of the idea that the three sets of cookware have lower quality than the other cookware set worth $500. This is the approach of price-quality that Paderno should use. How the consumer perceives the quality of Paderno’s products is an important element because it can be combined with all the other aspects discussed above. Quality lies in the consumers’ mind and, by showing their consumers that they have the best quality, they can succeed in creating a powerful brand (Wall & Heslop 29). The best way for the company to improve on how the consumers perceive their products with regards to quality is by narrowing their company’s focus. When the focus of their company is narrowed, it will allow them to become specialists as opposed to becoming generalists. Specialists are normally taken to produce products of much higher quality compared to generalists. Another way that they can increase the perception of their products as being of high quality is by selling their products at a higher price. By attaching a higher price to their products, Paderno will allow their customers to feel that they are benefiting. This will allow those affluent customers who buy their products to feel psychological satisfaction by buying and consuming a product that is high end. This product, of course, will have to possess another difference to its competitors in order to make the higher price justified (Wall & Heslop 30), which, in this case, will be by ensuring the consumer knows that it is made in Canada. The Paderno brand constitutes more than a tagline or a logo, taking on a collection of the values of a company, the experience of the customers, and the design of the products, as well as other intangible elements the brand will attempt to repackage after distillation. For a brand that seeks to be an industry leader, Paderno requires more since it is a source of expertise and knowledge, which drive forward the industry and sets the pace for discovery, as well as innovation (Wall & Heslop 30). Paderno will have to be the best in the industry, which will mean it has to attract the best partners and people, while using them improve their profits. Paderno should acquire the best talent since they will be the future innovators. Since Paderno is already well known across the country of Canada, Paderno can get the best talent at a lower cost since it does not have any competitors in the country. They should also strive for the best partners in their business operations at better terms because they are the best and only indigenous cookware maker in Canada (Wall & Heslop 31). The company has the ability to pick the best distributors and sellers for its products, which will improve the perception that the consumers have about their cookware. In order to be an industry leader in cookware quality, Paderno will need to be committed to a process. In transforming into a quality leadership position, there is no miracle moment and they will have to pursue a pragmatic process to keep the company, its employees, and its managers on track in the long term (Okechuku 8). Positioning Paderno as a leader in quality will also require them to commit to a quality and consistent message to communicate the influence that the company has. It will not be possible for them to be considered as leaders of quality in the industry if they lack an authentic basis to claim so. Positioning by using the price and quality approach uses price and quality relationships by pricing their products optimally in relation to the quality of their product, which will ensure that the consumer keeps their product in mind when thinking about quality (Okechuku 8). A good example of this approach to price and quality is that used by premium car brands like Mercedes and BMW (Okechuku 9). These companies maintain their quality in order for their customers to pay high prices for their product. Therefore, the pricing and quality positions the products in the top social segments will allow them to achieve both quality perceptions and the high prices. This approach of relating the price to the quality of their cookware is a workable and successful tool for Paderno. However, this positioning tool should be used carefully by Paderno because it could impact on their strategy in pricing, which could reduce their profit margins. Work Cited Henein, Amal & Morissette, Franc?oise. Made in Canada Leadership: Wisdom from the Nation's Best and Brightest on the Leadership Practice and Development, Mississauga, Ont: J. Wiley and Sons Canada, 2007. Internet resource Hoffman, Ben. Win-win Competitiveness Made in Canada: How to Be Competitive Using the Consensus Approach. North York, Ont: Captus Press, 2012. Print. Lamb, Charles W.; Hair, Joseph F. & McDaniel, Carl D. Mktg4: Student Edition. Mason, OH: South-Western Cengage Learning, 2010. Print. Wall, Marjorie & Heslop, Louise A.. "Consumer attitudes toward Canadian-made versus imported products." Journal of the Academy of Marketing Science 14.2 (2009): 27-36. Okechuku, Chike. "The Importance of Product Country of Origin:: A Conjoint Analysis of the United States, Canada, Germany and The Netherlands." European Journal of Marketing 28.4 (2008): 5 - 19. Read More