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:

Exclusive
distribution.

vs

Intensive

Departure from old marketing

philosophy.
Demand for products exceeding
supply.
Gooses expansion plans.
Control over distribution.
Rarest of the rare Brand Image.

Time tested authorized retail channel.

Lesser
bargaining
individuals.

power

as

Long history of association through

thick and thin.
Contracts can be cancelled for Loss
Leaders.
Maintained
brand.

the

exclusivity

of

the

Reluctant to experiment with new

products without track record.
Limited reach.

Backlash from existing retailers.

Reiss conscience.

Benefts

Lucrative and long term National

chain offers.

Not in national consciousness vis a

vis National Chains.

Pitfalls

Yardsticks

Asmuns Benefts:

Prestigious fashion specialty store.

Association with upscale brands of leading designers.

Adequate reach amongst Canadas 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 Gooses traditional and adventurous image.
No guarantee on future orders in terms of men and womens range.

Levines Benefts:

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.

Levines Pitfalls:
Goose is one among equals in product display.
Too much of reach.
New sales representative may be a mole.
Too pricey compared with Gooses 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 Gooses 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.

Dont trudge along Norths way which has products in the low price range as well.

Goose may lose the differentiation between natural and artifcial 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.