Tim Hortons resonates more with Quebeckers than Starbucks, while Canadian Tire is a hit in that province and Wal-Mart comes up wanting.
Why the differences?
A new study suggests that retailers based outside the province that want to get the nod from Quebeckers don't actually have to do anything different with their products or operations. Instead, they must come up with a spin that makes a connection with residents of la belle province, the study indicates.
The findings even surprised author Eric Blais, whose Headspace Marketing Inc. firm in Toronto commissioned the study and produced the report, which will be issued soon. "There doesn't seem to be a need to fundamentally adjust your offerings to Quebeckers," Mr. Blais said in an interview. "But there is a need to present it in a manner that speaks to Quebeckers."
Marketing experts tend to encourage retailers to vary their product selections if they want to succeed in Quebec, in a bid to respond to Quebeckers' unique tastes.
But the latest study suggests that any adjustments aren't worth the effort, Mr. Blais said.
For example, Tim Hortons got the No. 1 spot in the survey as the retailer that had best adapted to the Quebec market.
However, the coffee and donut chain serves up essentially the same menu and restaurant environment in Quebec as anywhere else, the survey found. It didn't even bother to change its name in Quebec; it just dropped the apostrophe from Tim Horton's at the same time it entered the Quebec market.
Despite that, "Tim Hortons has defintely struck a chord with Quebeckers," Mr. Blais said.
What Tim Hortons does right is get involved in community charities and activities, a strategy that appears to bring it closer to local residents, he said. Tim Hortons ran an ad campaign for years featuring two well-known Quebec actors -- dubbed Minou and Pitou -- who became synonmous with the chain.
In contrast, Starbucks Corp., which entered Quebec in 2001 -- just a few years after Tim Hortons -- got the lowest score among the 12 retailers evaluated.
And yet, Starbucks has gone to great lengths to adapt to Quebec's "unique" environment, Mr. Blais said. It changed its name to Cafe Starbucks Coffee and had a franchise operator, Vision Cafe Inc., run the Quebec stores. It even has an intense Quebec-only coffee blend called Melange Mont-Royal.
Nevertheless, Michael Aronovici, president of Vision Cafe, said it is still early days for Starbucks in Quebec. It only has 14 stores, and they're all in Montreal. He said he would like to have expanded faster, but couldn't find the right sites.
As for marketing, Starbucks has focused on pitching its products in billboard ads to raise awareness of its Quebec offerings. This summer it ran ads for its frappucino, while the rest of Canada had more general "lifestyle" ads. Sales have been rising at a double-digit pace, and business has been good, he said.
Wal-Mart Canada Corp. also got low marks, the second worst among the 12 retailers surveyed.
Mr. Blais said that the perception of Wal-Mart was probably coloured by the controversial fight to unionize stores. Earlier this year, the retailer closed its store in Jonquiere, Que., after the union won the right to unionize workers in that store.
At the other end of the spectrum, Canadian Tire Corp. Ltd. ranked second in adaptation scores, even though it remains "proudly Canadian" in what many perceive as a staunchly Quebec-nationalist province, Mr. Blais said.
"The retailer doesn't appear to have done things differently in Quebec," Mr. Blais said. "The merchandise mix, the unique products and the Canadian Tire money featuring the well known Scotsman Sandy McTire appear as popular in Riviere-du-Loup as in Kamloops."
Still, Canadian Tire store operators tend to get heavily involved in local charities through the Canadian Tire Foundation, spokeswoman Caroline Casselman said.
It hired Quebec singer Jici Lauzon as spokesperson for the Canadian Tire Foundation. The television and radio personality appears at promotional events to drive home the foundation's charitable work, Ms. Casselman said.
The Quebec quotient
Marketing experts tend to encourage retailers to vary their product selections if they want to succeed in Quebec. But a recent study suggests such adjustments aren't worth the effort.
Tim Hortons: Top score
The chain stuck with the same menu and restaurant environment as in the rest of Canada and instead focused on community involvement and championing local charities - which go a long way to endearing the company to Quebeckers, a new study suggests. As well, Tim Hortons ran an ad campaign for years featuring two well-known Quebec actors, dubbed Minou and Pitou, who have become synonymous with the chain.
Starbucks: Bottom score
Starbucks changed its name in Quebec to Café Starbucks Coffee, and set up a franchise system in province. (Outlets in the rest of Canada are run by the corporate office.) It even blended its own distinct brew for that province, called Melange Mont-Royal. Despite all that, Starbucks got the lowest Quebec-adaptation score. With only 14 stores in that province - all in Montreal - it still has a relatively low profile.
Adaptation score
1,000 Quebec men and women were asked to rate how well or poorly 12 retail brands had adapted to their needs and expectations. Of the 12 brands surveyed, three stand out as having the best per cent well adapted score to Quebeckers' needs and wants
Tim Hortons: 98%
Canadian Tire: 97%
Bureau en gros: 96%
Home Depot: 90%
Future Shop: 89%
IKEA: 88%
Loblaws: 88%
McDonald's: 87%
Winners: 83%
Second Cup: 81%
Wal-Mart: 77%
Starbucks: 64%
SOURCE: HEADSPACE MARKETING INC.