• Document: Canada Goose Case Study
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THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL Canada Goose Case Study Dylan McCue and Ashton Ratcliffe JOMC 475.002 11/13/2013 Canada Goose Case Study Dylan McCue Ashton Ratcliffe Introduction/Executive Summary: This case takes place in July of 2008, and regards two opportunities available to Canada Goose - a luxury jacket company based in Ontario. The company has been offered long-term contracts by two distinct national retailers of high-end clothing. We will weigh the comparative benefits for Canada Goose in partnering with either of these retailers: Asmuns Place or Levine’s Menswear [see Exhibit 3]. Brand Position: At the time of the proposed partnerships, Canada Goose had solidified itself as an exclusive, brand-name jacket company offering products with extremely high functionality. We understand that while David Reiss must make sure to protect Canada Goose’s current brand position, continued growth is the desired goal. Either partnership will inevitably affect the company’s distribution model, but Reiss can minimize a negative impact on overall brand position by keeping Canada Goose’s production and marketing models consistent with founding values [see Exhibit 2]. Marketing Strategy: Canada Goose primarily relies on word-of-mouth buzz – a natural result of the quality product offering - for the bulk of its marketing. In order to maintain the exclusivity of the brand, Canada Goose narrowly targets consumers using product placement in movies, paid magazine features in upscale publications, and various sponsorships. Even in the European market, Canada Goose goes to great lengths to ensure that its retail partners and their marketing strategies align with the overall brand. By keeping overall marketing costs comparatively low - at 10% of total costs with marketing salaries included - Canada Goose is able to reinvest profits into product development [see Exhibit 1]. 1 Canada Goose Case Study Dylan McCue Ashton Ratcliffe Target Market: As the Canada Goose brand expanded beyond its niche market, its typical customer profile grew from the affluent 34- to 50-year-old range to the affluent 16- to 64-year-old range. Though Canada Goose products are designed to withstand Arctic temperatures, a large part of its target market is made up of customers from more temperate areas (who respond to the products positively because of their authenticity). Canada Goose now targets international markets throughout North America and Europe, relying on its high price points and narrowly-focused marketing strategy to ensure that the brand is not diluted. Recommendation: Generally speaking, long-term company growth will help Reiss reach his overall goal of market leadership. Since brand awareness of Canada Goose in the domestic (Canadian) market is growing, it makes sense to partner with national retailers to supply this market – as long as doing so won’t undermine the established brand position. By comparing the consequences that signing either (or neither) contract would have for Canada Goose, we will show that the partnership with Levine’s Menswear provides the best growth opportunities with the lowest risk of brand dilution [see Exhibit 3]. In terms of general brand image, Levine’s Menswear and Asmuns Place are quite similar. Both are well-known, leading fashion specialty stores. A partnership with either Levine’s Menswear or Asmuns Place would initially represent 5% of Canada Goose’s total sales, and both would charge the typical markup of 100% on products. Though this proportion of total sales is significant, it is not drastic enough to cause major brand dilution - as long as marketing and production strategy remain consistent. We can support this point by looking at Canada Goose’s successful expansions into international and online markets: if the Canada Goose brand was kept 2 Canada Goose Case Study Dylan McCue Ashton Ratcliffe strong during these expansions, then a domestic expansion can be accomplished sustainably as well. In the long run, national partnerships with both Levine’s Menswear and Asmuns Place show potential for significant growth. Though Asmuns Place’s initial order only included women’s jackets, the company’s executives expressed interest in one day expanding orders to include at least a

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