Canada Goose Inc.

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Information about Canada Goose Inc.
Business & Mgmt

Published on March 12, 2014

Author: argharay56



Canada Goose Inc.

Canada Goose Inc. Case Analysis SDM, NMP Term IV Group 5 Abhijeet Tomar - 03 Argha Ray - 15 Khushal Malik - 28 Vipin Kathuria– 59

Context • Goose is emerging manufacturer of luxury sports jackets. • It caters to the premium segment of the market through a network of authorized retailers. • Seeks to exclusively brand its products as a status symbol. • CEO Reiss is weighing two lucrative distribution offers from national chains. • Also weighing between extending reach or protecting brand image.

The Incumbent Retailers: • Time tested authorized retail channel. • Lesser bargaining power as individuals. • Long history of association through thick and thin. • Contracts can be cancelled for Loss Leaders. • Maintained the exclusivity of the brand. • Reluctant to experiment with new products without track record. • Limited reach. • Not in national consciousness vis a vis National Chains. BenefitsPitfalls Yardsticks • Lucrative and long term National chain offers. • Exclusive vs Intensive distribution. • Departure from old marketing philosophy. • Demand for products exceeding supply. • Goose’s expansion plans. • Control over distribution. • Rarest of the rare Brand Image. • Backlash from existing retailers. • Reiss’ conscience.

Asmuns’ Benefits: • Prestigious fashion specialty store. • Association with upscale brands of leading designers. • Adequate reach amongst Canada’s largest cities. • Assurance of 100% markup preservation. • Choice between both men and women range. • Prominent self space. • Immediate jump in sales with potential of 5% of total Canadian sales.

Asmuns’ Pitfalls: • Goose is one among equals in product display. • Too much of reach. • Arm twisting by Lisa. • Intensive promotion through loyalty program. • Can dictate terms on colors and style. • Asymmetric bargaining power. • Can backtrack on markup assurance during inventory clearance. • Doesn't conform with Goose’s traditional and adventurous image. • No guarantee on future orders in terms of men and women’s range.

Levine’s Benefits: • Exclusive menswear store. • Better offer in terms of order variety than Asmuns’. • Adequate reach across Canada. • Familial service and affluent customer base. • Acceptance of newer models based strictly on prototypes. • More reach on offer with Store expansion across Canada. • Immediate jump in sales with potential of 5% of total Canadian sales.

Levine’s Pitfalls: • Goose is one among equals in product display. • Too much of reach. • New sales representative may be a mole. • Too pricey compared with Goose’s existing sales force. • Formal clothes does not gel will luxury sportswear. • Can dictate terms on prototypes. • Asymmetric bargaining power. • Can discount on products during inventory clearance. • Doesn't conform with Goose’s traditional and adventurous image.

Decision: • Brand Dilution through over expansion. • Goose will have to part ways with stylish, functional, authentic and traditional image. Will not be able to call its soul its own. • Intensive distribution through chains will take away the aura surrounding Goose. • The adventurous image projected through sportspersons in wilderness will take a huge dent. • Reiss will lose old channel partners in trying to create new. • Don’t trudge along North’s way which has products in the low price range as well. • Goose may lose the differentiation between natural and artificial ingredients when kept alongside other synthetic clothing. • Inadequate supply in fact helps to create elusive and mystical image for the target segment. Reject both offers.

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