Industry in its simplest sense may be defined as all those economic Free Essay Example

Industry in its simplest sense may be defined as all those economic tasks that involve the processing of raw materials and making the products in factories. Canadian industries are booming at a whirlwind speed. Economy of Canada is 16th largest one worldwide. Canadian industry comprises of highly adroit labor pool. Manufacturing industry is one of the flourishing industries in Canada. Canada’s chief manufacturing trade includes automobile, aerospace, food, machinery and clothing. But converting unprocessed material into final product is not the only task to be done.

After the product is ready to use, selling it is another crucial mission to be accomplished. This demands the contribution of retailers and wholesalers.

Retailers and wholesalers are often confused as one, but it is not true. Retailers are those who sell the products from some market place like shopping complex, departmental stores etc. in small quantities to the customer directly. Wholesalers, on the other hand are those who deal with sale of goods in the bulk amount and at discounted prices.

They sell the products for resale to other retailers, agents, or some other commercial or industrial users etc. wholesalers perform basic marketing for the companies from which they purchase merchandise and for those to which they sell merchandise.

Canadian retail sector plays a vital role in linking the production and sale of a product and thus has a significant effect on the economy. As per Ronald Savitt and Dennis Johnson (2015) retail trade organization of Canada is broadly classified in two types, namely retail chains and independent retailers.

Retail chains are those retailers who manage more than 4 stores in same kind of business and those stores are owned by a single owner. Examples of retail chain retailers are Hudson’s Bay, Sobeys, Shoppers Drug Mart, IGA etc. independent retailers are those who just operate 1 to 3 stores. Few examples are Home Hardware, Best Western, Boston Pizza, Subway, Mr. Lube, Giant Tiger, 7-Eleven etc. Based on amount of service, they can be categorized in three parts :- self-serve retailers such as Irving, limited service retailers such as Home Depot Canadian Tire and full service retailers like Tim Hortons.

Although anticipating and creating innovative ideas to have a strong communication and relationship bond with consumers is critical for retailers, but as consumer purchasing behavior is changing day by day, so retailers have had to adapt to it and work accordingly so as to stay in the competitive arena within retail marketplace. Price decisions is one of the strongest marketing strategy of the retailers, but the price of product also depends on the manufacturer from whom the retailer is supplied with the products that are to be sold. Numerous schemes such as standard markup, break-even, anchored pricing, market expectations, prestige pricing etc are used by the retailers to decide the price of a particular product. The standard markup technique does not involve competition. Break-even refers to the number of product units that retailer needs to sell in order to make profit after break-even point. Anchored pricing method is competition based. It may also be termed as bargaining method. It is the mutual discussion of retailer and consumer. If the consumer is willing to pay the anchored price, retailer may adjust it down slightly so that the new price looks very appealing to the consumer. Match market expectation means the concept of supply and demand. If the demand of an item is more, it will result in greater profit to the retailer. Prestige pricing technique involves charging higher prices so as to impart high image of the product. Another marketing strategy involved is promotion decisions. These include a partial refund or discount to consumers by the retailer for the purchase of a product. It may even include some gift cards, coupons or free vouchers for further purchase of any item from that retailer. Besides these, place decision is another marketing strategy practiced by the retailers. It refers to the idea of deciding that critical location where the product to be sold is in most demand. Joe Fresh, West 49 and Harry Rosen Menswear are few clothing retailers of Canada. Naked And Famous, Canada Goose, Roots and Sorel are some of the Canadian textile retailers.