Friday, 21 March 2014

SOCIAL MEDIA: Canadian brands ignoring francophones on social media: study

Canadian brands ignoring francophones on social media: study Add to ...

Advertisers spend billions of dollars per year to speak to consumers. So when those consumers take notice, and talk back, it would seem the last thing any company would want to do is ignore them.
And yet, in the venue that consumers increasingly choose when they want to talk to brands – social media – many francophone Canadians are feeling left out of the conversation.


According to the survey, fewer French-speaking Quebecois follow brands on Facebook – just 29 per cent, compared with 35 per cent in the rest of Canada. That is especially bad news for marketers because those same French speakers are far more likely to pay attention to the brands they do follow: 69 per cent read messages posted by brand pages on Facebook “as if they are from one of their friends.” That is a huge difference from the rest of the country, where just 16 per cent of those surveyed said they read brand posts that way.That is according to a new study from Headspace Marketing, a consulting firm that specializes in marketing to Quebec. The researchers spoke to 3,000 Canadians and found that marketers are missing an opportunity to endear themselves to Quebeckers through Facebook.
And yet, francophone Quebeckers are more likely to stop following brands on Facebook.
Why? The two biggest reasons were because they stopped liking the brand or that the brand did not respond to an inquiry they sent. Comparatively, in the rest of Canada, people said they unfollowed marketers most often because their content was not relevant or the brand posted too frequently. Both of those reasons scored less than 10 per cent in Quebec.
“When people are asking questions or commenting ... that’s where there is a bit of radio silence for brands [in French],” said Headspace president Eric Blais. “If you’re encouraging people to follow you on Facebook, and they reach out to you, and you don’t respond? That to me is the equivalent of having a customer call centre and not having anyone to answer the phones.”
For example, Samsung Canada’s Facebook page has community managers who write in both English and French. However, the page is sometimes slower to respond to French speakers. On Feb. 2, a customerposted to the page complaining about a problem with the case for his Samsung Galaxy Tab; there is no response to his comment as of late Thursday, despite the fact that a question from a customer also posted on Feb. 2 in English received a response on the same day.
Samsung said its bilingual community manager tries to respond to as many comments as possible, and that the company regularly responds to customers in French.
But some of its francophone fans have a different impression. This week, a French-speaking customer posted on the page with a complaint about her television and another customer responded to her comment saying that it seemed as though the company does not read comments written in French.
Even when companies do post in French, those posts do not always reach French-speaking consumers. That is the problem Target Corp. faced when it first launched in Canada.
When it launched its Canadian social media in August of 2012, it had a single corporate Facebook page, with posts in both English and French. Like many marketers, it would “target” many of those posts by promoting them through Facebook to make them more visible to people who speak one language or the other. But because some Quebeckers converse in French while leaving their default English settings on their Facebook accounts or on their mobile phones, those French posts were not reaching them.
“We would hear from people, ‘Why don’t you post in French?’” said Sebastien Bouchard, a public relations manager at Target Canada’s Montreal office. “They’re frustrated because they’re not receiving the content in their preferred language. ... We were surprised how many people were asking for French. We do have French, but it’s not effective to ask fans to change their settings.”
So, after some deliberation, last August the company decided to launch a separate page for Canada entirely in French. While many marketers take care to post in English and French on their brand pages, dedicating the resources needed to managing a separate brand presence in French is very rare. “Target en français” now has roughly 139,000 followers (the English page has 1.9 million) whom the company now converses with in French.
“Some brands that are big enough are taking a ‘two page’ approach, for example Target and Molson,” Facebook spokesperson Meg Sinclair said in an e-mail. “That’s another way to manage, but I’m not sure it would be our first recommendation because it takes more time and resources.”
She pointed to companies such as Air Transat, L’Oréal Paris Canada, andReitmans as examples of brands with bilingual pages that do a good job of targeting their content by language.
Reaching consumers with more targeted messages is becoming more of a concern for marketers, especially since Facebook has been signalling to them that “organic reach” – the ability to reach people with regular messages, without boosting them with paid targeting – is falling. That’s because there is simply more activity on the site with people posting and sharing content; more noise means it is more likely people might miss a post.
“We have not given a specific reach number that [brand] pages should expect to see because organic reach will vary by page and by post,” Facebook said in a statement. “Like many mediums, if businesses want to make sure that people see their content, the best strategy is, and always has been, paid advertising."
For Target, the investment has increased its engagement from French speaking consumers markedly. The company measures engagement by the number of people commenting or sharing its posts with friends, or clicking the “like” button. Engagement rates average around four times its number of fans, Mr. Bouchard said. Target needs all the marketing boost it can get in Canada, as its launch has hit a snag with customers whose high expectations for the brand here have not been met. Its social media marketing is one thing the company appears to be getting right.
Still, Headspace‘s Mr. Blais admits that ironically there may be an upside to some of the marketing silence in French on social media. The conversational environment is so noisy in English that it has bred a greater resistance to those messages. The research showed that in the rest of Canada, nearly eight out of 10 people either skim or skip brand messages on Facebook altogether, but less than one-third of French speakers in Quebec said they did so.
“What’s happening is a bit of Facebook fatigue – you’re cluttering my feed with too much stuff, and not relevant content, so people in English Canada are much more likely to skim or skip. This has become clutter,” Mr. Blais said.
The challenge for marketers will be to take advantage of the friendlier environment among francophone consumers without creating the same kind of exhaustion.
“Less attention was paid to French Quebec, but as a result you have a less intrusive presence,” Mr. Blais said. “...That could erode over time. Maybe Quebec will get to the point where brands will post too frequently in French. But it’s not happening now.”

Thursday, 20 March 2014

CHINA ECONOMY: China’s Premier warns on economic slowdown, ‘severe’ challenges

China’s Premier warns on economic slowdown, ‘severe’ challenges

Chinese Premier Li Keqiang warned on Thursday that the economy faces “severe challenges” in 2014 – comments that came as weak data fanned speculation the central bank would relax monetary policy to support stuttering growth.
Li, speaking at a news conference on the final day of China’s yearly parliament, hinted Beijing would tolerate slower economic expansion this year while it pushes through reforms aimed at providing longer-term and more sustainable growth.

“A storm is coming,” said Gao Yuan, an analyst at Haitong Securities in Shanghai, while Hao Zhou, the China economist for ANZ said “policy easing should be imminent.”Data released shortly after his comments suggested that tolerance may face an early test. Growth in investment, retail sales and factory output all slumped to multiyear lows, suggesting a marked slowdown in the first two months of the year.

At the carefully orchestrated briefing where questions had to be vetted in advance, Li spent most time discussing the economy. But he also touched upon other topics, including friction in relations with Washington, corruption, pollution, and the disappearance of a Malaysia Airlines aircraft.
While acknowledging the economy faced difficulties, Li suggested Beijing would not let growth slip too far. The government has targetted a rise of GDP in 2014 of 7.5 per cent after actual growth last year of 7.7 per cent.
“We believe we have the ability, and all the means, to ensure that economic growth will stay within a reasonable range this year,” he said.
He also signalled the government will allow further debt defaults after Shanghai Chaori Solar Energy Science and Technology Co Ltd failed last Friday to pay an interest payment on its five-year bonds.
The first default on a domestic bond was hailed by experts as a landmark that will impose more market discipline, a break from the past when bonds enjoyed an implicit guarantee because the government would bailout troubled firms to ensure stability.
Growth in Chinese corporate debt has been unprecedented. A Thomson Reuters analysis of 945 listed medium and large non-financial firms showed total debt soared by more than 260 per cent to 4.74 trillion yuan ($777.3-billion) between December 2008 and September 2013.
“We are reluctant to see defaults of financial products, but some cases are hard to avoid,” Li said. “We must enhance oversight and solve problems in a timely way to ensure no systemic and regional risks.”
Li said financial and fiscal reforms are among top priorities this year, reinforcing market expectations that long-awaited changes to liberalise bank deposit rates and efforts rein in local government debt could be in the pipeline.
Chinese leaders unveiled plans last year for sweeping reforms aimed at transforming the economy’s reliance on investment and exports, which have fuelled double-digit growth for three decades, to one that leans more on services and consumption. It included allowing market forces to play a bigger part in the economy.
PRIORITY ON JOBS
The signs of a slowdown in the economy this year have raised worries among some investors that China will miss the 7.5 per cent growth target.
“The momentum is really quite weak,” Wei Yao, China economist for Societe Generale said after Thursday’s data. “Q1 GDP growth is probably already below 7.5 per cent. The government will probably do some easing.”
Yao said she expected the central bank to reduce bank reserve requirements by 50 basis points. Major banks currently have to put aside a fifth of their cash as reserves and such a measure would represent the central bank’s strongest policy easing since 2012.
Sources involved in internal policy discussions told Reuters earlier this week that the central bank was prepared to cut bank reserves if economic growth slowed further. But they said policy action may only happen in the second quarter.
Li skillfully dodged a question on how far Beijing would let economic growth slip before it steps in with policy measures to support activity. Still, he hinted at tolerance for below-target growth, as long as enough new jobs are created.
“The GDP growth target is around 7.5 per cent. ‘Around’ means there is some flexibility and we have some tolerance,” he said, adding that the lower limit on growth must ensure job creation.
Finance Minister Lou Jiwei said last week that China can slightly miss the 7.5 per cent growth target as long as enough jobs are created.
However, Xu Shaoshi, the head of the pro-growth National Development and Reform Commission, said on Wednesday that the 7.5 per cent target would be the lower limit for the government.
Beijing wants to create 10 million new jobs in 2014 and Li has said that the economy must grow 7.2 per cent annually to do that. Some 13 million new jobs were created last year when the economy grew 7.7 per cent.
Premier Li said the government will take a differentiated approach to cool the property market, rather than using one-size-fits-all policies used by his predecessors that have largely failed to calm real estate inflation.
“We need to apply differentiated property measures in different cities based on different types of demand and local conditions,” Li said.
But on government corruption, Li had an unequivocal answer.
“We will show zero tolerance for corrupt behaviour and corrupt officials. No matter who it is, or how senior their position, everyone is equal before the law,” Li said, without mentioning any names.
Speculation has gathered around China’s former domestic security chief Zhou Yongkang, who sources say is at the centre of a corruption investigation reaching into the highest echelons of government, though Beijing has yet to formally confirm this.

Wednesday, 19 March 2014

HEALTH ALERT: RUMBLE DRINKS LTD expands sales across North America

Paul Underhill created the nutritious drink Rumble. (CHAD HIPOLITO FOR THE GLOBE AND MAIL)
THE CHALLENGE

Cyclist wants you to try the drink that made him healthy again

Each week, we seek expert advice to help a small or medium-sized business overcome a key issue.
Originally concocted in a kitchen blender, Rumble was designed by Paul Underhill, who was born with cystic fibrosis and underwent a double lung transplant in 2011, to bring himself back to health.
The nutrient-rich shake is packed with 20 grams of protein in each 12-ounce bottle, along with kale, walnut oil, pomegranate and beet juice – just to name a few of its all-natural ingredients. An avid cyclist, Mr. Underhill, 44, wanted to create a nourishing beverage that was free of the artificial additives in the meal replacement drinks that his doctor suggested.



Sales of the product, which comes in Dutch cocoa or vanilla maple at $3.99 a bottle, brought in about $500,000 in 2013. Rumble has a 12-month shelf-life – a great advantage for shipping and storage – but is usually sold in the refrigerated case. It is available at Whole Foods and natural foods stores across Canada as well as in fitness clubs and cycling shops. Sobeys, Thrifty Foods and Longo’s have also begun to carry the product.
By November of 2012, the former B.C. government employee launched Rumble Drinks Ltd. along with co-founders Kim McQueen, a naturopathic doctor who helped tweak the formula, Steve Hughes and James McQueen.
Last year, the Victoria-based company successfully made its case on the CBC’sDragons’ Den. Although that deal didn’t happen, by mutual agreement, Rumble went on to receive private funding from another Toronto investment group. The company plans to expand to the United States, where its strategy will be the same as in Canada – start in natural foods stores and then follow with conventional grocery stores.
Labeled as a “nourishing drink” by the Canadian Food Inspection Agency, the first in that category, and as “Rumble Supershake” for the U.S. market, Mr. Underhill says the biggest challenge for the company is explaining what his product is.
“You have to relate it to things that people already know,” Mr. Underhill says. “So we’ll say it’s not a meal replacement or a natural energy drink or a smoothie, but it has elements of all three.”
With a consumer marketing budget of $75,000, which includes its U.S. launch this spring, the company isn’t sure what to do.
THE CHALLENGE: How can Rumble market a difficult-to-categorize product with only a shoestring budget?
THE EXPERTS WEIGH IN
Mark Ferrier, founder and owner of the marketing and advertising agency TraffikGroup Inc., Toronto
Rumble has a great product but they haven’t actually figured out how to make it into a brand that fills a need consumers have. They’re trying to be everything to everyone. That’s not a good strategy.
Go into a category that has the same affinities and consumer base that you want, then give them more.
For every hero, there needs to be an enemy. When you find someone who is spending a lot of money to build a marketplace, “jetstream” that marketplace. I call it a host. Rumble needs to find a host and be the better solution for those consumers who have already bought into that segment, because they don’t have enough money to create a segment for themselves.
I’d go into recovery beverages, which are athletic-focused. They could look at what chocolate milk has done and find their niche in that segment. Milk 2 Go Sport has done a great job in building that category with relevance.
Rico DiGiovanni, president and partner, Spider Marketing Solutions Inc., Toronto
You can’t do much with $75,000, so Rumble will have to go more guerrilla and social media. They should listen in to the action on social media in regards to energy, nutritional drinks and fitness (i.e. cycling) to try to find some key influencers – people who have large followers in those categories – to really create a buzz.
If the product is good and they can get it into enough influencers’ hands, it will work. Then it becomes part of their success story for the larger retailers. People trust those influencers much more that they trust any kind of advertising methods. Rumble might get that natural mass groundswell at the grassroots level.
Also, it helps if you can get people asking store managers for it. Nothing drives distribution quicker than a shopper saying, “I’m looking for X. Help me find it.” The large chains react to demand.
Peter Neal, co-founder, Neal Brothers Foods Inc., a natural foods distribution, marketing and production company, Concord, Ont.
Rumble is premature in going to the United States. There’s no rush to get it to market. The product isn’t distinctly different enough that someone will copy it and they’ll lose their competitive edge. With a half-million in sales in Canada, their business is just starting to grow. They should have sales of at least $3-million here first.
They should spend their $75,000 all in Canada. I’d allocate $10,000 toward point-of-purchase materials, from shelf danglers to custom display racks. The danglers should help tell their “feed your hunger” message, and the display racks should have the same look, feel and footprint as a Power Bar rack. A portable display rack can go anywhere – next to where the product is positioned in the cooler section or in the dry goods right in front of the nourishing protein bars. Put racks in the Running Room, MEC, New Balance and other specialty stores ... but don’t just drop them off. Engage the people who’ll be selling your brand. Get in with your team, hand out product, tell the story, hug them – so they’ll be able to speak the gospel to their clients within their stores.
Paul has a story that needs to be told, so I’d also hire a PR firm. Ask what they can do in nine months for $30,000. Cystic fibrosis, double lung transplant, an avid cyclist – I’d have PR pushing toward Paul’s cycling community. It’s huge. I’d spend $10,000 on good technical Rumble gear – such as great cycling shirts and give them out to cycling teams. People love that.
THREE THINGS THE COMPANY COULD DO NOW
Display counts
Spend money on point-of-purchase display racks and materials that tell your story.
Whom are you up against?
Figure out who your real competition is, then focus on doing it better. Sometimes what you are can be defined by what your competition is not.
Find influencers
Seed the product with people who have influence on social media. Then let them talk it up.
Facing a challenge? If your company could use expert help, please contact us at smallbusiness@globeandmail.com. Follow us @GlobeSmallBiz and onPinterest. Join our Small Business LinkedIn group. Add us to your circles.Sign up for our weekly newsletter.

Tuesday, 18 March 2014

ECONOMIC RECOVERY: PREPARING FOR 2014-2015

PREPARING FOR 2014-2015
Presented March 17, 2014 at TEC meeting in Toronto, Canada by Alan Beaulieu, ITR Economics

Senior executives, entrepreneurs, small business owners alike must take action now to be successful.  Regardless of your leadership style, these strategies will help guide your company to prosperity.

  • Positive leadership modeling where culture turns to behavior
  • Invest in consumer market research – know what they value
  • Implement training programs surrounding people, process and internal metrics
  • Review and uncover competitive advantages
  • Spend $ on new products, marketing and advertizing
  • Improve efficiencies with investment in technology and software
  • Check systems for readiness to accommodate increased activity
  • Lock in costs
  • Judiciously examine credit
  • Work on “what’s next"




Monday, 17 March 2014

PORT METRO VANCOUVER AT CRISIS LEVEL, FORCE MAJEURE DECLARED

The ongoing Vancouver port labour dispute has reached a crisis level as terminals are nearing full capacity. As shippers are seeking alternative options by rerouting cargo to nearby ports, some ocean carriers have introduced more drastic measures declaring a Force Majeure, indicating their intent to discharge Vancouver-bound cargo in other ports such as Tacoma and Seattle.
 
Terminal Systems Inc., (TSI) the operator of Vancouver’s Deltaport and Vanterm terminals, has announced that without a resolution to the strike Vanterm will reach capacity and buffer space for local traffic will be exhausted by the the week of March 16, 2014. As a result of a Force Majeure, Vanterm will only be able to discharge import containers destined for rail, and local Vancouver import containers will be unable to discharge for trucking off the terminal. 
 
The existing backlog is so extreme that the effects of the strike are not yet being felt for east bound rail cargo. However, the strike actions are compounding delays already being experienced due to extreme weather and high volumes since late January, and matters will only get worse unless a solution is found. 
 
In order to minimize the delays for all rail bound cargo, we recommend the optional ERS (Expedite to Rail Service) service offered by Vancouver’s Deltaport and Vanterm terminals. This added service prioritizes containers on to rail for an additional charge. Currently, containers on that service are in fact loading substantially quicker to rail. 
 
Without immediate action the ports may in fact close by early next week. The consequences of mass vessel diversions and declarations of Force Majeure will be devastating. CIFFA broadcasted an announcement (copy attached) urging every Canadian citizen every CIFFA member firm, association, importer and exporter to express their concerns to the federal government to the following contacts:
 
The Honourable Ms. Kellie Leitch
By email to: kellie.leitch@parl.gc.ca
Minister of Labour
Ottawa, ON K1A 0A6
 
The Honourable Ms. Lisa Raitt
By e-mail to: mintc@tc.gc.ca
Transport Canada
Minister of Transport,
Ottawa, ON K1A 0A5
 
The Honourable Mr. Ed Fast
By e-mail to: ministerofinternationaltrade@international.gc.ca
Minister of APG & International Trade
House of Commons, Ottawa, ON K1A 0A6
 
Action plan requests an immediate return to work by the striking truckers.
 
Late last night the Honourable Lisa Raitt, Minister of Transport, the Honourable Todd Stone British Columbia Minister of Transportation and Infrastructure, and Robin Silvester, President & Chief Executive Officer, Port Metro Vancouver, announced concrete action to end the trucking dispute in Port Metro Vancouver. A 14-point action plan (attached) has been collectively agreed upon to return the port to normal operations. 
 
Nevertheless, it will take weeks to sort out the backlog and regrettably, newly arrived containers may be delivered before some containers that are buried in the backlog.

Sunday, 16 March 2014

Agri-food Trends: The sacredness of Canadian agriculture

The sacredness of Canadian agriculture

You’ve got to hand it to Western Canadian grain farmers – it’s never easy for them. Name another sector that needs to worry about flood, drought, heat, frost, rain, grasshoppers, rising input prices, mice, hail and crop disease. It’s always something.
In 2014, you can add to the list of frustrations an inability to get rail cars. For reasons that vary depending on whom you ask, Canadian National Railway and Canadian Pacific Railway have been slow in delivering grain hopper cars to elevators this winter. Due to the bumper crops that were harvested last fall, elevators across the Prairies are plugged to the gills with grain – they can’t take in any more. And if farmers can’t deliver their grain, they don’t get paid. And then they get mad.


The railways deny that, saying oil traffic makes up a very small percentage of their sales. According to them, they’re hauling almost as much grain as they usually do at this time of year – maybe a bit less due to cold temperatures and avalanches. The problem, CP and CN say, is the unusually large volume of grain produced in 2013. They just don’t have the capacity to haul it all to the ports as quickly as farmers would like. They also blame a lack of co-ordination across the entire supply chain, pointing the finger back at the producers, port terminals and elevators.Predictably, there are a lot of fingers being pointed and a lot of versions of the story. According to the farmers, the railways are the villains in the story. They’re too busy zipping tank cars of bitumen around the country to bother with the less sexy wheat and canola.
But aren’t the railways doing exactly what they, as profit-maximizing companies, should be doing: maximizing profits. The old system of price caps to haul grain was eliminated years ago, but under the current Canada Transportation Act, the railways still face a “maximum revenue entitlement” from grain. They face no such restrictions in shipping bitumen or other commodities.
The spat between the farmers and the railways reached Parliament on March 7, and there was a clear winner. Federal Transport Minister Lisa Raitt ordered CN and CP to increase the number of grain hopper cars to elevators. The story here has little to do with economics and everything to do with politics, since farmers vote and railways do not.
Farming in Canada has always been an exceptional sector, enjoying a level of political clout that no other industry can boast. If anyone questions why, for example, we need supply management in dairy or special revenue caps for grain, they’re glared at and asked “Don’t you know where the food on your plate comes from? Do you want to go hungry?” Farming has always been framed by the notion that we’re all only one meal away from starvation.
Canadian agriculture manages to command a degree of sacredness that even the Pope would envy. If agriculture – from dairy protectionism in Quebec to maximum revenue entitlements on western grain – was truly opened to market forces, there would be outrage. Combines would roll onto Parliament Hill; ice cream would be hurled at an effigy of the Prime Minister. It would be chaos.
A century ago, it may have made good sense to protect agriculture through various measures such as the Canadian Wheat Board, price caps on freight rates, and supply management in dairy and poultry. But today, agriculture is one of the fastest-growing and most technologically advanced sectors of the economy – especially on the Prairies this year. Canada is a global leader in agricultural exports. Is it still so sacrilegious to suggest that perhaps they no longer require the economic protection they once did?
Rather than maximum revenue caps and orders for railways to haul more grain, Canadian farmers would be better served by another action taken this week by Ottawa: the free-trade agreement with South Korea. By removing trade barriers, Canadian agricultural products will find new global markets.
If the railways were allowed to maximize the revenue they receive from hauling grain, it might be surprising how quickly they’d find a few spare grain cars sitting around – and how immediately those grain elevators would be emptied.
Todd Hirsch is the Calgary-based chief economist of ATB Financial and author of The Boiling Frog Dilemma: Saving Canada from Economic Decline.

Saturday, 15 March 2014

DANNON PLEDGES TO IMPROVE NUTRITION PROFILE OF YOGURT

DANNON PLEDGES TO IMPROVE NUTRITION PROFILE OF YOGURT


Specifically, the company pledged to improve the nutrient density by 10% of the Dannon product portfolio overall by increasing nutrients that are encouraged in the diet, like vitamin D, and decreasing total sugar and fat; reduce the amount of total sugar in Dannon products to 23 grams or less (per 6-ounce serving) in 100% of products for children and 70% of the company's products overall; reduce the amount of fat in Dannon products so 75% of products will be low-fat or fat-free; and invest $3 million in nutrition education and research focused on healthy eating habits.

Dannon’s commitment goals are based on the latest nutrition science and authoritative guidance from the Institute of Medicine (IOM) and the 2010 Dietary Guidelines for Americans (DGA) that recommend Americans consume more nutrient dense foods, like yogurt.

“We applaud Mrs. Obama and Partnership for a Healthier America for their commitment to the health and future of our children and adults," said Dannon’s President and CEO Mariano Lozano. “As the largest maker of yogurt in the United States today, it’s a privilege and a responsibility to continually improve the cultured dairy foods we carefully prepare every day for the millions of families who enjoy our products. Dannon’s commitment to Partnership for a Healthier America represents another big step in our journey to help address the issue of obesity in America."

To achieve the 2016 goal, recipe developers and other experts at Dannon will build on their achievements from last year's reformulation of the company's children’s product, Danimals® smoothies, in which the company reduced sugar by 25% while maintaining great taste, texture and convenience. Dannon’s new introduction of a Greek yogurt, Danimals SuperStars, specifically designed for the preferences and nutritional needs of kids, already meets the strict criteria announced today.

Sources: