Global Marketing Prospects in Canada
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Classroom presentation on international business prospects in Canada.
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Global Marketing Prospects in Canada
- 1. Global Marketing Prospects in Canada By J. Kano International Business University of Phoenix
- 2. Dental Equipment and Supplies The $433 million Canadian dental equipment and supplies market is expected to grow 6-8% in 2009. Products that meet the demand for cosmetic, aesthetic and restorative dentistry, orthodontic and periodontal care are the best prospects. Computerized systems and diagnostic equipment including x-ray machines and innovative emerging technologies are in high demand.
Notes de l'éditeur
- Reference: Canada-Dental Equipment and Supplies.
- This geographical proximity coupled with common free market values, language, business practices, and a similar standard of living - where U.S. goods and services account for approximately 60 percent of purchases - make Canada our most important export market in the world, and an ideal market for U.S. companies wanting to make their first export sale. And thanks to the North American Free Trade Agreement (NAFTA), there are no tariffs on industrial and most agricultural products imported from the United States.
- The $433 million Canadian dental equipment and supplies market is largely satisfied by imports and is estimated to grow 6-8 percent in 2009. The best prospects in the Canadian market are for products designed to meet the demand for cosmetic, aesthetic and restorative dentistry, as well as orthodontic and periodontal care. Demand for innovative and technologically advanced equipment such as laser instruments, computerized systems linked to cameras, and other diagnostic equipment including x-ray machines as well as emerging technologies like digital imaging all represent excellent export prospects for U.S. suppliers of these products.
- Canada had strong economic growth, historically low unemployment, and financial stability through 2007. Canada is receptive to American goods and services showing interest in high quality, competitive products that improve market competitiveness and quality of life.
- Canada resembles the U.S. as being a high-tech industrial society in a trillion dollar class. Canada resembles the U.S. with its market-oriented economic system, pattern of production, and affluent living standards. Canada is the larges world supplier of energy, oil, natural resources, uranium, and electric power. Given its great natural resources, skilled labor force, and modern capital plant, Canada has enjoyed solid economic growth, and prudent fiscal management has produced consecutive balanced budgets from 1997 to 2007. Because of recent tight global credit conditions, growth slowed sharply directly related to the U.S. housing slump, auto industry, and downturn in the global commodity prices. Despite the credit conditions, conservative lending practices and strong capitalization that made Canada's major banks among the most stable in the world.
- The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US, its principle trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs nearly 80% of Canadian exports each year.
- The North American Free Trade Agreement (NAFTA) makes trade easier and more lucrative for U.S. firms. Since NAFTA came into force in 1994, the United States and Canada have progressively eliminated tariff and non-tariff barriers to trade in goods, improved access for services trade, established rules on investment, strengthened protection of intellectual property rights, and created an effective dispute settlement mechanism. In January 2008, Canada eliminated tariffs on all remaining industrial and most agricultural products imported from the United States. Today, over 95 percent of all trade passes across the border without incident or controversial trade restrictions, as a result of increased and continuing U.S. and Canadian harmonization of product standards.
- . Import restrictions in Canada are limited to complying with their customs, bilingual labeling and packaging requirements, and federal and provincial sales taxes. Canada’s trade rules and regulations are relatively east to comply with the elimination of tariff and nontariff barriers to trade goods. There are no significant trade barriers for U.S.-made dental equipment and supplies. In fact, Canadian dentists are very receptive to innovative, high quality products made in the United States. U.S.-made dental products and supplies can be imported into Canada duty free. Nonetheless, imported dental equipment and supplies sold in Canada must comply with the regulations detailed in the Canadian Food and Drug Act including that of medical devices and therapeutic products.
- Canada has three branches of government: Executive, Legislative and Judicial. The Executive branch is head up by a Head of State, Queen Elizabeth II and a Governor General, Michaelle Jean. Another part of the Executive Branch is the Head of Government which is Stephen Harper, the Prime Minister. Among the Executive Branch is also the Cabinet, called the Federal Ministry who is chosen by the Prime Minister and usually consists of people sitting in Parliament. The monarchy is hereditary. The governor general is appointed by the monarch for a 5-year term, based on the advice of the prime minister. Following legislative elections, the leader of the majority party or the leader of the majority coalition in the House of Commons is automatically designated prime minister by the governor general. The legislative branch is made up of Parliament which consists of a senate (105 seats), and a House of Commons. The senate is appointed by the Governor General (on the advice of the Prime Minister) and serves until they are 75 years old. The House of Commons (308 members) are the only ones who are elected by direct popular vote and serve a maximum of 5 year terms. The judicial branch is made up of the Supreme Court of Canada whose judges are appointed by the Prime Minister through the Governor General and the Federal Court of Canada; Federal Court of Appeal; Provincial Courts (these are named variously Court of Appeal, Court of Queens Bench, Superior Court, Supreme Court, and Court of Justice)
- Political challenges facing Canada are meeting public demands for quality improvements in health care and education services, as well as responding to separatist concerns in predominantly francophone Quebec. Canada also aims to develop its diverse energy resources while maintaining its commitment to the environment. Canada’s legal system is based on English common law, except in Quebec, where civil law system based on French law prevails; accepts compulsory ICJ jurisdiction with reservations.
- Canadian businesspeople often begin relationships in a reserved manner; once people get to know one another is becomes friendly and informal. Canadians appreciate politeness and expect others to adhere to the proper protocol for any given situation. Shake hands with everyone at the meeting upon arrival and departure. Maintain eye contact while shaking hands. Men may offer their hand to a woman without waiting for her to extend hers first. Honorific titles and surnames are usually not used. Academic titles are important in Quebec and are used with the honorific Monsieur or Madame. In Quebec, have one side of your business card translated into French. Hand the card so the French side faces the recipient. Businesspeople are generally polite, easy-going and somewhat informal. In general, communication is” moderately indirect” perhaps reflecting an amalgamation of both North American and British tendencies.
- Most Canadians have a strong allegiance to their province or region, sometimes more so than to the country. There are some broad differences between regions, which can generally be summed up as follows: Atlantic Provinces (Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland): The people are somewhat reserved and provincial, to the point that they are seen as old-fashioned. Ontario: This is the business hub and the people tend to be business-like and conservative. Western Canada (Alberta, Manitoba and Saskatchewan): The people are open, friendly and relaxed. British Colombia: The people are less conventional. This province is often viewed as the Canada of the future. Quebec: The French region, has a distinct cultural identity. The people are extremely regionalistic/independent. North: The people have a strong pioneer spirit.
- Pricing is a part of the market entry strategy and in Canada with the Canadian dollar coming in lower than the U.S. dollar. T he U.S. exporter may be forced to raise its prices to the Canadian importer, or by pricing in Canadian dollars, to absorb the increase and keep its price down. When the Canadian dollar goes up against the U.S. dollar, the U.S. exporter can cut its prices, or by pricing in Canadian dollars, retain the extra profit.
- Even though Canada is well known for its publicly funded healthcare system, a little known fact is that the dental industry is not included in this universal plan. The only conditions resulting in dental coverage falling under the government health care is if someone needs to be hospitalized. Because of these conditions, the Canadian dentistry is a private sector market. Less than 5% of all dental care was paid for by public sources in 2007. Canadians have also spent over $10 billion (US dollars) through out of pocket insurance for dental care from approximately 45,000 dental professionals. Half of these people are dentists and the other dental hygienists. These numbers do not include the others associated in the dental industry such as dental assistants, clerical staff, and lab technicians.
- About 50 percent of the demand for dental equipment and supplies in Canada is for products used by dental practitioners and surgeons, who provide professional dental care in the various disciplines of dentistry in Canada. The other half of the demand encompasses the use of disposable and consumable dental supplies such as syringes, needles, cements, composites and alloys. For the last two decades, education campaigns have promoted better health awareness and the importance of maintaining better dental care. Canadians have turned to more proactive measures and have increased their demand for more dental visits. There is a higher frequency of visits among children under the age of 12 and between ages 12-19 (more than once a year). The older age group (75+) still have a 50% rate of consulting their dentist annually.With increased life expectancies and health awareness, the dental community in Canada is developing and steadily evolving along with the demand for quality professional dental care in all age groups of the population.
- As Canada's population ages, the market will experience a significant growth in the demand for treatments and procedures geared toward this segment of the population, including restorative and cosmetic procedures as well as orthodontics and periodontal care.
- Currently, no more than five percent of the cost of professional dental care provided to Canadians is assumed by publicly-funded programs. Individual insurance premiums and employers' programs cover about 65 percent of the cost of dental care. The remaining 30 percent is assumed personally by Canadians, either because they have no dental insurance coverage, or because of deductibles and partial coverage clauses in insurance arrangements. Those in high-income levels and those with higher education levels also have better insurance coverage. When visiting dentists, nine out of ten Canadians are faced with a non-reimbursable out-of-pocket payment portion. Because of this Canadians are going to be more picky on who they select for their dentist and it also creates more competition in the profession itself.
- Dentists must provide the latest available technologies and innovations in order to satisfy and retain their clientele. To keep up with demand, dentists must modernize and replace equipment on a regular basis, as well as continually monitor new product techniques and applications. The ability to integrate computer technology support and dental/clinical instrumentation is currently in high demand and is significant in growth for the next five years.
- The demand for software-based equipment is expected to grow rapidly as more Canadian patients (better informed through the internet), become aware of some of the advantages provided by advanced dental equipment. Canadians increasingly seek dentists incorporating the latest technologies in their practice and expect them to be integrated into their personal dental care. In aesthetic dentistry, for example, patients are increasingly familiar with imaging and other technologies offered in aesthetic care practices. They expect these technologies to be a routine part of dental care procedures. Digital radiography is prime example of technological improvements that increase the overall market demand for dental equipment and supplies. Through digital radiography, the limited duration of x-ray exams (due to potential contamination), and the time spent to develop conventional film is eliminated. Digital radiography permits the quantification of exams and results, allowing dentists to deliver a more complete diagnosis and clearer interpretation of test results.
- The Canadian Dental Association regroups all buyers of dental equipment. There are nine specialties: Dental Public Health, Endodontics, Oral and Maxillofacial Surgery, Oral Medicine and Pathology, Oral & Maxillofacial Radiology, Orthodontics and Dentofacial Orthopedics, Pediatric Dentistry, Periodontics and Prosthodontics. More than two thirds of these professionals practice within the limits of larger urban areas of Canada, particularly the metropolitan areas of Toronto, Montreal, Vancouver, Calgary, Edmonton, Winnipeg, Saskatoon, Ottawa and Halifax.
- Products examined in this analysis include dental equipment purchased by dental practitioners, such as dental chairs, lamps, compressors, suction equipment, mixers, sterilization equipment, furnaces, burs, hand/surgical instruments, drills and micro motors. Also included are laser, tens (transcutaneous electrical nerve stimulation) and ultrasound equipment; x-ray and other imaging/diagnostic equipment; artificial teeth, braces and implants; and, consumable materials such as syringes, x-ray films, hand pieces, cements, composites, alloys, amalgams and other dental fillings.
- These are the best products in mind for promoting to the Canadian Dental Market because they meet the demand for cosmetic, aesthetic, and restorative dentistry and orthodontic and periodontal care.