You are on page 1of 12

Contents

Introduction: ................................................................................................................................... 3 Problem statement: ...................................................................................................................... 3 Objectives: ................................................................................................................................. 3 1. Brand Assessment................................................................................................................ 3 1.1) What are the brand attributes of Canada Goose ..................................................... 4

Brand specific Attributes: ..................................................................................................... 4 Intrinsic Brand Analysis: ...................................................................................................... 4 1.2) what is the main appeal and differentiation of the brand. ........................................... 4 Differentiation ............................................................................................................................ 4 1.3) Does the experience for men differ from the experience for women? How? .......... 5 2. OPTIONS FOR GROWTH........................................................................................................... 5 2.1)As Dani Reiss, what would be your decision about the offers from Levines Menswear & Asmuns Place? Would you accept one, both or none? What factors helped you to make this decision? What factors made your decision difficult .................................................................. 5 Asmuns offer: ........................................................................................................................... 5 Pros:........................................................................................................................................ 6 Cons:....................................................................................................................................... 6 Levines Offer: ........................................................................................................................... 6 Pros:............................................................................................................................................ 6 Cons:....................................................................................................................................... 7 Recommendation: Asmun Offer ............................................................................................. 7 Pros:........................................................................................................................................ 7 Cons:....................................................................................................................................... 7

2.2 Are there any other expansion opportunities for Canada Goose? Discuss any other potential distribution and/or product development strategies, and assess the resources required as well as the associated risks for your recommended option(s). ............................... 8 Growth Areas: ........................................................................................................................... 8 3. Managing growth .................................................................................................................. 9 3.1) How should the company manage potential channel conflicts ........................................... 9 3.2) How can the company manage its brand image against the retailers promotional decisions ...................................................................................................................................... 9 3.3) what should the company do about any potential dissatisfaction from its current customers. ................................................................................................................................. 10 Appendices: ................................................................................................................................. 11 SWOT analysis of both retailers: .............................................................................................. 11 Asmun: ......................................................................................................................................... 11 Levine ....................................................................................................................................... 11

Canada Goose:
Introduction:
Canada goose is an apparel manufacturing and producing company which specializes in providing best suited outer wear for winter season. Their products are synonymous with performance and style. Their strategy is focused towards providing customers with well made winter wear that are suitable in extreme weathers with the aspect of style and fashion sense that will create a niche market for Canada goose. Their marketing and distribution channels are currently under limited scope. The organization head is more concerned towards building product performance through research and development by reducing its marketing expenses to minimum. Their marketing covers only sponsorship programs and certain public relation aspect. This gives them the opportunity to input the cost savings into product development and also enables the product to limit itself from over exposure and exhibit itself as a premium category product limited to a certain group of consumers.

Problem statement:
The issue that Canada goose is currently facing is the possible areas of growth in terms of increasing their expansion through different retailers. The Asmun presents the opportunity to feature women wear, Levines offered Reiss to feature their line in men exclusive retails. These possible areas of expansion also pose threat to current channels which are small independent stores.

Objectives:
The option to consider new distribution channel lies in selecting the medium that best deliver the organization value and are in synced with the brand image, value and organizations strategy.

1. Brand Assessment

1.1) What are the brand attributes of Canada Goose


In order to assess the brand attribute, detailed product specific analyses as well as intrinsic brand attributes have to be assessed. These attributes together form the image of the brand that distinguishes Canada goose from its competitors. Canada goose has certain positive point that serve as its ability to maintain a higher position in the market. Also few of its strategic actions are impacting the brands performance and visibility which has been discussed. Brand specific Attributes: Their product functionality is their prime strength which gives them an edge over others in extreme winter conditions. The product is manufactured with specialized raw materials which remain their unique selling point as none of the competitors in the industry are utilizing natural furs. The Made in Canada factor remains one of the prime factor of its high market value as none of the competitors manufacture their products in Canada or procure their raw materials such as furs from Canadian fur traders as Canada goose does. The premium pricing is the factor that has enabled as cost recovery and also serves as positioning factor. Along with their premium pricing, less inclination towards mass marketing and promotion has also made their positioning as market cost leader. Intrinsic Brand Analysis: The product is considered as limited to few chosen ones which enhances its image of premium product. The style and design serves as a fashion statement for the consumers which not only works on functionality aspect but also delivers a high end brand notion.

1.2) what is the main appeal and differentiation of the brand. Differentiation
There are few factors that serve as differentiation point for Canada goose. These factors are both on functional aspect as well as visual aspect. The main differentiation point that Canada goose garments specifically jackets have are their usage of down feathers. These down feathers which are natural furs as opposed to

synthetic materials which bear strong unwanted odor, create insulation inside the jacket which enables individuals to remain warm even in extreme climates of these regions. This fulfills the functionality aspect of the product which is the simple feature of providing warmth. In order to create a perceived image of high brand management place high importance to the outlook of the apparels. Style and design of Canada goose are the main fashion aesthetics that the product is known for. Coupled with its premium band positioning, these entire features enable Canada goose to remain a highly differentiated product from its competitor.

1.3) Does the experience for men differ from the experience for women? How?
There exists a difference in both the gender in terms of buying behavior and their experience towards brands. Women tend to focus particularly on the outlook with selected cuts and style that they prefer which translates into the fact that management has a limited scope to operate on their own choices. However men are particular over the functionality as well as aesthetics and are easily accustom to various styles and designs as long as they create a sense of fashion in general.

2. OPTIONS FOR GROWTH

2.1)As Dani Reiss, what would be your decision about the offers from Levines Menswear & Asmuns Place? Would you accept one, both or none? What factors helped you to make this decision? What factors made your decision difficult
The options of considering potential offers from both the retailers are to be judged on their coherency with the Canada goose organizational strategy as well as their long term growth potential.

Asmuns offer:
Asmun presented the option to consider women only line currently. They have a century old presence in the market as being one of the most prestigious fashion brands retailers.

Pros: Market position: The current market position of Asmun among consumers is very high as it is known for its specialty in high en fashion brands. Location: It is currently operating 10 retail stores throughout Canada typically in large shopping complexes and upscale areas. Introduction of Men lines through one day exhibition programs: Asmun are willing to trial the men specific product through their one day exhibition programs in order to observe the market response of the consumers. Cons: Limitation on number of styles: It will currently feature only three to five styles of women jackets and will further increase as and when demand pattern continues. Promotional campaigns: The marketing and promotional campaigns of Asmun is not aligned with that of Canada goose as Asmun will feature their jackets in the publication sent to the customer as a part of their loyalty program.

Levines Offer:
Levine is a men specific store offering to feature line of Canada goose in their store as a part of their continuous product. Pros: Varied number of styles: Levine offered to present a variety of styles as opposed to Asmuns restriction of three to five specific designs only. They are offering a chance to feature 10 styles initially at their stores. Affluent male target market: Levine presents an affluent male target market that is not price sensitive and therefore presents a great opportunity to present high end brands.

Cons: Highly distributed chain: They are present in market for 50 years and are already present on 20 locations with future prospects of 40 chains in Canada. This level of distribution will result in mass availability and hence a diffusion of brand image in consumer perception. Operating Cost: Levine offered to hire a dedicated sales representative to Canada goose however the cost of having it far exceeds the benefits gains through it. Men-only represent limited growth: Men only store represent a growth in a selected line of Canada goose at the expense of other lines.

Recommendation: Asmun Offer


There can be several possible growth plans. Firstly, accept any of the retailer offers, secondly, to pursue with both the retailer and lastly to discontinue the existing channels and pursue with newer ones. It is recommended that Reiss opts for selecting Asmuns offer as well as continue with their previous small independent retailers. Pros: In selecting Asmun, it represents a long term growth opportunity in including both gender lines in future which is an important element lacking in Levines offer. Another important aspect is the long history of Asmuns in providing higher customer services to high end consumers through selected outlets as opposed to Levines who has an aggressive growth strategy which may result in diluting Canada goose brand. Financial factor is also important as Asmun will maintain 100% markup to Canada goose products and will be the reason for 5% increase in market share of their product. Cons: The only disintegration of the brand strategy to that of Asmun is their promotional and marketing strategy. Asmun utilizes the promotional marketing campaign in order to create loyalty programs for their valued customers in which they feature the brands

Asmun currently stocks at their retails. This is a major disintegration which may cause a potential hurdle in creating a growth expansion in direction of Asmuns. Factors that enabled selecting the particular option were the key alignments of the strategic actions of Asmuns. Financial objectives are easily achieved by the growth of 5% market share in opting for Asmun, the cost saving of other overhead operating cost is also evident in this option. The growth and expansion plans of both the Canada goose as well as Asmun are coherent which creates a sense of mutual gain for both the parties. However factors like Levines offer of including men wear which bears a higher price point for consumer has remained a difficult option to exclude due to its immediate results on financial gains. Another factor that made the decision difficult is the non alignment of marketing and promotional activities of Asmun to Canada goose jackets.

2.2 Are there any other expansion opportunities for Canada Goose? Discuss any other potential distribution and/or product development strategies, and assess the resources required as well as the associated risks for your recommended option(s). Growth Areas:
There are certain other possible expansion arenas that can prove to be worthwhile for Canada Goose. One of the potential areas is their expansion to North American and European states through national level retailers who have a high brand value in their respective regions. This will enable to create a regional level premium brand and will also enable Reiss to have more brand mileage in terms of utilizing their premium product offering and the perceived brand value. This can be possible by selecting an intensive distribution channel that is comprised of retailers and individual distributors that will enable thorough distribution of products all over the region. The prime risk involved in it are the management of the brand and fighting against counterfeit products that are the major hurdle in creating a market for the genuine Canada goose jacket market.

3. Managing growth
In order to implement the growth strategy certain measures have to be taken. The new expansion plans calls for more space in warehouse in order to fulfill the raised demands, this is provided by the current warehouse as it can bear any expansion therefore there is no immediate need for setting up new warehouse for product storage. However as the products will be stocked at different location of country the need of distribution channel has been identified. In the current scenario, indirect distribution channel will be pursued as the product will be offered through Asmun and they will be required to deal with end consumers. The distribution channel breadth is selective distribution as it will strike the balance between market saturation and product absence. A total of 10 stores are going to place Canada goose products in the country which fulfills the corporate plans in terms of its growth strategy. A blueprint of distribution channel chain can be observed in exhibit 3.

3.1) How should the company manage potential channel conflicts


A balance of power is required in order to prevent channel conflicts. Since expansion requires inclusion of different levels of distributors in order to maintain effective availability to the new stores it is evident that power of balance may be shifted from one end to another. In order to prevent it, negotiation and communication is the essential tool to manage any conflicts arising in between the intermediaries. Proper layout of desired activities and goals should be stated and conformed to a periodical review in order to assess the position of intermediaries in distribution channel. This will prevent any potential channel conflict in expansion phase.

3.2) How can the company manage its brand image against the retailers promotional decisions
Brand image of Canada goose is at stake at the promotional activities of Asmun. The disintegration of this major activity needs to be aligned from both the end in order to create a positive operating environment. Asmun can be offered to restrict promotional material to the subject of Canada goose publications which can further be utilized by

them. Another possible solution could be limitation to frequency of the featuring of Canada goose jackets in their promotional material. This will enable Asmun to completely acknowledge their customers about the products they feature as well as strike a balance between Canada gooses marketing strategies.

3.3) what should the company do about any potential dissatisfaction from its current customers.
Potential dissatisfaction is evident in Canada goose expansion phase as it was previously restricted to small independent stores only which do not operate on the same scale as that of Asmuns. In order to tackle any upcoming issues, a contract can be formed which include the certain product and quantity for future orders to these previous retailers on mutual terms and conditions which will resolve discontentment from the previous B2B customers. Also, end consumes will also be impacted from the new distribution channel as the product availability would be increased due to the new expansion phase. In order to prevent any discomfort to end consumers from the latest change in strategies marketing communication can play a vital role in reaching to these consumers by indicating them the early adapters of the high end fashion brand and being the market leaders in consumption of the product. This marketing communication will enable previous customers to feel superior over other customers as they were the early adapters of the premium product jackets.

Appendices:

SWOT analysis of both retailers:

Asmun:
Strengths Weaknesses They dont carry a mens line at this point

Maintains the brands luxury Image 5% increase in sales Well known as an affluent luxury store Opportunities Threats - Expands Canada Goose location to Misalignment of marketing and 10 high end stores promotional campaign - Potential to expand into mens line in the future

Levine
Strengths Weaknesses Limited scope of men only products Well known men retailer history in less resulting in expansion in single line period of time only Affluent target market of consumers High cost involved in terms of having with less price sensitivity dedicated sales rep

Opportunities Threats Men only provide chances of serving to male dominant consumers that Highly aggressive growth plans that have high price point than female are misaligned with that of Canada consumer products. Goose

Exhibit 3:

Canada Goose

indirect Distribution through Asmun (Retailer)

indirect distribution through independent stores

distributor

store 1

store 2

consumers

retailer

retailer

consumer

consumer

consumer

consumer