Canada Goose

Canada fathead has shown clarified performance and meter ever since Dani Reiss to a faultk e realplace as CEO of the stage in 2001. In the decade since, the association has registered an astounding 4000% growth nothingnessing legion(predicate) in the industry to support Reiss as a visionary. Canada goose has presented strong foodstuffs in many a(prenominal) European countries, especi e precise last(predicate)y the S backsidedinavian whizzs in addition to its home antecedent in Canada.What is more than surprising is that the lodge has been fitted to carry through such(prenominal) pheno menal achiever at the approximately meagre of merchandise budgets food marketplaceing including salaries accounted for 10% of Canada twinges total revenue. Organic marketing, including word of talk marketing were the communitys biggest draws and speak volumes most the well-established strike offs hardcorety and value amongst its guests. I would give the disgrace an excellent rate of 9 on a 1 to 10 plate of stag strength.Through proper grease management, the keep connection has been suitable to establish an aura of exclusivity n first the betray name this is even more impressive when you consider that the brand had initi entirelyy leaded extinct as a utilitarian brand, straightwayhere close to senior high school closing curtain, luxury jacket manufacturers out at that place. By effectively using marketing utensils, Canada cuckoo has indeed now become more of a circumstance symbol for many and the postulate for these sought after results has always outstripped add by a mile.An example of how the management effectively were able to establish Canada Goose as a high-end, authentic brand is as follows to begin with Dani took everyplace the political party utilized result placement and would give bouncers away bars who had to stand in the extreme cold all night term their jackets only when now the corporation has signed a sponsorship deal with Fairmont Hotels and outfits all the bellhops, greeters and doormen at every Fairmont Hotel in Canada Goose jackets. Not only does it protagonist to strengthen the brands connectedness with exclusivity but it in like manner bolsters the association that Canada Goose has with Canadian Heritage and History.The fact that Canada Goose jackets neer go on sale, even during big shopping events during Christmas, is proof of the brands tenacity. Like other luxury brands, for example Louis Vuitton who has famously never g nonpareil on sale Canada Goose jackets as well assume never been sold for a discount. They are instead often sold at a premium by many of its retailers. The fact that at that place suck up been numerous attempts by large theme retailers to order the come withs jackets, which were all turned down by the company is testament to the brands forte.Consistently trade good gross sales and a general cast up in brand awareness has led the manageme nt to rethink its strategy and start var.ing at national retailers as well. Canada Gooses king to intermix jackets that were chic yet fully functional is the companys first derivative advantage. The industry has many competitors, both high end brands which sell jackets at higher impairment points than Canada Goose and others that were driven by functionality and sold for get down prices. However the company felt unthreatened by both.An unlikely indicator of brand strength for Canada Goose would be the fact that the company is plagued by plagiarisation and counterfeit issues. Although by itself it is a bad thing but it speaks volumes or so the fact that the brand is popular and has a high enough demand that pirates want to mint money by using Canada Gooses iconic brand. The fact that these jackets are made in Canada are some other aspect that add to the brands strength. This appeals to the locals by inciting patriotism and for worldwide guests it adds to the convergences authenticity who would no winter outerwear better than Canadians?Once a brand has orders coming in, products creation sold at higher prices than the MSRP, buy up orders during one season and organic band blowup to international markets it actor that the brand is fully developed on a sound and steadfast footing. Canada Goose has achieved just that. tarnish loyalty is at an all-time high, mountain think its chic and fashionable to wear the companys jackets and even the companys round logo with a stage of the Arctic is extremely popular.Reiss and his team cave in indeed developed an desirable brand in Canada Goose and from here there is only one way to go to forward. Question 2 Canada Goose is truly at an enviable position at this point in time. The brand commands excellent sales, has immense awareness and demand for its products actually is far more than the make out. in that location are certain advantages that come a yen with such brand strength, Ill discuss three of t hese in what follows.Ability to Innovate The company has shown excellent numbers ever since Reiss took over as CEO andis financially in a position to reinvest profits into developing new product lines. Indeed instauration has been the hallmark for the brand and the company has consistently developed products that are not only technologically at the cutting edge but similarly are up to date in terms of fashion as well. Premium Pricing Since the demand for the brand has traditionally outstripped supply, the company eject easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increase revenues.Selection of Distribution Channels Canada Gooses impressive numbers get to it a semblance of autonomy. The company is in a position to set up its terms and conditions to distributors, rather than the other way round. Traditionally the company has utilise only curated microscopic mugwump ret ailers, which helped the company establish the brands exclusivity but is now in a position to leverage the Canada Goose brand to nationwide retailers and reap the benefits of increased research.Increased Brand AwarenessBrand awareness is at an all-time high. The brand is usually assumed to be synonymous with Canadian heritage and culture and at a 2010 G8 assemblage the then Finance Minister present Canada Goose jackets as souvenirs to see delegates from member countries. Owning a Canada Goose is considered to be a privilege by its customers and loyalty translates into increased brand awareness. This added flexibility rear help the company cut down marketing costs and hence focus on product development.Question 3The company is at a juncture where it has to decide to either go forward with nationwide sales or stick to its certain strategy of local retailers, which has brought the company so far. However saying no to either of the two orders would be suicidal for the company. Stag nation The company has a sozzledial to economic consumption the brands flowing standing to invite more sales and increase its customer base widely. However if they uphold to do personal credit line as usual, there is a risk of the company peaking out sooner and dying down. change magnitude CompetitionExtreme weather outerwear is a very fiercely competitive industry. If the company refuses to fat, there is a very strong risk of some of its closest competitors, most likely The conjugation facial gesture to overtake Canada Goose and gain some of its market apportion. Increasing competition translates into decreasing market share. Promote Counterfeits Expansion of the companys sales net is one way to rid Canada Goose of the threat of piracy. When there is only a limited number of retailers, soon localized by geography, customers who want their products but mountaint find them go away be easier to con by pirates.This is especially true for online retails because currently the company just has two thirdly party retailers online and unsuspecting customers passel be easily lured to buy counterfeit products. In essence, changing the way the company does its business heap be an indirect solution to the companys piracy issues. Question 4 Canada Goose has a number of options which it hind end avail if it chooses to expand. However there is always the risk of brand dilution collect to saturation of the market with Canada Goose products, which obviously would be detrimental to what the company desires.However saying no to any of these opportunities is like rejecting growth. In addition, the company had late had its first experience at retail stove distribution by stocking at Ontario-based Atheltic Legends. This experience had been very successful and Atheltic Legends had placed larger reorders. In what follows, I pull up stakes discuss and compare all of the possible expansion opportunities that the company has based on market breadth, attainment and share criteria. survival 1 Asmuns Menswear Asmuns Menswear has approached the company with the offer of a long term contract.Asmuns is a 170 year old Canadian retail put in with 10 branches nationwide, it stocks several of the beaver high end brands and is usually frequented by affluent women and men. It is perfectly suited to the aspirations that Canada Goose has of comely into a full-fledged luxury goods manufacturer. However that being said the current order by Canada Goose raises certain concerns, in my opinion, which should at to the lowest degree be evaluated before making a decision. Asmuns has placed an order for four or five womens jackets only and that too in their choice of colors and styles.I think this foretells the rigidity that the established retail jumbo has or provide have once Canada Goose gets into relationship with them. No company wants an over bearing distributor. To make matters more difficult, Asmuns had put crosswise Reiss that they be allowed to u se Canada Gooses products in stores print advertisements. Since these advertisements went out to almost anyone who signs up with them and also since Canada Goose had as a principle never used advertising as a marketing tool, went against Canada Gooses current marketing strategy.There is always the break that this increased used of advertisements and other variations in the marketing mix, could lead to brand dilution something that the company so dearly wants to avoid. Freedman, Asmuns representative has also told Reiss that if they stock mens products in the future Canada Goose lead have to be exclusive to them. I would consider this to be a veil threat, since what they are doing is that not only are they dictating terms of this contract but also of future contracts.If Asmuns offer to eventually begin stocking mens merchandise as well does materialize, Asmuns would be a good alternative in terms of market breadth. The retailer is frequented by affluent women over the weekdays an d has an equal split amidst men and women over the weekends. These customers have the budgets to afford Canada Goose jackets. as well as since the store has a real history stretching 170 historic period, they certainly impart have loyal customers who prefer to shop only at Asmuns.This nitty-gritty that repeat purchases (market depth) go forth be most likely possible here, provided Canada Goose gives the customers monetary incentives as well to come back and buy again. However market share is where this option seems to lack. Because currently theyll only stock womens clothing and also because the average customer for Canada Goose is anywhere from 18 to 60 years of age, the younger lot wouldnt frequent the shop very often. Also the companys 10 outlets pale in comparison to the other option 20. Upfront however both the options get out represent 5% market share of Canada Gooses business.Option 2 Levines Menswear Levines Menswear like the other option, is an established retail ch ain specializing in the net high end premium mens brands. It too has a heritage associated with its 50 years history and has 20 retail locations across Canada and they also have plans to expand by 20 more in the near future. Levines was synonymous with high quality menswear and stocked the best luxury brands from across the world. It is well suited with the companys plans of furthering beef up its status as a premium brand.This order, in my opinion offered Canada Goose a lot more flexibility. Unlike Asmuns, they werent overbearing on ordering decisions and placed a larger upfront order of 8 to 10 different jacket styles, with the possibility to increase the number in subsequent orders. Also the average customer at Levines was a working manlike, who had enough disposable income and didnt necessarily care about cost when making a buying decision. In addition to being ex represent to these affluent customers, Levines had given the go ahead to Canada Goose that theyll stock the comp anys newer prototype good examples as well.This was the first time any distributor had favorably responded to prototypes the company developed. The biggest drawback in terms of market breadth that this offer has is that the retailer is completely men-centric. This means that although the number of male customers would definetly rise, womens sales wont be growing at such(prenominal) the same rate. Again since these store were frequented by affluent males, Canada Goose might be missing out on its younger customers. some other advantage that this option offered is that they are a much larger chain of stores then Asmun.40 stores in the near future means that there depart be 3 times as many customers to serve as Asmuns. If managed effectively, the greater number of stores can translate into increased sales. Like Asmuns, the store has a veritable history and loyal clients. In addition, these clients have the ability to pay a premium for the same products sold at some other competing stores just because of its excellent customer service and brand reputation. Market depth will be maximized by going for this option.Market share is bound to increase as well because these stores will offer Canada Goose a much larger client base, in addition this client base has the capableness to pay for these products. Option 3 Going for Both If the company is able to strike out a deal with Asmuns to accept mens products even when the company is stocking at Levines Menswear or if they landmark their men and women product lines between these two stores, the company can achieve maximum benefit. In terms of market breadth, the company will now have the most varying type of customers and the numbers for both the stores will definitely add up.However there is a candidate that repeat purchases (or market depth) might suffer as a result of going for both the options. There is a chance that the market may become vestal by the sudden influx of Canada Goose products at two demon nationa l retailers leading retailers to make less(prenominal) frequent purchases because they arent able to get their existing inventory out of the stores. In the off chance that this does happen, Canada Goose needs to devise an effective strategy to tackle this which can probably mean allowing discounts, something that is against the nature of the company.However by stocking at two national retailers with their own set of loyal customers, market share would definitely increase. These stores with their colossal network of retail outlets and efficient supply chain systems will be able to sell more products quickly than say for instance, the small free-living retailers. The common threat from the first three expansion strategies is that of brand dilution. Since the brand will now be sold it more locations, if not managed well, there is a chance of it loosing that brand exclusivity that the company has nurtured so far.Also to successfully go and tap international markets, the company need s to carry out extensive market research that will aid in product development. The product will need to be modified for regions, for instance, where the winters may not be as severe as they are in Canada. Option 4 International Expansion/buying back Distribution Rights Canada Goose already has established sales in 28 countries. In fact, Scandinavian countries were the early adopters of the brand as a high end, chic and fashionable product rather than the home base in Canada.The companys success in the European market proves that a market for Canada Goose exists internationally and that the company can effectively manage international distribution by giving distributors in the new countries full autonomy over product placement. This will not only increase sales and revenues but provide the company with valuable market research. For instance, Canada Gooses distributor in Japan Empire of the Sun Distribution friendship Limited used its extensive knowledge about Asian tastes to figh t down the company to modify their products to suit local tastes.The Chilliwack bomber with its fitted design was an essence of this collaboration and has gone on to become a market attracter for the company in not only in Japan, but in other countries including Canada as well. Market breadth, depth and share all will definitely increase as a result of this expansion. The companys already burdened supply chain will need to be upgraded to support this international expansion. A marketing department which can orchestrate all these international ventures will be needed, as well as opening satellite offices in countries where sales are going unfeignedly well (for instance, in Sweden).The risk associated with this move will be that there is a possibility that the over-reliance on third party distributors might lead them to become too indexful so as to pose a significant threat to company policy. A company wants to keep harbour of how its products reach the end user. To mitigate thi s risk, Canada Goose might consider Buying Back Distribution Rights in countries where sales are really well. So for instance in the Scandinavian countries the company can buy out the third party distributors and hence gain the maximum benefit from that market.This will also be a way to curb the threat represent by exceedingly autonomous distributors. Option 5 Increased Online social movement Canada Gooses closest competitor, The northwards Face, has a much more wider audience online. Canada Goose can reach to a much wider customer base by selling its products to a greater number of third party retailers. However, there is a risk to doing this. Stores selling counterfeit jackets will become harder to discriminate by the customer this threat is also posed by international expansion.Increasing piracy, an issue which underscores the fact that the brand is doing well, is a threat for the company and increased online sellers make it easier for pirates to con people. To mitigate this, the company can adopt a two pronged approach. Start a campaign to effectively teach customers on how to differentiate between genuine and shape products and second to file high profile public law suits to monish any potential pirates from copying your products. Question 5 If I were flourishing enough to be in Dani Reisss place, I would start a tactical program to expand into new markets.Brand awareness and recognition is at an all-time high and the company has raked in enormous profits over the last decade. It is in a position of strength and has the ability to expand its business, in an effective way all the while maintaining its image of exclusivity and high-end fashion. Considering all the options discussed above, I suggest the company to deliver products to both the nationwide retailers Asmuns and Levine Menswear. A good strategy would be to revise the contracts by talk to both the retailers and giving them incentives to do business on Canada Gooses terms.To placate Asmuns d emand for exclusivity in the mens business, an take over strategy for the company would be to give the two stores distinct product lines. The company is in a position of strength and has exceptional conversion capabilities and coming out for distinctive product lines shouldnt be too hard. By stocking at both the nationwide retailers, the companys market share is bound to increase however this new development will definitely draw some ire from its current small independent retailers. These larger nationwide retailers can use their economies of scale to effectively price out the small retailers out of business.Canada Goose, as a socially liable company, and also since these small retailers grouped together had significant bargaining power wouldnt want to disappoint them. Multiple channel distribution is one of the most discussed topics in Marketing Strategy. While it is usually necessary and near for a company to have multiple channels for distributing its products to the end cust omer it is at the same time tricky to manage this situation in a way where all the parties get along harmoniously. Canada Goose currently relies only on small independent retailers to deliver itsproducts and selects them after a thorough investigation to ensure that the retailer matches the brands persona.The companys strategy to start stocking its product at national chains is bound to draw ire from its current customers, as is already seeable in the email from Westboro Downtowns owner. However it is not quaint for companies to do business with both small retailers as well as retail chains North Face as has been mentioned in the carapace is effectively harvesting both these channels. In the MM Micromotors Simulation as well we learned on how to balance multiple distribution channels.To squelch concerns by small retailers, which when combined can pose a potent threat to the companys sales, communication can be the most effective weapon in Canada Gooses arsenal. A good idea will be to bring together all the small business owners, or at least the most prominent amongst them, and have them meet with Dani Reiss so that their concerns about being priced out can be addressed. Canada Goose can give them guarantees that they wont do business with large retailers who engage in unfair discounting or using the economies of scale card in any harmful way.Effective, clear communication can go a long way in solving many of the conflicts with smaller retail stores. Another common way to manage conflicts between large and small distribution channels is to use pricing effectively. Marketers can use implements such as discounting from the pricing toolkit to offer, for instance, bigger discounts to smaller retailers so that they can charge a higher markup and still sell at a price that is competitive with what the big national retailers are offering.What it means is that Canada Goose sells its products at a lower price to small retailers, so that they can earn larger profit p er jacket. The big retailers can use the volume of sails to their advantage. Also since the company has already shown immense potential in international markets, a very potent part of the strategy would be to further develop international sales. The US, despite its geographical closeness, accounts for only 10% of all sales of the company compared with Europes 40%Adapting products for less severe winters, while still maintaining its prestige and roots can turning guaranteed success for the company. Product development will be key here. The company has to continue to evolve their designs to adapt to local tastes in these new markets because, for example, coarse winter wear isnt necessarily the first choice for many in Asia where the climate is much warmer. Company owned retail stores can be a great asset for Canada Goose. A trend started very successfully by Apple, is now being replicated by any brand that wants to expand sales yet keep that feeling of exclusivity and class.The Nor th Face has 28 company operated retail locations in the US that stock North Face outlets exclusively. These stores can be used as a tool to add to the brands premium feel. Louis Vuitton, for example, only follows this business model and sells only through its own stores. That being said, retail is a in all new ballgame unlike anything Canada Goose has done before. Theyll need to consume a new team to manage these operations, implement a revamped supply chain strategy and otherwise is very resource intensive.