To win new consumers in a mature market, we first analyzed Canadian Tire’s loyalty database. By comparing sales generated from new and innovative products to those items that have been on shelves for more than two years, we realized that innovation drove results in three different meaningful ways:
It drove net new customers in store.
It increased the lifetime value of current customers.
It increased affinity with the Canadian Tire brand, which is valuable in the undifferentiated market of mass retail.
To win the innovation game, we had to:
Find a way to “scout” the newest and most innovative products, much faster than our competitors.
Prove that Canadian Tire could make these products available for consumer purchase in record time and change the perception that pure e-comm players (Amazon and the likes) were faster to market new products and innovation.
Claiming that Canadian Tire offers unmatched product innovation with conventional advertising was not an option. We needed to walk the talk! We developed a program as innovative as the products sold by Canadian Tire in its 506 stores across the country.
We developed a unique partnership with Dragons’ Den that went well beyond the typical media sponsorship or content integration. However, Dragons’ Den had problems of its own:
Problem #1: Hopeful entrepreneurs that come to the Den are not simply looking for funding of their start-ups. They are also looking for investors (dragons) that can open doors to product distribution and enable fast scalability.
Problem #2: it is common knowledge that about 90% of deals made on the show fall through due to the investor’s due diligence process or the entrepreneurs backing out of the handshake deals. Consequently, the show’s audience was losing faith in Dragons’ Den because only a few deals got through and made it to the market.
Canadian Tire could solve both these problems by offering a distribution deal to entrepreneurs live on the show. Guaranteed distribution of their products in Canadian Tire’s 500+ stores across Canada, was an opportunity that no investor/dragon could match! More importantly, it was the perfect advertising solution to reinforce that Canadian Tire offers more innovative products than any of its competitors.