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Canada Goose Inc.

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Canada Goose Inc. wants to expand the market. Dani Reiss have to make a decision according the two lucrative opportunities are offering by Asumuns Place and Levine´s Menswear or stay with the current situation. However, the decision needs to fit with the company’s current marketing strategy — expand the market, increase the profit, but do not devaluation the brand. This decision is a departure for selling to national chain.

Situation Analysis
Expected to expand the market size
Become a market leader
Provide a high-end products
Keep a low-key company profile

Canada Goose is a company which produce outerwear able to worn in any extreme cold weather condition since 1957. Over time, the brand evolved to become fashionable and functioned brand. Canada Goose was a family company, now was running by Dani Reiss. Since he had taken over control of the company, the company gets success. He realized there is a market for well-made, fashionable jackets that featured a brand name. He decided to expand the company. Through these years, Reiss and his executive team made Canada Goose a well-know brand name. Canada Goose was almost as popular and well known in Scandinavia as it was in Canada by 2008.

S.W.O.T Analysis
The company has a long history and it has a good reputation. Canada Goose produces specific products. Especially for weather conditions. It is a high-end product and it is easy recognize as a premium product by public. Its main market is in Canada and it is a Canadian national brand, moreover, it produces in Canada. It is authenticity. Using real down. Providing three times more warmth per ounce than a comparable synthetic material. The brand had steadily grown, many retailers had begun to request additional items except the three most popular item. Products satisfy consumers’ needs: fashionable and useful. Warehouse could handle any expansion in product offering in the future. Word-of-mouth advertising keeps its advertising costs down. It was able to reinvest profits into product development. Canada Goose sourced furs from northern Canadian fur trader, is helping many Native Canadian communities. It helps increase the company reputation.

It is a high-end product so the consumers group is limit.
Using real down for material, according the produce cost will be higher than competitors which using synthetic material. Some new products were not featured in most stores, because independent stores did not want to see the new products without a proven track record of sales. Some products did not have stable sales in the market.

Advertising limit at product placement and sponsorships according its marketing strategy, no advertisements on television and radio. Could not give a big discount to some big retailers because it will be threaten to smaller shops. It is an indirect channel: producer- retailer- consumer. It might have a high maintaining inventory cost.

Customer group range is big: between 16 to 64 ages old.
The market still has room to grow. Its supply is higher than its demand Brand loyalty is high. Customers have the product as a status symbol. Selling to large national chains instead of focusing on the small independent stores. Offer from Asmuns Place: 10 retail stores across Canada. And it will bring Canada Goose to the upscale market. Offer form Levine´s menswear: 20 stores (currently), 40(future). Also it will bring Canada Goose to the upscale market. Threats:

Numerous competitors in the premium winter jacket market.
The North Face which it is the main competitor produced more extensive product lines than Canada Goose. Illegal knockoffs.
All major competitors were available purchase online, whereas Canada Goose
just has two online clothing companies to sell the products. Overexpose will ruin the brand name

Canada Goose is a high-end product, according to the consumer group is between 16 to 64 years old, for the young people might not have sufficient spending power to consumer the product. Furthermore, since Canada Goose is a high-end product, some low-end product might imitate, the group of young people might buy knockoffs. Moreover, the young group likes fashionable, so the style needs to change frequently. As a result, the inventory stock is limit. In conclusion, it is very difficult to stand firm in the young people group with a pricy product. According to the advertising, if the product is over promoting, the brand seems to be cheap. Customers might not think have one is a status symbol like before. They might not fell the product is unique. It will affect the brand loyalty. Finally, Canada Goose still has room to grow in this market, but it need to make a specific market promo to specific segment.

Market analysis:
There are numerous competitors in the premium winter jacket. Many well-known world´s biggest brand names have a high price than Canada Goose Low price competitors are not a big threat for Canada Goose. The North Face is the major competitor for Canada Goose, and it recognized by many Canadians consumers by their style and functionality as Canada Goose did. All products manufactured by Canada Goose were marked up approximately 100 per cent when being sold at retail. Prices range from Cdn$420 to Cdn$610.

When independent stores order new products or products need a proven track record of sales of them. Brand popularity is increasing; consumers identify its products as a status symbol. Low-key marketing strategy.

Canada Goose wants to expand the market, so status quo cannot satisfied. Both opportunities satisfied the target market: Asmuns Place for segment 2 and Levine´s Menswear for segment 3. Since Asmuns Place put a condition that cannot work with both together. Canada Goose has to choose one of them to achieve its goal: expand the market. Canada Goose is using a multiple indirect channel for their sales. According to main a good relationship with each sale channel, Canada Goose need to be more concerned with the discounts that they are putting on the products; because it might threaten other smaller retailers and it might bring the opposite effect.

After all analysis, the suitable alternative for Canada Goose to achieve its goal would be better to choose alternative 2: accept the offer from Asmuns Place. First of all, Asmums has a better and longer store reputation than Levine´s. Majority Canadians were known that Asmuns Place as a destination for high-end brands and products by some of the world´s leading designers. It means people will know Canada Goose is a high-end product. The brand visibility will increase without doing any promotion and do not affect the current low-key marketing strategy. Secondly, Asmuns Place provides unisex customers; it has more change to sell the product than in Levine´s. thirdly, both national chain store are for upscale market, so the price is not a factor. And each one can make a 100% markup. Finally, Asmuns Place will feature the women´s wear for the short term and might have menswear for the long term. It creates more profit than Levine´s Menswear does. However, Asumuns Place marketing strategy will conflit with the current marketing strategy that Canada Goose has; but it is not a big issue. Because Asumuns Place sell high-end products, the costumers are from high income level.

Short Term
Accept the offer from Asmuns Place to sell women wear in its national chain stores. The age range for Canada Goose is 16 to 64, so do not only place the products for affluent women between 31 to 50 which is the biggest segment. In this segment, some customers are mother, and they will buy clothes for their kids. Canada Goose should put full age range product in its 10 stores location. Furthermore, Canada Goose should keep the financial strategy with 100% markup with their retailers. Moreover, Canada Goose should inform other retailers such as Westbrook´s Downtown, join into the nation chain cannot threaten their business. Keeping a good relationship with these intermediaries. Finally, the marketing strategy can be flexible in this case, create a print advertisement for bringing the product to Asmuns Place.

Long Term
Keep working with Asmuns Place to expand the product styles. If Asmuns Place feature with the menswear, use the same strategy to introduce the product as the women wears. Put all Canada Goose products in one session, it helps costumers easy to find them, and can increase the sale by each other.

4P´s Analysis:
Production: because place products to a nation chain, more people know about this product, the sales will increase. Price: it does not change, because Canada Goose need to considerate others retailers. For Asmuns Place should increase a little bit more the price, because in a chain stores like this, need to provide a good service, the customers will be happy and they will not care the increased price. Also, Asmuns Place is a upscale stores, costumers are base on high income level. Place: multiple channel: online, in store, retailers, distributors. Promotion: follow the current strategy; make a exception with Asmuns Place. Also can introduce a family package, when buy one can get discount on the second one on youth style.

Action Plan
1. Accept the offer with Asmuns Place; make a agreement ensure the margin and the pricing discount. 2. Notify other retailers that the nation chain stores will not threaten them. 3. Select the most suitable products for the placement to the news store. 4. Create the print advertisements to let Asmuns Place´s customer know that Canada Goose is coming to the place. 5. Make a family package, when buy one can get discount on the second one on youth style. Purport to use the biggest segment to help to expand the other segment. Try to get a big market share as possible. 6. Approving more online retailers to sell the products.

7. Promo the product is from Canada, let people support local business.

If work with Asmuns Place has an unsuccessful result or have an opposite effect, Canada Goose might cancel the contract with Asmuns Place, move out the product, keep the Status Quo.

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