Professional Documents
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TRSB Case Study
TRSB Case Study
TRSB Case Study
Issue 2
June 2017
HEC165
TRSB was able to achieve this growth by developing solid expertise in Quebec’s business
community and building a client roster comprised solely of large and very large Canadian
companies active in the financial, banking, pharmaceutical, insurance, and technical fields. 6 All of
TRSB’s clients have several things in common: their brand image is paramount, they operate in
highly regulated industries, and their communications must be flawless.
In 2016, TRSB was ranked among the largest translation companies in North America. For the
second consecutive year, the company was named Canada’s largest language service provider by
independent market research firm Common Sense Advisory. TRSB offers a comprehensive suite of
services, including customized translation and terminology management solutions. Following a
complete internal reorganization, TRSB adopted the best practices, tools, and technology systems
to successfully compete with increasingly fierce international competition. Workflows were
reviewed and project coordinator and associate director positions were created to streamline request
handling, mobilize staff, and optimize work processes. TRSB is now ready to join the big leagues.
1 Translation from the French of case #9 10 2017 002A “TRSB (A): Renforcer sa marque de services en situation de marketing
d’affaires (B2B).”
2
Real case study based on three sources: an interview conducted with Serge Bélair, founder, and Esther Légaré, director of operations;
internal administrative documents; and public sources.
3 Normand Turgeon is a professor in the Department of Marketing at HEC Montréal.
4 Alexis Lavoie is a consultant at Lavron Solutions.
5 Julien Bergeron St-Onge is a consultant at Lavron Solutions.
6 Samuel Larochelle, “Le Canada, un important marché”, La Presse, September 23, 2014 (page consulted on November 3, 2016).
© HEC Montréal 2017
All rights reserved for all countries. Any translation or alteration in any form whatsoever is prohibited.
The International Journal of Case Studies in Management is published on-line (http://www.hec.ca/en/case_centre/ijcsm/), ISSN 1911-2599.
This case is intended to be used as the framework for an educational discussion and does not imply any judgement on the
administrative situation presented. Deposited under number 9 10 2017 002AT with the HEC Montréal Case Centre, 3000, chemin
de la Côte-Sainte-Catherine, Montréal (Québec) H3T 2A7 Canada.
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
In 1977, the passing of Bill 101 1 and the creation of the Office québécois de la langue française
(originally the French Language Bureau) established the pre-eminence of the French language in
Quebec. A few years later, the province’s first referendum confirmed the development of
Quebec’s identity as a society that strongly values local culture and the French language.
In 2015, Quebec’s translation market generated sales of nearly US$2 billion, or almost 8% of
global production, valued at US$38.2 billion. Quebec translation companies accounted for 50%
of all translation done in Canada: 70% from English to French and almost 30% from French to
English. 2 Eighty percent of translations were done for the Quebec market. Although Canada was
home to just 0.45% of the world’s population, it commanded a 10% share of the global
translation market.
According to Statistics Canada, consulting firm PricewaterhouseCoopers, and the Les Affaires
newspaper, the translation industry was booming, growing at an annual rate of 7.41%. 3 TRSB’s
management team realized the vast potential for business development in its sector, but was also
aware of many existing and potential threats, some of which would have to be mitigated to
minimize their impact.
Computer-aided translation (CAT) is part of a new paradigm emerging in the translation industry.
Some CAT tools are more sophisticated than others, but all offer two basic features:
• retrieval of previously translated content (translation memory)
• access to terminology data banks
Major corporations generate masses of documents, their content often being used for a variety of
different purposes. The same promotional text, for example, might be used in client brochures,
sales rep sell sheets, and the corporate website. Even more commonly, excerpts of a text might be
1 The Charter of the French Language (commonly referred to as Bill 101) is a law that sets out the fundamental French language
rights of all Quebec residents and establishes French as the province’s official language and thus the official language of
legislation, justice, government, para-public agencies, work, commerce, business, and education.
2 Larochelle, op. cit.
3 Claudine Hébert, “Les firmes de traduction misent sur le service-conseil”, Les Affaires, May 11, 2013, (page consulted on
November 3, 2016).
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
reused for different purposes, or sections of several different documents might be combined to
create a whole new text.
Sooner or later, most of these documents are translated. Since clients don’t wish to pay full price
for previously translated content, this is where CAT tools come in handy. CAT tools incorporate
what is called “translation memory” – a database of all content in both the original, or source,
language and the target language. When a CAT tool processes a document, it calculates the
number of previously translated words, extracts previously translated sentences or paragraphs
from its memory, and incorporates them into the translated text in the appropriate places. The use
of CAT tools offers clients several benefits, including terminological consistency, something that
is especially important in specialized fields. They also enable both translators and translation
agencies to realize efficiency and productivity gains.
Major international firms are entering the Canadian market by undercutting the prices of local
language-service providers. Large companies such as SDL, TransPerfect, RR Donnelley, and
Lionbridge have adopted this approach with some success. While these companies are not known
for the quality of their work, price is often a differentiating factor in the translation industry.
Developing a new rate structure is one of the challenges facing local translation businesses,
whose prices are higher than those charged by international competitors.
Many firms in other sectors are also adding document translation to their service offer. Law
firms, auditors, and communication agencies have realized that Canada is the El Dorado of
translation. In Canada, higher rates can be charged for translation, companies must communicate
with their clients and employees in French, and local firms approach these service providers
directly, knowing that French/English translations can help them reach a wider market.
Emerging countries are now also offering translation services at reduced prices. Chinese
companies, for example, are now undercutting competitors with a rate of just $0.05 a word, 1
much lower than that charged by major international firms. This aggressive approach to breaking
into the market is seen by some established translation companies as a potentially serious threat.
Some companies that opted for a business model including an in-house translation department
were faced with soaring operating costs. The necessary investments in infrastructure and
equipment along with high labour costs drove them to rethink this approach. The early 2000s thus
saw a shift to outsourcing as companies in Quebec and elsewhere began closing their translation
departments and turning to translation agencies. In this way, they avoided fixed expenditures and
initial investments and paid only for the translation work actually done. Some companies adopted
a variation of this strategy: for an unspecified period, rather than send all their outsourced work to
a single firm, they sent it to two or three suppliers on a trial basis to rate their performance. While
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
the major international players remained in the running because of their aggressive pricing, they
were often sidelined by quality issues. Outsourcing enabled companies to focus on their core
business. Moreover, in-house translation departments were struggling to keep up with the latest
technology and best practices, something translation agencies must do to remain competitive.
Companies such as Google, Microsoft, and Skype are developing translation software. One of
their strategic objectives is to push the limits of the technologies they develop. The steady
emergence of complex new tools is indicative of the major boom and technological shift now
being felt in the translation industry. As reported by CNN Money, Google Translate now covers
over 100 languages. 1 These major players are carving out a niche in the industry, and their
innovations appear promising. Might this herald possible consolidation in the translation
industry? Or does it signal potential disruption caused by progress in the field of artificial
intelligence?
Canada’s unique situation as an officially bilingual country (French/English) means that players
in different fields must translate a wide range of documents. The demand for translation services
has increased, with economic data showing strong industry growth. Over the past thirty years,
many Quebec-based translation agencies have in fact posted explosive growth.
We are nevertheless seeing a huge upheaval linked to the development of new technological tools
along with new types of service and pricing structures. Some serious questions must be answered.
Should human and technological capital be better paired? Should Quebec translation companies
seek to gain a decisive competitive advantage over these new players by developing and using the
most sophisticated translation tools? Will high-quality, customized translation become a luxury
that only major mature companies can afford and be willing to pay for?
The arrival of several large multinational players in the Canadian market is also making it
difficult for local companies to position themselves. Some industry pundits, including Réal
Paquette, president of Quebec’s association of translators, terminologists, and interpreters
(OTTIAQ), and Jill Krasny, a U.S. economic journalist, suggest that translation companies
should completely reinvent themselves as communication firms focused on developing their
clients’ brand through the optimal use of translation software. 2
1 Alanna Petroff, “Google Translate now covers 103 languages”, CNN Money, February 18, 2016 (page consulted on
November 3, 2016).
2 Jill Krasny, “Lost in Translation? There’s a whole industry to help”, Inc.Com, March 25, 2014 (page consulted on November 3,
2016).
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
clients’ brands, ideas, and concepts, developing messages adapted to their specific needs.
Companies that have chosen this route have revised their business model, adding services such as
consulting, digital media services, and local content management. They have positioned
themselves as partners, helping their clients develop a distinct identity to efficiently reach
Quebecers, who are particularly demanding when it comes to the French language. Positioning
itself within this new context, TRSB continues to focus mainly on offering French/English
translation services.
Adapt or Perish!
As noted by Darwin in his theory of evolution, a species can only hope to survive and then thrive
in the face of a threat by adapting. Darwin’s theory can be applied to many Quebec and Canadian
translation companies. In all cases, if they wish to grow, they must adapt.
TRSB would therefore have to embrace change. Bélair understood that his company would have
to evolve, differentiate itself from its competitors, and skilfully adapt to its new business
environment. He and the company’s senior management team agreed that the company would
need a good marketing strategy if it was to maintain its momentum and the 20% annual growth
rate it had enjoyed for the past five years.
In late 2014, TRSB decided to build an internal marketing communications team. Up until then,
the company had never developed a formal marketing strategy. Most of TRSB’s clients had
learned about the company through word-of-mouth advertising based on its spotless reputation.
The marketing communications team joined the business development team created in 2012. Its
role was to support the sales team and business development experts through marketing
communications designed to deal with the company’s new business environment.
The company then identified key communication and differentiation areas on which to base its
added value offer to clients. The company had clearly organized its business activities around a
translation process focused on excellence, exclusive customer relationships, and meeting client
specifications (see Exhibit 2). 1
With an annual marketing budget of nearly $100,000 (see Exhibit 3), TRSB participates in
various professional events to increase its visibility in target markets. It attended the APEX
Leadership Conference as the event’s official translation sponsor, for example. TRSB is also the
official translation services provider of the Investment Funds Institute of Canada, is an affiliated
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
TRSB continues to buy advertising space in a few financial magazines and occasionally in
translation industry publications. The company’s PR efforts have paid off, in particular with a
lengthy interview with Serge Bélair on the translation industry appearing in the Le Devoir
French-language newspaper. With its brand image now clearly defined, what does the future hold
for TRSB?
Bélair believes that professional service brands will play a crucial role in the growth of B2B
service companies in the coming years. This is the challenge his business development and
marketing team will be tackling now: strengthening the new TRSB brand in its target market.
Team members have been advised that they will be receiving a number of questions. As usual,
their task is to produce a document reflecting their understanding of the challenge facing the
company. One of the questions will concern the breakdown of the marketing mix of a service
company such as TRSB. Another will likely focus on the importance of branding for this type of
business and the steps to be taken by TRSB. At least this is what the team leader expects.
2017-03-09
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
Exhibit 1
TRSB’s Organizational Chart
Business Development
Finance/Accounting team (5) Operations team (6) IT* and CAT** team (8)
and Marketing team (4)
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
Exhibit 2
TRSB’s Business Model – 2014
• Senior managers
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TRSB (A): Strengthening a Service Brand in Business-to-Business (B2B) Marketing
Exhibit 3
2016 Marketing Budget
Activities Budget
Sponsorships $15,000
Networking $5,000
Total $97,500
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