Canadian Tire: A Strategic Analysis of Category, Branding, and Pricing

This report analyzes Canadian Tire's business strategies based on its annual report and provides insights into category management, branding, and pricing. The report begins by examining category management, specifically focusing on the tire category, its life cycle stage, and develops an assortment plan. It then delves into branding strategies, discussing the mix of national and private label brands, evaluating the company's private brand strategy, and making recommendations for future strategies. Finally, the report explores pricing strategies, considering factors like cost, demand, competition, and legal considerations. It also suggests potential changes to pricing methods and identifies price adjustments employed by the company, offering recommendations for further adjustments and sales stimulation techniques. The analysis incorporates various pricing approaches such as psychological pricing, competitive pricing, and promotional strategies, providing a comprehensive overview of Canadian Tire's market approach.

Running head- CANADIAN TIRE STRATEGY
Canadian Tire Strategy
Name of the Student
Name of the University
Author Note
1.

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1. a. The Canadian tire is one of the most reputed tires merchandising company in
Canada. Though with time the company has extended its product category to various
automotive parts, the tire produced and sold by the company has been the most well
known because of its durability and quality.
b. the product represents a product merchandise.
c. in its life cycle, the tires produced by the Canadian tires is at the point of
growth. It has already been introduced to the market and the demand of the same is
increasing gradually and thus, it is at present at the stage of growth (Leopkey & Parent,
2019).
d. A tire or in that case any automotive part is not brought by the customer by
means of impulse buying or just that it appeared beautiful to he customer. Thus, for this
product, the company cannot assort product according to the visual aesthetics. However,
the assortment planning for the product can be done by keeping the latest tires in front of
the showroom. The company can also put the mini models of the latest luxury cars or
motor bikes beside so in order to indicate that these tires even fits in with these luxury
cars. The assortment can be also done by placing the packs of tires beside other
automotive parts in order to generate curiosity and on asking, the details can be briefed.
2. a. the company of Canadian tires sells both the private as well as the national
brands. However, the private label brands are mainly encouraged. The major names in the
category of private brands are Pulser, moto master, out bound, NOMA, CANVAS, etc.
b. the Canadian tire is one of the most reputed and a successful company in Canada.
The company previously owned more national brand over the private or global brands for
their selling purpose (Gomez-Insausti, 2016). It was however, not less profitable for the
company yet, it lacked the global exposure it should get. At present the company has been

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encouraging their branding strategies by going more private in nature. This will help the
company in getting a diverse and a more global market place. Also, by means of bending
more towards the private brands, the company will have more scope of internationalization of
their business.
c. the current strategy of the company is the acquisition of the private brands. This
tactic help the company in having a capital incentive. However, the company can also opt for
the mergers and the partnership with some private brands in order to have a more riskless
business. The acquisition means that the company will have to be responsible for every
financial and non financial needs. Partnerships will make the financial burden can be halved.
3. a.
i. Legislation- The company also takes into account the laws of the land in case of
pricing strategies. That means that the company sets their prices as per the maximum
retail prices set by the government of the country.
ii. Competition- It also takes into consideration the discounts in online shopping and
special offers in case of loyal customers as a means of their marketing strategy and
having a competitive advantage against their competitors.. (Club, 2014).
iii. Cost- the pricing is also set based on the cost of production and cost of promotion.
iv. Demand- the company of Canadian tire does no compromises with the quality but
offers the product at various price levels according to the demands of the area.
b. the company can change the price setting by:
1. the company can set set price based on the internal cost and production cost.
2. they can set their price based on their brand value.
c. the company engages in the following price adjustments:

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1. the segmented pricing method can be used in this respect where the company uses
different price for different segments of customers
2. promotional pricing strategy is also encouraged in the case whereby the company
reduces price through gift vouchers, lucky draws etc.
d. the two new recommendation for adjusting the pricing adjustments are:
1. geographical price adjustments
2. dynamic price adjustments. For example while a competitor is selling a similar
product in same price, they adjust their price by introducing a premium model.
e. It has a variable pricing strategy that depends upon the market, competitive
dynamic and the product.
f.. 1. psychological pricing- the company can consider their pricing depending upon
the perception of the product and brand in particular region.
2. competitive pricing- the company can have a competitive pricing strategy that is to
gauge the price offered by the competitors in a particular region (Naraine, Dixon & Horton,
2015).
g. in order to simulate sales the company is using the discount and offers pricing
strategy through their online sales. The customers are earning points or coupons in the sense
of virtual money which actually helps them in getting discount to the products. Such services
are being catered to the loyal customers.
h. the company can stimulate sales:
1. by enhancing their promotional strategies not just through discounts and coupons
but also by engaging the customers and communicating with them.

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2.. offering separate level of benefits to different segments.

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Reference List:
Club, S. (2014). Annual Report 2017
Gomez-Insausti, R. (2016). Canada's leading retailers: latest trends and strategies for
their major chains. Canadian Journal of Regional Science, 29(3), 359-374.
Leopkey, B., & Parent, M. M. (2019). Risk management strategies by stakeholders in
Canadian major sporting events. Event Management, 13(3), 153-170.
Naraine, M. L., Dixon, J. C., & Horton, C. (2015). New to the board: A case study of
canadian tire corporation and the potential purchase of the forzani group limited. Case
Studies in Sport Management, 4(1), 120-131.