Market Segmentation Canadian Tire Analysis

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Canadian Tire is a well-known retail chain in Canada with 1200 stores spread across the country. It is one of the most popular shopping destinations for Canadians with 90% of the population visiting the store every year. The store caters to the needs of customers from various age groups, genders, and income levels. Canadian Tire’s customers are mainly middle-aged and belong to the Gen X category. The store’s popularity is due to its reputation for reliability, durability, and competitive pricing. Customers seek different benefits from Canadian Tire’s products, such as automotive, living, apparel, kitchen, sports, and financial services. Canadian Tire has faced strong competition from other retail chains such as Wal-Mart, Home Depot, and Target. However, it still has the potential to overcome its competitors by focusing on its products, pricing, and marketing strategies.

Table of Content

1. Region: Canadian tire is spread all over Canada with 1200 stores across the country. 2. Market size: 90 per cent of the Canadians visit CT every year. One third of sales are driven by strong in-house brands leading market share in many of key lines in business. 3. Market density: Canadian tire is one of the most shopped general merchandise retailers. A CT store is within 15 minutes reach of 90 per cent of Canadians and has 1200 stores across Canada. 4. Climate: The climate in Canada has great variations and weather patterns across the country. Snow tires, warm winter clothes are important products in many regions of Canada.

CT caters to these needs of Canadians. DEMOGRAPHICS 1. Age: Canadian tire’s average shopper is middle aged, so Canadian tire really gets into the 18-35 age groups. 2. Gender: Canadian tire is not gender specific; it appeals to both males and females. 3. Income: Canadian tire is preferred mostly by Gen X. They are the money making generation and they are more likely to shop at Canadian tire for its brand value, good products, best deals and appropriate pricing. 4. Race/Ethnicity: According to popular surveys, it has been observed that Canadian tire is mostly visited by 90 per cent of ‘Canadians’.

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PSYCHOGRAPHICS 1. Personality: People of all age groups, shapes and sizes, colours and races visit Canadian tire. 2. Motives: The motive of consumers who visit Canadian tire is to get the best product at best price. Canadian tire is a brand name people choose CT because of its reliability, durability of products and appropriate pricing. 3. Lifestyle: Lifestyle is an important factor in determining customer purchasing behaviour. Canadian tire customers are people with a stable life style, good income and can be called as “middle class” people. BENEFITS SOUGHT

Benefits segmentation divides up the market based on the benefits customers seek from using a product. Canadian tire’s customers have different reasons for shopping at CT. Canadian tire caters to a wide variety of needs of customers from automotives, living, apparel, kitchen sports and financial services, so customers find it beneficial to find them under one trusted brand name. USAGE RATE 1. Former: Till the 1990’s Canadian tire was the popular choice for consumers to shop at. Ever since Wal-Mart and Home Depot crossed border in 1990’s Canadian tire has struggled to maintain primacy. . Potential: Canadian tire still has the potential to overcome its competitors by working on its products, pricing and marketing. 3. Light/Regular: The usage by Canadian customers is regular at Canadian tire as 90 per cent of them visit CT every year. 4. Medium/Heavy: The usage of Canadian tire for shopping by Canadians is between medium to heavy presently due to competitions from Wal-Mart, Target, and Home Depot. Canadians turn to Canadian tire for shopping mostly when there are great deals and discounts going on good products.

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Market Segmentation Canadian Tire Analysis. (2016, Nov 05). Retrieved from

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