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Canada Goose

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Kyrsten Piercey

on 1 February 2015

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Transcript of Canada Goose

sup nigga

Case Study 3:
Canada Goose Distribution Strategy

SOLUTION!
Selective to Exclusive
Launch of exclusive Canada Goose stores
Eliminating third party retailers
Customer-experience oriented
Mobile fleet "migrating goose" at major alpine resorts
Key Findings / Facts
SWOT Analysis
By: Kristine Li, Jessica Saplala, Lucinda Wu, Sam Knudson, Ryan Scholz, Michael Harris, Kyrsten Piercey
Marketing Management 1102
Anna Marie Webb-Hughes
Set J: Team C

November 17, 2014

Marketing Challenge
Competitive Analysis
Alternative #1
Alternative #2
Alternative #3
Implementation Plan
Core Concepts
References
THANK YOU!


- Marvellous Marketeers
- Marvellous Marketeers
THANK YOU!
What distribution strategy would best help Canada Goose attain an average increase of 40% in revenue over 5 years to coincide with the launch of their new optical line?

To consumers who brave nature's frigid elements, Canada Goose is a fashionable apparel brand that ensures protection through quality materials and ethical practices.
Positioning Statement
To increase revenue by 40% average over 5 years by changing our distribution strategy from selective to exclusive in North America.

To increase revenue by 40% average over 5 years by developing an intensive distribution strategy.

Loyal brand patrons

Increase in price points due to an increase in product quality

Increase in operating costs and potential increase in sales seasonal sales

Both a luxury & utility brand

Markets that need to be penetrated

Potential consumers

Celebrity advertising
Assumptions
Marketing Channel (distribution channel)

- a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business customer
Direct vs. Indirect Channels
- producer of the good sells directly to the final customer (direct); most channels have one or more intermediaries (indirect)
Vertical Marketing System (VMS)
- distribution channel structure in which producers, wholesales, and retailers act as a unified system; one channel member owns the others, has contracts with them, or has so much power that they all co-operate
Administered VMS
- coordinates successive stages of production and distribution, not enough common ownership or contractual ties, but through the size and power of one of the parties
Contractual VMS
- independent firms at different levels of production and distribution work together under contract

Andrew Garfield
Emma Stone
Kate Upton
Advantages:
1. Creates a more exclusive brand image and experience for the customer
2. VMS allows for greater overall view of the entire marketing process
3. Increased sales in expanded territories

Disadvantages:
1. High initial investment cost (store construction, increased distribution networks)
2. Possible failure due to consolidating the existing retail outlets
3. VMS might be too much responsibility for one company to take on
By further expanding Canada Goose’s selective distribution channels and adding a brand new line of sunglasses, Canada Goose will undoubtedly reach its average 40% increase in revenue within five years.
Advantages:
1. Expertise and market knowledge will be fully utilized and potentially improved
2. Less expensive to operate and maintain
3. Expands network and market partners while retaining its exclusivity by grouping with elite and top-notch businesses

Disadvantages:
1. Prospective partners might not share the same core values of Canada Goose
2. Increase in expanding expenses as well as the costs that come with the new line’s launch
3. Too many partners might imply less control over products and management

1957 - Sam Tick, founded Metro Sportswear Ltd, now become Canada Goose Inc.
Manufactured lumber jackets, shirts, and other types of outerwear
2000 - focused on our own brand, and all of our products came together under the name, Canada Goose
One of the few Canadian outerwear brands that manufactures only in Canada
"Free People From The Cold" (Canada Goose)
"Entrepreneurship, accountability, passion,respect, and innovation"
Partnerships - The Conservation Alliance, Polar Bears International


Canada Goose
Contingency Plan
Campbell, S. (n.d.). Top 10 Most Luxurious Hotels In The World. Retrieved from
http://www.readersdigest.ca/travel/world/top-10-most-luxurious-hotels-world/

Canada Goose. (2014). Our Story. Retrieved from
http://www.canada-goose.com/on/demandware.store/Sites-CanadaGooseCA-Site/default/Home-Show

Dymond, G. (2013, March 6). Guiding the flock. Retrieved from
http://www.thegridto.com/life/fashion/guiding-the-flock/

Kim, S. (2014, January 22). Will That $700 Winter Jacket Keep You Warmer?. Retrieved from
http://abcnews.go.com/Business/700-winter-jackets-worth-investment-ridicule/story?id=21611417

Meiszner, P. (2014, January 7). Animal rights activists target Yaletown boutique for selling fur-rimmed
jackets. Retrieved from http://globalnews.ca/news/1067349/1067349/

PrivCo. (2014). Canada Goose Inc. Retrieved from
http://0-www.privco.com.innopac.lib.bcit.ca/private-company/canada-goose-inc

Robertson, G. (2012, August 23). Year of the Goose. Retrieved from
http://www.theglobeandmail.com/report-on-business/rob-magazine/year-of-the-goose/article4307839/?page=all

Teresa Bitti, M. (2011, July 19). Canada Goose takes on counterfeiters. Retrieved from
http://business.financialpost.com/2011/07/19/canada-goose-takes-on-counterfeiters/?__lsa=8cd3-e764

Wright, L. (2014, October 15). Canada Goose unveils new Toronto factory. Retrieved from
http://www.thestar.com/business/2014/10/15/canada_goose_unveils_new_toronto_factory.html


Further expanding CG's selective distribution channels and adding a brand new eyewear line to all retail partners, outlets, new prospective partners
Continue to advertise brand with collaborators
Positioning of seasonal items
Availability of space for CG products
Advantages:
1. Producer gains recognition
2. Establishes a positive reputation with the customer and producer
3. Benefits the customer by offering greater options

Disadvantages:
1. Difficult to control large number of retailers
2. Usually low price and low margin products are situated with intensive distribution
3. Goes 100% against our marketing challenge
Target Market
YEAR 1 & 2
YEAR 3 & 4
YEAR 5
Exclusive distribution through
experiential retailing
Selective distribution strategy
Q1
: Open up warehouse in Tongzhou district to serve Asian markets

Q2
: Launch store in Beijing and S. Korea

Q3
: Continue to monitor sales and customer satisfaction

Q4
: Eye new markets and deepen product line
Q1
: Flagship stores new completion in domestic Eastern markets (Year 1); Western markets (Year 2); launch eyewear worldwide

Q2
: Step up marketing efforts

Q3
: Monitor sales; customer satisfaction

Q4
: Prepare for store openings in subsequent markets
Q1
: Build wearhouse in Germany (Year 1) to house product; Poland (Year 2) if required

Q2
: Flagship stores near completion in Western European markets (Year 3); North Eastern European markets (Year 4)

Q3
: Continue to monitor sales; customer satisfaction

Q4
: Prepare for China launch
Full transcript