Canada Goose Case Analysis -
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Case Assignment 5
Case: Curled Metal Inc. – Engineered Products Division
Q5) What factors are relevant when evaluating the opportunities presented by Asmuns Place and
Levine’s Menswear?(For possible factors, please refer Distribution(Place) last lecture slide on
Factors affecting channel selection). How important would you rate each of these factors in the
context of the decision Reiss is facing and why?
High ratings:
Brand Positioning
– Kotler defines brand positioning as “the act of designing the company’s
offering and image to occupy a distinctive place in the mind of the target market” and brand
positioning is what Reiss and his executives have been working on painstakingly for a period of
time as one of the most important objectives to be achieved; Reiss wants to build a concrete
brand image to the customers that it is a fashionable and high-functional jackets and wearables,
which are prestigious. The following common characteristics of Asmuns Place and Levine’s
Menswear can contribute to the desired brand positioning of Canada Goose:
Price insensitive customer base
Exclusive brand images as prestigious retail outlets
Most importantly, brand images of these two align with the positioning objectives that
Canada Goose is pursuing.
Level of control/collaboration with channel
– According to the given case, there were numerous
attempts Canada Goose has taken previously with its distributors, in terms of pricing, and,
moreover, Canada Goose’s marketing team prefers to minimum advertising strategy as keeping
low-key company profile can help the company continue its path towards being symbolic to
premium brand; furthermore, Canada Goose specifically chooses several ways of promoting its
products by selecting where to sponsor. These findings are plausible to interpret that Canada
Goose rates the level of control and collaboration with channel very highly.
Channel conflict issues
– According to the case, two types of channel conflicts – vertical level
conflict and horizontal level conflict – are identified:
Vertical level conflict – As identified in the email from Steinhauer, partnering with
Asmuns Place and Levine’s Menswear creates a critical problem to localized individual
retailers, like Westbrook’s as the individual retailers do not have enough bargaining
power. However, if all the individual retailers form a sort of alliance and refuses to buy
Canada Goose, it is going to cause a severe issue for the organization.
Horizontal level conflict – This type of conflict is identified in the case, where the
director of Purchasing of Asmuns Place called Reiss about an exclusive partnership
between Asmuns Place and Canada Goose, implying no partnership with Levine’s
Menswear. This is crucial as if Reiss and Canada Goose pursues the exclusive partnership
with Asmuns Place, it cannot form any partnership with other retailers.
Low Ratings:
Economic
– The implications for sales and profits are the major reasons why Canada Goose
plans to take the opportunities provided by Asmuns Place and Levine’s Menswear; Canada
Goose’s objective of organizational expansion is ultimately to achieve increased sales and
profits. However, when evaluating the opportunities presented by Asmuns Place and Levine’s
Menswear, the economic factor is rated low as both these opportunities provide same amount of
sales (5%) in Canadian market.
Consumer – As discussed briefly in the brand positioning, consumer base plays a significant role
in evaluating which channel is to be utilized for the distribution of the product. Although, in the
past, Canada Goose’s major customer segment was an affluent adult, who were price insensitive,
the segment got wider (from 16~64 years old). Asmuns Place and Levine’s Menswear covers the
price insensitive consumers but, as of now, since there is a wide customer base (in terms of age)
available for Canada Goose, consumer is not the factor to be rated highly.
Q6) Evaluate the opportunities presented by(a)Asmuns Place and(b)Levine’s Menswear. Please
rate the opportunities as (Attractive/Not attractive) on all the factors identified(inQ5) above.
Please provide the reasoning for your ratings.
Factors
Asmuns Place
Levine’s Menswear
Brand Positioning
Attractive
Attractive
Level of Control
Unattractive
Attractive
Channel Conflict
Unattractive
Unattractive
Economic
Attractive
Attractive
Consumer
Attractive
Attractive
Reasonings for Asmuns Place ratings:
Attractive Brand positioning: Asmuns Place pursues the brand image of premium and
prestigious outlet that treats high-end products with trendy fashionable attributes. If
Canada Goose can distribute its products to Asmuns Place, it can make the concrete
brand image of Canada Goose as premium.
Attractive Economic outcome: At ceteris paribus, just by selling women’s clothing,
Canada Goose can be benefited with 5% increased sales within Canada. Moreover, as
discussed from the calls with the director of Purchasing of Asmuns Place, if they pursue
to sell men’s wear as well, more sales boost can be expected.
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