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Marketing
AgentMOGLI Canada|
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| MOGLI CANADA CANADIAN MARKET APPROACH |
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| 18555 St.Louis St.St.Hyacinthe, Qué. Canada J2S 8B1 |
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| MOGLI CANADA CANADIAN MARKET APPROACH 1- GENERAL __________ With a few exceptions, there is little manufacturing in Canada. The Canadian market is estimated to be worth anywhere from 2.5 to 5 billion dollars annually, However, it is spread out over a large geographical are. To bring it into prospective, there is more business in the Northeast quandrant of the United States than all Canada, an area ten times bigger. The dilemma for most manufacturers/exporters is how to penetrate the lucrative Canadian market in the most cost-effective manner. Generally, the approach has been in one of two ways; A) A manufacturer/exporter will establish his own operation in Canada B) A manufacturer/exporter will sell directly to master distributors and large OEM`s from their base outside of Canada. The cost of setting up an operation in Canada can be very expensive. A manufacturer/exporter would be faced with the following expenses; renting office and warehouse space, office and warehouse supplies and equipment, hiring a full staff to operate the office and warehouse plus hiring a sales force to sell the product. Also, there are other costs such as incorporation in Canada, Canadian business taxes, therefore this route requires a large volume just to break even. Setting up a Master distributor will only meet with a limited success. The added step in the distribution chain quite often makes the product non-competitive to the ultimate consumer. Other distributors will only purchase the products from a master distributor when they have no other alternatives as they are competitors on any given products.Therefore, a master distributor will limit market penetration due to the limited numbers of distributors selling products. There are also many difficulties created when a distributor or OEM deals with a supplier outside of Canada. They must consider cureency exchanges to obtain their price in Canadian dollars. Duty, brokerage, customs and paper handling all add to the cost of products entering in Canada. Freight and brokerage charges can increase the cost of a small item up to three times its original purchase price. This will drive an OEM or distributor to buy a competitive product wich they can procure locally. 2- CONCEPT __________ We propose an alternative to the prior choices. We can offer you a cost-effective method of establishing your presence in Canada. Wheter your select to take advantage of our sales force service only or elect to utilize all of our services we offer will depend on your particular set of circumstances. While each situation varies, the basic principles apply.We can offer you a method of having a sales force, with an office, order desk, and a warehouse, if required, without the high cost of supporting your own operation. 3- PRICING __________ When purchasing products from another country, a distributor in Canada must consider the exchange rates, duty, freight, and brokerage. All these varying costs must be determined before a handling cost can be obtained. In many instances,the distributor or OEM has neither the time nor the expectise to do this with any degree of accuracy. As a result,his calculated cost may be inaccurate on the high side and can make you appear non-competitive or inaccurate on the low side, in which case he loses money. We can work with you to "Canadianize" your pricing so the distributor and OEM will be able to easily and accurately know what his cost is. 4- PRODUCT PROMOTION ____________________ Our strength is our coast-to-coast relationship with distributors and OEM`s alike. In addition to direct customer contact, we can work with you on direct mail program. Our mailing lists includes major OEM`s and distributors across Canada. We can recommend some excellent trade publications, should you want to advertise your product to the Canadian market. We rely on you for any training aid, product samples and other promotional material that may be available. 5- INSIDE SALES _______________ As part of our warehouse service, we provide an order desk to handle orders and inquiries on your product line. This provide the customer with a " local " person to deal with. From our location we can answer any questions in both French and English languages. 6- INVENTORY ____________ By establishing an inventory in a Canadian city or location, you will be capable of significantly improving your service to both distributors and OEM`s. a local inventory allows your customers to purchase products from you in both emergency cases and when the dollar value of the invoice is low. This prevents the customer from purchasing a competitor`s product who carries an inventory locally. The cost of your product to the customer will be reduced as you ship bulk into Canada, due to the lower rate charged for freight. In addition, the minimal broker`s fee for clearing becomes insignificant when spreading it across the larger volume being shipped. Inventory in our warehouse is insured by you, the manufacturer/exporter. Generally, a rider on your policy gives you the coverage you need. In the unlikely event we go into receivership or become bankrupt, your product is not at risk. Since we do not assume title of the merchandise, creditors would not have claim on your product. 7- CUSTOMS __________ You are allowed to set up as a non-resident importer into Canada. We can assist you in this area and can work on your behalf to ensure you are getting the lowest duty rates possible. In some instances, we have been successful in getting duty remissions on certain products. All this contributes to making you more competitive in Canada. 8- RECEIVABLES ______________ Payments may be sent directly to you or to our location. If you so choose, you can open a bank account with a Canadian bank and we can make deposits ( we would be unable to withdraw) into this account on your behalf. Credits collection is generally your responsability, our role is at the problem level. 9- COMPENSATION _______________ we are generally paid on a commission basis. Sometimes in special circumstances, fees are involved. The amount of pionneering, competitiveness of the product, level of existing sales, degree of internal handling, warehousing and other factors are all considered to arrive at the final rates. Out-of-pocket expenses for other services and materials rendered or purchased on your behalf are debited monthly at cost, ex.; purchasing forms on your behalf. 10- OPERATING IN CANADA _______________________ Canada has agreements with the United States,Mexico, France, England and all other European countries that allows foreign companies to operate here as non-resident importers. This means that you can import into Canada on your own behalf, you can hold a Canadian federal Sales tax license once you meet the same rules as Canadian companies have to meet, you can bill in whatever currency you wish, hold your goods wherever you choose, bank in Canada, if you decide and you can do all of this without incurring any corporate Canadian income taxes.You do not have to incorporate here thus saving all the one-time and on-going legal and accounting costs involved. 11- SUMMARY ____________ As a shared cost, fixed cost, and lower cost, way of going to market, we can work with you to develop attainable plans that will increase your market share and sales in a cost-effective and competitive manner. Our formula is geared to succeed. 12- YOUR EXPENSES ( COMPLETE OPERATION BASE IN CANADA ) _______________________________________________________ We are offering to act as " your company " full Canadian operation. You would act as were a part of " your company " in offering you: 1- Warehouse facilities 2- Inventory control 3- Full representation 4- Inside order desk 5- Shipping and Receiving for all Canada 6- Invoicing 7- Collection 8- Bank account on your behalf 9- Credit check and supervision of new accounts 10-Preparation of Canadian tax returns 11-Advertising and Marketing 12-Your inventories will be covered by our insurance against loss/fire 13- YOUR COST _____________ A) Warehousing and inside operation : a fixed monthly fee will be negociated and payable the first day of each mont. B) Sales commissions : a fixed % of commission on all sales from Canada. These commissions are to be paid no later than the 15th days of the following month of sales. We would offer a one to two years contract negociable at every year end upon our performances. Please feel free to contact ; Michel Hamel, president, for more information. |
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| St.Hyacinthe, | Québec | J2S 8B1 |
 m.hamel@hy.cgocable.ca |
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| Visitors: 02065 |