Before entering the Canadian market through a strategic alliance, Sanjo must calculate and plan all the key costs tied to launching its products successfully. Financial planning is essential to ensure that the investment is sustainable and that the partnership with the local company is profitable from the start (FasterCapital, 2024).

Legal and Consulting Fees To draft and review legal contracts for the strategic alliance, as well as to ensure regulatory compliance in Canada, Sanjo will need to hire legal advisors and consultants. This cost can range between CAD 10,000 and CAD 25,000 depending on the complexity of the agreement and required provincial registrations (Canada Business Network, 2024).

Branding and Local Marketing Sanjo will also invest in branding and marketing tailored to the Canadian market. This includes digital ads, influencer collaborations, and in-store materials. For a mid-sized campaign in major cities like Toronto or Vancouver, Sanjo should allocate around CAD 20,000 to CAD 30,000 in the first year (Statista, 2024).

Product Adaptation To comply with regulations in bilingual provinces such as Quebec, Sanjo will need to update packaging and labelling to include both English and French. This adaptation may also require localization of promotional materials. Estimated cost: CAD 5,000 to CAD 7,000 (Government of Quebec, 2024).

Training the Local Partner A portion of the initial investment will be used to train the Canadian partner’s staff on Sanjo’s brand values, product knowledge, and customer service standards. This can include virtual workshops, printed training manuals, or even an on-site visit. Estimated cost: CAD 3,000 to CAD 5,000 (Deloitte, 2023).

Logistics and Shipping Shipping products from Portugal to Canada will be a recurring cost, but the initial shipments—especially if done in bulk—will incur higher logistics and customs duties. While CETA (the EU–Canada trade agreement) reduces some import duties, items may still be subject to GST/HST and excise tax depending on the province (CBSA, 2024). Total estimated shipping and customs costs: CAD 10,000 to CAD 15,000 for the first batch.