Case Study

1. CANADA GOOSE
-SUMPUNN KAPOOR
-ABBAS BHINDERWALA
-MOUSUMI DEY
-PRITI KUMARI
-KHAYAL DAVE
-ANKUR MUKHERJEE
-KRATI JAIN

2. FACTS
 Inception in 1957 with the headquarters in Toronto, Canada.
 Products featured in 40 countries across the globe.
 Company was a leader advocate for Polar Bear International, to preserve decreasing number of Polar Bears.
 Works on MSRP(manufacturer suggested retail price).
 North Face and Moncler are the chief competitors for Canada Goose.
 Believer in sustainable practices for the protection of environment.
 Does not do advertising and promotion on traditional channels. Instead relies on word of mouth marketing,
sponsorships and magazine features.
 High growth rates in sales from 2009 onwards.
 Bulk of sales coming from Canada and Europe. Smaller percentages from USA and rest of the world.
 Problems faced by the company regarding meeting of demands.

3. PROBLEMS
1. Meeting the demand of retailers and distributors (Shortage of supply)
2. Counterfeits and Grey markets
3. Entry into South Korean markets and strategy to be adopted
4. Concerns from Empire of Sun Distributors in Japan

4. SOLUTIONS
1. Meeting the required demand:
 The company has enough financial resources for capacity expansion.
 Set up new factories on the west coast primarily for Asian markets(Japan, South Korea and any other
market in Asia they wish to expand to) in order to reduce transportation costs.
 This will help the company meet demand in new markets and concentrate the current resources in
bigger markets.
2. Counterfeits and Grey markets:
 Verification of authenticity: Providing a certificate or some other proof of authentication with every order
and a money back guarantee will enable consumers to shop with the utmost confidence.
 Transparency: Consumers want to trust the platform they’re shopping on, so businesses need to provide
all the necessary information for them to make educated purchases. Familiarizing consumers with your
business and your products, offering clear labels and packaging (i.e. warranty information, serial
numbers, etc.)
 Encourage Feedback: Consumers are the backbone of any retailer and can play a significant role in
combating counterfeit items by reporting any suspicious information back to the business. Encourage
feedback from your consumers and get back to them with thoughtful responses, making the experience
much more personalized and building lasting, loyal relationships.

5. SOLUTIONS(CONT…)
3. Entry into South Korean markets and strategy to be adopted:
 JV with a large distributor on the lines of the Japanese distributor with a majority stake and have more
control so that it does not go the way of IZOD Lacoste.
 Target “early adopters” with lower end brands like Constable and Chilliwack.
 Counter the grey market in South Korea according to the strategies mentioned before.
 Once enough information of the marketplace has been gathered, repurchase the distribution rights like
they did in Scandinavia.
4. Concerns from Empire of Sun Distributors in Japan:
 Two options which are available for Canada Goose here is either the sell to the South Korean market using
the Japanese redesigns or treat it like a western market. Both the strategies have their pros and cons.
 Going with the former strategy involves a risk with the Japanese distributor. However some commission
can be offered in order to appease them.
 Going with the latter strategy, treating South Korea as a western market will attract early adopters. In the
meantime, the company can gain knowledge of shopping trends of “functional users” and expand further
using the already established distribution network. This strategy is more recommended than the former.

6. BEST PRACTICES
 Sustainability:
 Canada Goose strictly followed the rules laid down by the fur council.
 Used all natural animal furs instead of synthetic materials which created harmful chemical by-products.
 Also the leader advocate of PBI(Polar Bear International) which worked for the protection of polar bear
populations. Part of its sales went to PBI.
 Minimal cost of promotion:
 Relied mostly on word of mouth promotion.
 Promotions through sponsorships, movie product placements, magazine features and collaborations
with high profile individuals.
 Manufacturing units in Canada:
 Foreign customers trusted the products made in a cold country like Canada.
 Domestic customers valued the products made in the home country.
 Buying back of distribution areas:
 This practice although initially costly proved effective in the long run as it gave more control to the
company over distribution.