The document provides information about Canada and Canadians, including Canada's geography, population statistics, population distribution, language demographics, income levels, and internet usage. Some key details include: - Canada is the second largest country by total area and has a population of over 30 million people. - The majority of Canadians live within 60 miles of the US border, with over 30% living in the three largest cities of Toronto, Montreal, and Vancouver. - 23% of Canadians speak French, most of whom live in Quebec province.

2. Agenda
Canada and
Canadians
The Business
Environment
Canadian Direct
Marketing Facts
Canada Post
Corporation

3. Canada and Canadians
Canada: The Land
Canadians: The People
Population Growth
Immigration Trends
Labor Market
Income and Consumer Spending
3

4. Nunavut
Canada: 2nd Largest Country in the World
Manitoba
British
Columbia
Northwest Territories
Yukon
Territory
Ontario Quebec
Alberta
Saskatchewan
Nova Scotia
Newfoundland
and Labrador
New
Brunswick
Prince
Edward Island

5. Pacific
Standard
Time
Mountain
Standard
Time Central
Standard
Time
Eastern
Standard
Time
Atlantic
Standard
Time
Newfoundland
Standard Time
Canada Spans 6 of the World’s 24 Time Zones

6. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
January

7. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
February

8. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
March

9. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
April

10. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
May

11. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
June

12. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
July

13. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
August

14. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
September

15. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
October

16. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
November

17. Canada Is Home to 5 Unique
Climatic and Thermal Zones
-40 and Below +30 and Above
December

18. Population Comparison:
How Canada Measures Up to the US
Canada United States
30.42 million 285.02 million

19. Population Density
Canada
5 people/sq. m.
United States
48 people/sq. m.
Statistics Canada
US Census Bureau

20. 75% of Canadians Live in 19 Areas of >100,000
20

21. 80% of Canadians Live Within 60 Miles
of the US Border
21

22. 30% of Canadians Live in 3 Major Urban
Centers…
Statistics Canada
Montreal QC
3.6 million
Vancouver BC
2.1 million Toronto ON
5.1 million

23. 30% of Canadians Live in 3 Major Urban
Centers…
Statistics Canada
Montreal QC
3.6 million
Vancouver BC
2.1 million Toronto ON
5.1 million
Seattle WA
2.7 million
Boston MA
4.5 million
Miami FL
4.9 million

24. Provincial and Regional Population Counts
Territories
102,400
Prairies
4,411,300
British
Columbia
4,146,600 Ontario
12,238,300
Quebec
7,487,200
Atlantic
Provinces
2,344,000
Statistics Canada

25. Population Distribution by Province and Region
Territories
0.3%
Prairies
16.8%
British
Columbia
13.1% Ontario
38.7%
Quebec
23.7%
Atlantic
Provinces
7.4%
Statistics Canada

26. Home Language by Province and Region
90% 0.3%
English French
British
Columbia
Territories
88% 1.2%
English French
Atlantic
Provinces
89% 8.6%
English French
85% 2%
English French
Prairies
84% 3%
English French
Ontario Statistics Canada

27. 23% of Canadians Speak French.
The Majority of These People Live in Quebec.
90% 0.3%
English French
British
Columbia
Territories
88% 1.2%
English French
Atlantic
Provinces
89% 8.6%
English French
85% 2%
English French
Prairies
84% 3%
English French
Ontario Statistics Canada
10% 82%
English French
Quebec

28. Average Family Size by Province and Region
Territories
3.3
Ontario
2.7
Quebec
2.4
Atlantic
Provinces
2.7
Statistics Canada
British
Columbia
2.5
Prairies
2.6

29. 1950
1960
1970
1980
1990
2000
2004
33.8%
12.9%
7.1%
18.1%
15.3%
Canada 13.6 million
Canada 18.2 million
Canada 21.5 million
Canada 24.8 million
Canada 28.0 million
Canada 30.0 million
Canada 32.5 million 0.92%
National Population Growth
Statistics Canada
18.5%
13.4%
11.4%
9.8%
14.6%
USA 151.3 million
USA 179.3 million
USA 203.3 million
USA 226.5 million
USA 248.7 million
USA 285.0 million
USA 293.0 million 0.92%

30. Provincial Population Growth Rate 1996–2001
Alberta
B.C.
Ontario
Northwest Territories
P.E.I.
Yukon Territory
Quebec
Saskatchewan
Manitoba
Nova Scotia
New Brunswick
Newfoundland and Labrador
10.3%
4.9%
6.1%
-5.8%
0.5%
-6.8%
1.4%
-1.1%
0.5%
-0.1%
-1.2%
-7.0%
Statistics Canada

31. July 1, 1999 July 1, 2001 % change
0–14 years old 5,917,365 5,725,540 -3.8
15–24 4,121,648 4,009,140 -3.7
25–44 9,722,165 9,096,555 -6.5
45–64 6,939,496 7,287,305 +5.0
65+ 3,790,620 3,888,545 +2.5
Total 30,491,294 30,007,085 -2.6
Population by Age Group
Statistics Canada

32. Migration: Over 3,310,095 People Move
Each Year in Canada
Y2B 4E2
X1S 3J4
Statistics Canada

33. Migration: Over 3,310,095 People Move
Each Year in Canada
Y2B 4E2
X1S 3J4
J7U 9E2
K8Y 2V5
Statistics Canada

34. Canada Post Can Deliver Them
to You at Their New Addresses
Y2B 4E2
X1S 3J4
J7U 9E2
K8Y 2V5
K1H 8U3
S5K 7U2
Statistics Canada

35. Canada Post Can Deliver Them
to You at Their New Addresses
Y2B 4E2
X1S 3J4
J7U 9E2
K8Y 2V5
K1H 8U3
S5K 7U2
E3B 6G2
A5R 6C3
Statistics Canada

36. Canada Post Can Deliver Them
to You at Their New Addresses
Y2B 4E2
X1S 3J4
J7U 9E2
K8Y 2V5
K1H 8U3
S5K 7U2
E3B 6G2
A5R 6C3
Statistics Canada

37. An Aging Population
• The number of people aged 65 and over in Canada
is forecast to increase by 100% in the next 25 years
(1 in 5 Canadians will be 65+).
• What kinds of products and services will they need?
Can you meet those needs?
– COMPARISON: The number of people in the US aged 65 or
over is projected to increase by 80% during the same
period.
Statistics Canada
US Census Bureau

38. Age Profiles (%)
Statistics Canada
US Census Bureau
Canada — Age Profiles United States — Age Profiles
2001 2006 2001 2006 2001 2006 2001 2006 2001 2006 2000 2006 2000 2006 2000 2006 2000 2006 2000 2006
Under 19 20–34 35–44 45–64 Over 65 Under 19 20–34 35–44 45–64 Over 65
21
20
17
29
13
24
26
16
12
22
25
20
28
12
26
16
20
13
25
15

39. Educational Attainment
1999 1999 1999 1999
High School Post-Secondary High School Post-Secondary
Education Education Education Education
Statistics Canada
US Census Bureau
(Note: persons aged 15 or over)
89% 89% 51% 52% 89% 88% 47% 48%
Female Male Female Male Female Male Female Male
Canada United States

40. Average Family Income
British
Columbia
$64,821
Alberta
$71,399 Saskatchewan
$57,005
Manitoba
$59,005 Ontario
$73,849
Quebec
$59,297
Newfoundland
and Labrador
$49,679
New
Brunswick
$52,704
Nova
Scotia
$54,786
P.E.I.
$53,958
Statistics Canada
Canadian National Average:
$66,160
Northwest Territories
$75,102
Nunavut
$52,624
Yukon
Territory
$69,564

41. Share of the Household Wallet ($ Annually)
Food $6,684
Shelter $11,204
Household operation $2,783
Household furnishings $1,793
Clothing $2,450
Transportation $8,431
Health care $1,590
Personal care $829
Recreation $3,537
Reading material $285
Education $926
Tobacco and alcohol $1,478
Games of chance $313
Miscellaneous $901
Statistics Canada

42. Summing It Up
• 80% of Canadians live within 60 miles
of the US border
• 30% of Canadians live in three urban areas
(Vancouver, Toronto and Montreal)
• 23% of Canadians list French as their mother
tongue (most of them live in the province of
Quebec)
• High average family income
• Low unemployment

43. Economic Background
A Vibrant Market
Retail Spending
Use of Credit and Debit Cards
Canadians and the Internet
Business and the Internet in Canada
43

44. Regulatory and Policy Framework
FEDERAL PROVINCIAL
PARLIAMENT
LEGISLATIVE
ASSEMBLIES
Canada is a confederation of provinces and territories
with a Parliamentary Democracy.

45. Germany
-0.1%
Canada
1.8%
Growth in GDP of the G7 Nations, 2002–2003
USA
2.9%
France
0.1%
Italy
0.3%
United
Kingdom
2.2%
Japan
2.7%
Statistics Canada

46. Same Currency Denominations As in the US
Canadian
Denominations
Quarter Dime Nickel Penny
United States
Denominations
Quarter Dime Nickel Penny

47. Canada: Where $10 Is More Than $10
• The strength of the US currency means that US$10
buys you approximately $13.50 worth of goods and
services in Canada.
Approximate rate of exchange — July 2004

48. Annual Retail Sales of Over $277 Billion
• Retail sales per capita
Canada United States
$10,024 $11,254

49. Credit Cards
• Over 50.4 million credit cards in circulation.
Canadian Bankers Association

50. The INTERAC™ Debit Card Payment System
• Canadians are voracious debit card users.
• INTERAC transactions increased by 190% from
1998–2003.
• INTERAC has now surpassed cash
as the preferred method of
payment for Canadians.
INTERAC Organization, 2001

51. Canadians and the Internet
Percentage of Households Online
Household Internet Penetration
Business and the Internet in Canada
51

52. Percentage of Households Online
• An estimated 18.6 million people, or 62% of those
aged 15 and over, used the Internet in 2002.
1998 35.9%
1999 41.8%
2000 51.3%
2001 60.2%
2002 61.6%
Statistics Canada

53. Canada Is a Wired Nation, from Coast to Coast.
Household Internet Penetration: 2000
British
Columbia
56%
Alberta
59%
P.E.I.
51%
Newfoundland
and Labrador
45%
Nova
Scotia
52%Saskatchewan
47%
Manitoba
50%
Quebec
44%
Ontario
54%
New
Brunswick
45%
Statistics Canada

54. Canada Is a Wired Nation, from Coast to Coast.
Household Internet Penetration: 2002
• 71% of Internet households have at
least one person who regularly uses
the Internet from home a minimum
of seven times a week.
British
Columbia
66%
+10%
Alberta
64%
+5%
Saskatchewan
58%
+11%
Manitoba
60%
+11%
Ontario
67%
+13%
Quebec
53%
+9%
P.E.I.
54%
+3%
New
Brunswick
49%
+4%
Nova
Scotia
58%
+6%
Newfoundland
and Labrador
51%
+6%
Statistics Canada

55. Business and the Internet in Canada:
The Outlook Is Good
• $19.1 billion in e-commerce customer orders
in 2003.*
• Up 40%, following a 27% jump in 2002.*
• B2B accounted for 93% of Canadian e-commerce
revenue in 2003.
• 34% of Canadian enterprises had a Web site in 2003
— they accounted for 85% of all gross business
income in Canada.
* Canadian Bankers Association

56. * emarketer, April 2004
** International Data Corporation (IDC) March 2003
*** Statistics Canada 2003
Business and the Internet in Canada:
The Outlook Is Good
• 1 in 3* Canadian Internet users have purchased
online.
• 6.2 million online buyers in 2003.*
• Forecast to reach 11.6 million by 2006.**
• From 1999 to 2002 the number of Canadian
households buying online increased from
800 thousand to 2.8 million.***

57. Business and the Internet in Canada:
The Outlook Is Good
• 82% of Canadian online shoppers would prefer to
buy from Canadian sites BUT nearly half of their
purchases are from sites in the US or abroad.
• Reasons why:*
– better selection and price
– more sites
– higher quality goods and services
• DIRECT MARKETERS TAKE NOTE: Canadians who
purchase through mail order, telephone or
catalogues are also MOST LIKELY to shop online.**
* Deloitte & Touche and Angus Reid
** CANOE/Pllara Research

58. Summing It Up
• US$10 gets you approximately $13.50 in Canada.*
• Canada is your largest trading partner already.*
• More than 64% of Canadian households are wired.**
• Forecast for 11.6 million Internet buyers by 2006.***
• Canadian online shoppers find US e-commerce
Web sites offer better selection, price and quality.
* Canadian Bankers Association
** emarketer, April 2004
*** International Data Corporation (IDC) March 2003

59. Ad Spending and Sales
Direct Marketing in Canada
Sales Due to Direct Response Marketing
Forecast Direct Mail Volumes
Canadians Embrace Direct Marketing
59

60. Share of Ad Spending and Sales
• Share of Ad Spending
• Sales by Major Market
Business Segment
47.1%
Business Segment
43.4%
Consumer Segment
56.6%
Consumer Segment
52.9%

61. $8.1
$8.8
$3.8
$4.3
$9.4
$9.9
$12.9
$4.1 $4.4 $4.6
$6.2$4.7 $4.9 $5.2
$6.7
Historical Ad Spending by Major Market
($ Billions)
13
11
9
7
5
3
1
% Growth % Growth
1995–2000 2000–2005 Projected
Total Consumer Business
1995 1999 2000 2001 2005
2.8% Total
2.9% Consumer
2.7% Business
6.6% Total
6.1% Consumer
7.2% Business

62. $43.8 $46.9
$18.6
$25.2
$51.2
$55.3
$81.7
$19.9 $22.3 $24.4
$37.7$26.9 $28.9 $30.9
$44.1
Total Sales Due to Direct Response Advertising
by Major Market ($ Billions)
85
75
65
55
45
35
25
15
5
% Growth % Growth
1995–2000 2000–2005 Projected
Total Consumer Business
1995 1999 2000 2001 2005
3.2% Total
2.8% Consumer
3.7% Business
9.8% Total
8.8% Consumer
11.1% Business

63. Total Canadian Ad Spending by Medium
(millions of Canadian dollars)
Medium 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Change
Television 1,707 1,771 1,850 1,982 2,103 2,312 2,387 2,456 2,561 2,612 53%
Daily Newspaper 1,863 1,832 1,900 1,960 2,304 2,379 2,428 2,581 2,501 2,510 35%
Radio 722 741 748 792 856 930 965 1,015 1,063 1,094 52%
General Magazines 339 327 316 318 347 451 460 514 541 558 64%
Out-of-Home 104 121 142 165 177 219 243 263 281 273 162%
Catalogue/Direct Mail 984 1,071 991 1,110 1,168 1,251 1,190 1,254 1,489 1,511 54%
Internet – – – – 10 25 56 110 97 117 117%
Yellow Pages 855 847 864 892 899 935 975 1,027 1,045 1,060 23%
Miscellaneous 844 845 855 878 934 1,090 1,119 1,165 1,177 1,194 41%
Total Advertising 7,418 7,556 7,666 8,097 8,798 9,591 9,822 10,384 10,755 10,928 47%
Television: Statistics Canada, CRTC, TVB estimates; Daily Newspaper: CNA for Total, estimates for breakdown; Radio: Statistics Canada, CRTC;
General Magazine: Magazines Canada (note: the method for estimating Magazine revenue changed starting with the 1998 figure); Outdoor: ACN;
Direct Mail: Canada Post; Internet: IAB; Yellow Pages: TeleDirect; Miscellaneous: includes estimates for Community Newspaper, Trade & Other Print;
Population: Statistics Canada Mid-Year Population by Year; Note: Some figures may differ from previous charts due to updating.

64. Direct Mail 13.8%
Television 23.9%
Newspaper 22.9%
Radio 10.0%
Magazine 5.1%
Internet 1.0%
Out-of-Home 2.5%
Yellow Pages 9.7%
Other 10.9%
Share of Ad Spending by Medium — 2000
Television: Statistics Canada, CRTC, TVB estimates; Daily Newspaper: CNA for Total, estimates for breakdown; Radio: Statistics Canada, CRTC;
General Magazine: Magazines Canada (note: the method for estimating Magazine revenue changed starting with the 1998 figure); Outdoor: ACN;
Direct Mail: Canada Post; Internet: IAB; Yellow Pages: TeleDirect; Miscellaneous: includes estimates for Community Newspaper, Trade & Other Print;
Population: Statistics Canada Mid-Year Population by Year; Note: Some figures may differ from previous charts due to updating.

65. How Canadians View Their Mail
• Research reveals that Canadians like to receive mail.*
• 84% of Canadians read all of their mail.**
• Attention is given to 74% of direct mail.***
* Mark Lovell Focus Groups, 2000
** PMB, 1999
*** CMA, 2000

66. Canadians Embrace Direct Response Advertising
• In Canada, total sales due to Direct Response
Advertising are expected to increase to $81.7 billion
over the next 5 years.
• In 2000, sales generated specifically through
addressed advertising mail totaled $16 billion.
This is forecast to rise 63% to $26.2 billion
in 2005.

67. Canadians Embrace Direct Response Advertising
• Canadians prefer to pay for goods in Canadian
currency and like Canadian-oriented customer
support.
• Offers and promotional materials that address
Canadian cultural issues and concerns are the most
effective.

68. Canadians Embrace Direct Response Advertising
• Direct mail represents 34% of purchases
from all direct initiatives.*
• On average, Canadian response rates to
direct marketing are 25% higher than
those in the US.**
* CMA
** Statistics Canada

69. Direct Mail Saturation Rate in Canada
• Addressed Admail volume in 2000: 1.38 billion
• Number of Canadian Households: 11.3 million
• Average number of pieces per week: 2.6
Calculation: (addressed admail volume ÷ number of
households) ÷ 52 weeks

70. Summing It Up
• Current Direct Marketing market is valued at
$16 billion.
• Sales from all direct response advertising channels
is projected to be $81 billion by 2005.
• Canadian DM response rates tend to be 25% higher
than in the US.
• Canada is under-served in DM: Average only
2.6 addressed DM pieces per week.

71. The Canadian Postal Code
Solutions Based Around You
Communications
Marketing and Selling
Shipping and Delivery
Supply Chain Management
71

72. Postal Code Anatomy

73. Postal Code Anatomy
Province

74. Postal Code Anatomy
City or Rural
Designator

75. Postal Code Anatomy
Postal Station
or County

76. Postal Code Anatomy
Local Delivery
Unit or Town

77. Slight Differences in Terminology
USA Canada
State Province
CASS SERP
SCF FSA
Zip+4 LDU
First Class Mail Lettermail
Periodicals Publications Mail
Standard Mail Admail
DMM Postal Guide
Carrier Route Letter Carrier Walk
Zip Code Postal Code
USPS
Canada Post Corporation

78. Solutions Based Around You
• Canada Post offers innovative solutions to meet
every business need.

79. Communications
• We can keep you connected with your customers
across Canada. From physical and electronic
services, to hybrid solutions combining elements of
both, we offer a range of services to meet most
communications needs.

80. Marketing and Selling
• Obtaining sales leads, increasing retail traffic, selling
online — whatever your objectives,
Canada Post has the services to help you reach
them. For one-to-one marketing to targeted
geographic or psychographic coverage, we can
help you generate response.

81. Shipping and Delivery
• Across towns, the provinces or the country, regular
speed or courier service, documents or packages,
Canada Post provides a complete set of smart
shipping services to get your deliveries there
on-time and at the right price.

82. Supply Chain Management
• For order management and fulfillment, inbound
and outbound transportation, reverse logistics and
systems integration, Canada Post has the expertise
and infrastructure to design and provide supply
chain services to companies wishing to enter
the Canadian marketplace without making large
capital expenditures.

83. Canada Post Borderfree
• Canada Post Borderfree is a partnership between
Canada Post Corporation and Borderfree Ltd. which
provides US e-tailers and catalogers with solutions
for turn-key international expansion.
• Borderfree offers a full range of industry leading
marketing, technology, logistics and financial
solutions for US companies looking to expand their
business without significant investments of time,
resource or capital.
• For more information on Canada Post Borderfree
visit http://www.borderfree.com

84. Canada Post’s Solutions at Work
• Business Goal: Prospect for leads in Canada
Strategy:
• Use GeoPost+, Canada Post’s FREE
psycho-demographic analysis tool, to identify
neighborhoods that match your customer profile
(i.e. Age, income, presence of children, and more)
• Distribute lead generation mail piece to targeted
neighbourhoods using Unaddressed Admail (postage
rates as low as US$.06 each)

85. Canada Post’s Solutions at Work
Strategy:
• Use Business Reply Mail at a Canadian address
(PO Box) to return leads
• Use the leads to send personalized direct mail
pieces to prospects using Addressed Admail or
AdCard for Addressed Admail
• Use Business Reply Mail to facilitate orders

86. Canada Post’s Solutions at Work
Strategy:
• Fulfill orders using a Canada Post Shipping &
Delivery solution (e.g. Expedited Parcel, Priority
Courier, Xpresspost, Purolator or Regular Parcel)
• Manage product returns using Canada Post’s
Merchandise Return Service (MRS)

87. How Canada Post Can Help You
Connect With Canadians
Your Canada Post International Sales Team can:
• Provide you with secondary demographic and
socio-economic research data about Canadians
– Statistics Canada
– Print Measurement Bureau
– AC Nielsen data
– Primary research conducted by Canada Post — including case
studies
• Assist with Market Entry Plans
• Offer a network of International Sales Managers

88. How Canada Post Can Help You
Connect With Canadians
Our network of International Sales Managers
will help you with suggestions on how to find
Canadian-based business partners:
• Mailing list brokers
• Lettershops
• Direct marketing agencies and consultants
• Printers and other suppliers

89. How Canada Post Can Help You
Connect With Canadians
Let us be your guides to navigating the waters:
• Consumer protection regulations
• Tax legislation
• Customs procedures

90. Conclusion
Concluding Thoughts
Contact Information
90

91. Concluding Thoughts
Most of Canada is within a 24-hour
trucking distance of the US.

92. Concluding Thoughts
80% of all Canadians live within
60 miles of the US border.

93. Concluding Thoughts
• Easy access. Close by.
• Barrier-free geography.
• And a friendly neighbor.

94. Concluding Thoughts
Canadian DM response rates tend
to be 25% higher than those in
the US.

95. Concluding Thoughts
Canadians enjoy dealing with
American organizations.

96. Concluding Thoughts
One-third of Canadians can be
reached in 3 major urban centers.

97. Concluding Thoughts
Price your product in Canadian
currency and offer fulfillment and
customer support services with a
Canadian flavor.

98. Concluding Thoughts
Canada Post ships more products
that have been ordered online
than any other Canadian shipper.

99. Concluding Thoughts
Direct Marketing is THE most
effective way to sell in Canada.

100. Concluding Thoughts
Canada Post.
From any US organization
to any customer in Canada.

101. Connecting With Canadians
For more information
please call 1-877-617-7780
or your Canada Post Account Executive
www.canadapost.ca
101