Canada Goose Inc. is a company who devote itself to luxury sport jacket industry. It is famous for style and functionality product. Over 150 independent retail stores has been owned with the standard expand consecutively. The products have been placed in a lot of countries except two authorized dealers. Dani Reiss, the president of Canada Goose, is pleased with sales and brand popularity. He decides to grasp the opportunity to strive for better development. The North Face as an American outerwear company is the main competitor of Canada Goose among many premium jacket market. Reiss received two distribution .One offer from high-end national chains, Asmuns Place, a leading fashion specialty store for both women and men’s product. The other one is from Levine’s Menswear which known for professional service and high-quality men’s fashion. However, Reiss should decide whether the two offers are on the same league of his objective of maintaining Canada Goose’s brand image. Cooperating with nation chains has lead to concerns of Westbrook’s Downtown. The other independently retailers fear they will not keep up with large national chains when they face to heavily discount.
Dani Reiss as the president of Canada Goose should make a decision about the future development of company. There are three challenges he should face during the process of shifting from small independent distributors to large national chains. Firstly, although distributing through national chains outcomes in increased sales for Canada Goose, wherein bear the risk of diluting the premium brand image which has been built up over the years. Secondly, Cooperating with Asmuns Place or Levine’s Menswear is a threat to small shop when experience the discount. Thirdly, Canada Goose lack of cooperating experience with retail chain. He has to consider building a more influential brand and expand the company by choosing the cooperative retail company using pricing, place, product, and promotion strategy. Decision-making should be forward-looking in a limit time. Situation analysis
Canada Goose is a company that set up in 1957, focusing on style and functionality during the cold and extreme weather condition throughout North America and Europe by retail store and online sale. Brand prestige is concerned as the most important to Canada Goose by president. It makes premium product while keeping low-key profile. For a better development of future, Dani keeps eye on long-term growth opportunity. The offer he received should be taken consideration of whether the two strategies are fit. Objective
Increase awareness of brand
Maintain customer loyalty
Provide high-quality product to customers
Expand the company properly
Fight for knockoff
Canada goose is a Well-known brand. It represents quality and status. A famous brand can get more opportunities to get involved in higher level market and defined as high-end product. The product displays in more stores in numerous counties.
Canada goose uses nature product compares with synthetic material used by some of their competitors. Product emphasizes style and functionality.
Canada goose is becoming a culture and heritage of Canada.
Canada goose have relatively low price than extremely fashionable product.
Canada Goose has limited kinds of product.
The price can only afford by affluent people.
Asmuns Place and Levine’s Menswear as powerful and influential large national retailer both provide long-term contract with Canada goose. With the increase knowledge of brand image, it is the chance to change distribution pattern from small independent store to large national chains. Threats:
There are a lot of competitors in the market who produce premium winter jacket. Counterfeiting which can damage the brand reputation is pervasive. Canada Goose cannot prevent the product from heavily discounting when retailer partners decide to lower the price. It is difficult for Canada goose to sell a product without a track record of sales. Implications
Canada Goose had laid a solid foundation of brand popularity while keeping the sustained and steady growth. It has successfully developed a large number of loyal customers based on consistent premium products. The most important is the cooperation with either company could be the inflection point to Canada Goose. Market Analysis
Place| Independent storesOnline|
Product| Menswear Constable, Chilliwack, Expendition,Nomad, Heli-Arctic, Voyager, Snow Mantra | WomenswearChilliwack,Porter, Expendition, Solaris, Mystique, Trillium, Voyager|
Promotion| Word-of-mouth advertisingProduct placement and sponsorship
There are numerous premium winter jackets in the market.
The type of customer is extensive from 16 years old to 64 years old. People who buy Canada Goose’s product rarely consider cost. The North Face is a strong competitor to Canada Goose.
The behavior of retailer such as heavily discounting to stimulate market sometimes has a negative aspect to Canada Goose’s brand. Canada Goose is an environmentally friendly company. All products from Canada Goose are marked up 100 percent when selling at retail store. Canada Goose ‘s product are sold online through authorized retailers and independent stores across Canada via customers as Westbrook Downtown. Competition
Extremely fashionable jackets| Low price jackets|
Strength| Fashion| Functional| Weakness| High price| Less fashionable and exclusive product|
The North Face| American outerwear company |
Popularity| Style and Functionality|
Product| Extensive than Canada goose. (Men’s jacket, Women’s jacket, hat, gloves, footwear, bottom-wear and outdoor hiking equipment)| Distribution channel| Internet and stores|
Place| Metropolitan in United States|
Scale| 24 retail stores across the United Statesno retail store located in Canada except outdoor stores| Price| $100-$1000|
Although the competition is fierce, The North Face is the main competitor to Canada Goose. They both focus on function and style, thereby the product of two companies will similar. Distribution channel of both Canada Goose and The North Face are through Internet and stores. Metropolitan is the place where the two company desire to development. The difference is The North Face own more extensive product than Canada Goose. It means the product line is larger , thereby the choice for customers are more than Canada Goose. The North Face has a considerable retail store scale across the United States. On the contrary, in Canada, which is Canada Goose’s main market, The North Face has no retail store in addition to outdoor stores. By comparing The North Face and Canada Goose, there is no enormous distinction on the sales model and orientation. It is necessary to expand market by cooperating with national chains retailer in order to developing better. The north Face
The north Face
Other jacket companies
Other jacket companies
| Athletic Legends Sportswear| Asmuns Place| Levine’s Menswear| Who|
Affluent adult| Affluent adult women and men| Affluent adult men| What| High-quality product| High-end product| Professional service and high quality men’s fashion product(formal clothing)| Where| Independent storesOnline| Large shopping malls and upscale retail complex | Upscale men’s shopping store| HowWord-of-mouth advertisingProduct placement and sponsorship| Store’s print advertisement| advertisement|
Key Success factor
* High quality warranty
* Convenient purchase mode
* Competitive price
* Awareness of building strong brand
* Competitor reaction
* Customer awareness
Analysis of Alternatives
1 Status quo pros: The cooperation with previous retailer partner will continue. It can avoid the overexpansion which leading to lower brand value. Loyal customer as Westbrook’s Downtown and other partner will retain. They have gotten more experience compares to cooperate with new company. Cons: Canada Goose will lost the opportunity to broaden the market.
2. Cooperate with Asmuns Place
Pros: There is no doubt Asmuns Place means the high-end product with long-term growth oppotunity. Asmuns Place is the fashion leader and have many loyalty customers. It can enlarge the influential of the brand of Canada Goose at upscale product. They promise an excellent sales features. What is more, Asmuns Place guarantees a move that Men’s product could be in their stores which can make sure Men’s product of Canada Goose can have a better place to sell. Cons: The limited order and promotion. Asmuns Place will print the advertise of Canada Goose’s product to loyal customer that is violate Canada Goose’s consistent low-key and word-by-mouth. Customer could classify Canada Goose with other kind of product. People will ignore the brand of Canada Goose to some extent. With Asmuns Place’s new strategy which is exclusive with Canada Goose for men’s product will jeopardize the relationship with Levine’s Menswear. 3. Cooperate with Levine’s Menswear
pros: Levine’s Menswear bing a good opportunity to take Canada Goose to a new high height. Large and flexible jacket styles are allowed. It leaves customer a professional service and high-quality impression. Cooperate with Levine’s Menswear can increase impact of affluent adult males. Price is not the concern because people who shop in Levine’s Menswear care cost factors less. Canada Goose can give full scope to high-quality superiority. cons: Only Men’s product are required. Canada Goose should hire a sales representative to help run the cooperation well by dealing with exclusively strategies. Limited cooperative experience with national chain made Canada Goose fall into a passive position. Salary paid to sales representative of Levine’s Menswear is much high than internal sales representative.
That unfair salary distribution may lead to negative emotion of employee. 4 cooperate with both Asmuns palace and Levine’s Menswear prons: Asmuns is glory of Women’s and Men’s product. Levien’s Menswear is famous for premium’s product. To combine the advantages together is to cooperate women’s product with Asmuns Place and cooperate Men’s product with Levine’s Menswear. Cons: Asmuns Place has clarified they would like to move to Men’s products. It means cooperate with Levine’s Menswear must lose the opportunity to get better partnership with Asmuns Place. Recommendation
Cooperate with Assume Place is the best plan. It can help Canada Goose building a strong impression and provide better retail service for customers. Canada Goose can get better profit when selling at higher price .100 percent mark up price and 5 percent expense to Asmuns Place can make a substantial profit. Although the order of women’s products is limited, Canada Goose’s superiority is quality goods. With the sales increase, Asmuns Place may consider enlarging the order. Cooperate with one company can make a better wholeness strategy. Cost will be cut down to some extent. The objective is to properly increase profit and improve brand’s value. Through cooperating with influential and powerful retail chain company can lower risk when consider the price segment and service segment. The only one need to be taken more consideration is advertise means and promotion strategy used by Asmuns Place. Compares to the shortage of Asmuns Place, the advantage occupies more portion. Canada Goose can reduce the risk by negotiating with executive of Asmuns Place. Understanding partner’s concept of promotion and company culture is the basic condition. Women and Man tend to indulge in fashion product. Asmuns Place as the synonyms of fashion can increase Canada Goose’s consumer groups.
1. Negotiating with executive of Asmuns Place
Common strategy makes a uniform cooperation. The plan making should be designed during the cooperation. The type of produce is based on the order of Asmuns Place. The future order-increasing and brand value awareness is important to align together. 2. Sales Representative training
It is the first for Canada Goose to be partner with nation chains. It faces to the problem of lacking experience. The training of sales representative can boost cooperation efficiency and accuracy. Sales representative will deal with the problem with two companies that will facilitate both Canada Goose and Asmuns Place. 3. Sales Feedback of Asmuns Place
It usually gets problem during the cooperation, thereby the in-time feedback is extremely important. When the problem occurs, feedback can help make up leak and ameliorate strategy.
Canada Goose could confine and monitor Asmuns Place’s promotion method. The contradiction should happen if Asmuns Place does not recognize the brand value development strategy of Canada Goose.