CANADA GOOSE INC. : AT A RETAIL CROSSROADS (CASE ANALYSIS)
Objective To cement the position position of Canada Goose as a Market Leader in premium woolen jacket market without deviating from existing marketing strategy and also taking independent
Possible Alternatives
Tieup with Asmuns Place- Premium Canadian Specialty store for Men and Women (10 in nos)
Tieup with Levine’s Menswear - Premium Menswear retail chain (20 in nos)
Tieup with Both large retailers
Continue with existing independent retailers only
Tie-up with Asmuns Place
Upside
Perceived as place with “Hi “Hi--end brands and Products” Products” Access to 10 10 retail sto stores res in upsc upscale ale malls and complex complexes es (5% sale sales s contribu contribution) tion) Immediately keep Women’s clothing and may keep Menswear in near future
Downside Promotion of Goose products along with other products
“Exclusivity”- condition of keeping menswear (no Levine’s menswear), lesser “Exclusivity”control
Limited range (3-5) range (3-5) and smaller upfront order
Upside TieTie-up up with Levine’s Menswear
Access to 20 20 retail sto stores, res, high-qua high-quality lity mensw menswear ear products (expanding to 40)
Wealthy clients (no discounting)
Ready to sell full range as well as new products (prototypes)
Downside Expensive sales rep reqd (may result in conflict with other sales reps at lower salary)
Tie-up with Both chains
Upside
Asmuns for womenswear and Levine’s for menswear (access to 30 upscale retail stores) Premium clients (cost not a factor)
Downside
Later on, Asmuns request for menswear can spoil relation with Levine’s
Resistance from independent retailers
Overexpansion Overexpan sion resulting in dilution dilution// market-saturation
NoUpside Tie-ups, continue with independent retailers
Strong relationship and control over channel
Alignment with with brand image
Downside
Difficult to get intensity intensity in in coverage (North Face will take the market share)
Recommendations
Tieup with Levine’s Menswear only only
More control compared to Asmuns
Policy of “No discounting” discounting”
Focus on New offerings as well as Hi-end products (may be exclusive exclusive))
Reaffirm commitment to independent retailers (including Westbrook’s) Westbrook’s)
Convince them that tieup with Levine’s will strengthen the brand and inturn
facilitate their sales (take sales (take ex of North Face) Commitment of Parity Parity in margin and promotional schemes/offers
Expand Online Retail Partners
Strict “No Discount” Policy, monitor and cancel license, if found guilty
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