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Canada Goose Case Study

Autor:   •  November 9, 2015  •  Case Study  •  1,514 Words (7 Pages)  •  1,575 Views

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Executive Summary: Reiss, the CEO of Canada Goose is confronted with decision to which retailer to sell their products at.  Canada goose was started operating in the late 50`s and their purpose to offer warm clothes for extreme weather. The company was always operated by the founded family; however, with the performances of Reiss, they decided to place him in charge. Thanks to Reiss, the company is not selling their product outside of Ontario and has expanded internationally. As the market has grown for premium jackets, so have Canada Goose revenues. In addition, they are also able to capture other group of consumers who love their product, because they offer great styling, comfort and quality. Therefore, price is not an issue for most Canada Gosse consumers as they realized how well the product is.  However, Reiss is facing a situation to which retailer to sell their products at to obtain their brand value and name and increase in market share. He has an offer from Asmuns Place, who operates in 10 location in Canada and sell both females and males clothing and Levine`s Menswear who only sell men clothing but twice the location and expanding and loyal customers.

Problem statement:

Without diluting the brand value through expansion, Reiss the CEO of Canada Goose need to decide which retail to distribute it product. They also need a strategy to position itself as a leader in the premium jacket market but it keep it self-unique and withstand competition.

  1. Situation analysis:
  1. Canada Goose was founded in 1957 with the objective to provide jacket for extreme cold weather. As time passed, the brand recognized to provide both warmth and stylish jacket for both men and women. As the company was family owned since the beginning of it operation, it is now run by Dani Reiss, who has great reputation in the organization and in the industry.  In the past Canada Goose has been a niche market only in Canada but Reiss vision is to expand beyond Canada and increase in sale but keep the company reputation and quality. As the company is operate in Canada and uses Canadian made material and manufacture by Canadian, it is very attractable to Canadian consumers. One of the unique materials used in the Canada Goose Jacket is animal’s fur rather than synthetic material which created unwanted chemical that pollutes the environment.  In addition, the organization refuses to buy fur from farm as they torture their animal and rather purchase the fur from Northern Canadian fur traders- the Native Canadian communities. Currently Canada Goose distributes its product through independently owned and regional retails. They are now considering distributing their jackets through two big retailers in Canada and who are also well known in Canada. Other channel of distribution includes online direct to consumers. In addition, Canada Goose has an agreement with an European distributor to sell their product in Europe and giving them full authority to place their product anywhere in Europe.

  1. SWOT:

Strength:

  • Brand image and reputations
  • Authenticity and quality brand
  • Able to keep up with fashion
  • High margin
  • Does not require advertisement but word of mouth

Weakness:

  • High price
  • Few distribution channel
  • Using animal fur been regulated

Opportunities:

  • Growth in youth market
  • Increase in revenue
  • Manufacture winter accessories
  • Demand exceed supply
  • National pride
  • International Image

Threats:

  • North Face Jacket
  • Scandinavia
  • Price sensitivity to bull group
  • Recourses availability

  1. Market analysis

When Canada Goose first started its operation their market target were middle class families and adults the ages of 34-54 and above. However, this has changed dramatically in the past few year due to great style in the jackets product itself. The new market segments consist of youth between the age of 16 to 34, 35-54 and above. In addition, this has helped increased sales by 15% and continuously growing.

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