Ontario and Quebec - Farms and Cows

...

which is required in our case.

Retail farm supply outlets

Increasing brand awareness

Costly for rent the retail store; Need more than one distribution store in each city.

Promotion

Promotions

Details

Budget

Trade shows

In Eastern Canada, Quebec, Ontario (London’s Western Fair Farm Show—draws 200, 000 visitors each year), and western Canada (Ag Expo---biggest in Canada)

$5000

including registration, booth rental, travel, meals, hotels etc.

Wall posters (i.e. Veterinary offices)

Among 1000* $2.5

$2500

Mailing tubes and postage

$3000

Full-colour flyers

$0.15 * 10, 000

$1500

Magazine advertising

Targeting veterinarians or dairy farmers: $600 to $1000 per insertion (per month)

$7200 to 12000 per year

Transport!!!!!!!

Cost: F.O.B. Toronto. (Do they need to pay for tax or tariff? What are other transportation costs?)

This means Free on Board – so until Toronto, the cost of shipping is taken care by the seller in our case the Chinese manufacturers. There would be shipping cost to CDMV locations as we assume

Price :

Manufacturing costs: range from $3.44 to $3.6 per boot. (The lowest price required a minimum order of 6,000 boots, the other two company required a minimum order of 5000 boots.

So total boots cost of import → 3.44*6000 - $20640

Now considering the distribution channel and promotion -

Distribution Channel Comparison Calculations :

Appx 20$ I have used,we can have any amount of money but it still highlights that the CDMV is better than Selling thro vets directly. Cos we can avoid the unmentioned costs of creating a market with vets, meeting them and transporting to their places PLUS giving 40% for inventory. Hence for the mentioned reasons it is reasonable to opt for CDMV wholesale distribution channel

PROMOTION

The table explains clearly with the affordable cost, we can have huge visitors which is a much more targeted promotion. As mentioned before, the less number of large animal vets and less number of farmers who visit veterinarians implies that the farmers are our target markets who need awareness and an impulse to buy the boots. Hence the farmer loss section would highlight the loss annually as well if needed.

SOLUTION : TRADE SHOWS AND CDMV