Discuss how each of those factors would have an influence

Assignment Help Marketing Management
Reference no: EM133525665

Case Study: If $1000 sounds like a lot to pay for a jacket, think about another number: $1.82 billion. That was the market value of Canada Goose, producer of those pricey jackets, when its IPO hit the market in March of 2017. This was the highest valuation of any luxury retailer in the world. Not bad for a company that started in a small warehouse in Toronto in 1957. Entrepreneur and immigrant Sam Tick opened that warehouse more than 60 years ago, selling woollen vests and snowmobile suits. But there was not the same sticker shock back then when the company was known as Metro Sportswear, compared to the luxury prices being charged by its current offspring: Canada Goose.

As Sam and his son-in-law began developing innovative ways to create outerwear that would withstand the harshest of elements, the reputation of Metro Sportswear grew. The branding changed from Snow Goose to Canada Goose. But much of the growth in the reputation of Canada Goose comes from partnerships with customers such as climbers and field researchers and film crews working in extreme environments.

Along the way, the Canada Goose name developed a reputation for quality and innovation. The firm continues to seek new means to deliver quality, with a focus on "Made in Canada." In the last decade, Canada Goose began to grow exponentially, with two new manufacturing facilities opened in 2017, expansion of both the factory and office spaces in its global headquarters in Toronto, and flagship retail stores in Toronto; Calgary; New York City; Chicago; Boston; London, U.K.; and Tokyo.

With the very successful IPO in 2017, Canada Goose seems to have created a permit for printing money. Despite uncertain economic times, those interested in buying a Canada Goose product don't seem to be fazed by the price of the product. This willingness to buy despite the high prices has remarkably impacted Canada Goose's bottom line: profits increased from $5 million to $200 million once the company expanded its manufacturing and retail operations.

There is a lot of competition for high-quality outerwear, including from The North Face and Patagonia. Those brands are well established in the market, so it was a calculated risk for Canada Goose to go head to head with those brands and charge a premium price on top of the existing high prices charged by highend competitors.

But Canada Goose first had to leave Canada to get people to pay a steep price for its products. In the early 2000s, Sam Tick's grandson Dani Reiss took the reins of the company and began selling Canada Goose products in Europe. And it was the cachet of "Made in Canada" that had Europeans willing to pay more for a Canada Goose jacket. Reiss noted, "For them a Canada

Goose jacket made in Canada was like a watch made in Switzerland.... Rolex is not going to move their production to China." Made in Canada became a marketable, bankable factor.

But moving to China is precisely what many clothing and outerwear manufacturers did. And Canada Goose took advantage of this by positioning themselves as the only truly Canadian alterative. Reiss believed that people would be willing to pay for an authentic, expertly crafted product.

Today, Canada Goose is at an important crossroads. Its growing popularity means that the early adopters are now starting feel as though the brand no longer belongs to them. But there is a huge market out there waiting to be targeted. One way to test a brand's presence in the market is to create brand extensions. 2 Canada Goose recently started making knitwear, mostly sweaters. The worldwide sweater sales market is growing at around 3 percent, while the outwear market has stagnated recently at below 1 percent.

You are asked to assess the knitwear (sweater) market for Canada Goose to determine if it's a viable market. This means you will have to search Canada Goose's offerings, along with those of competitors. Do a pricing analysis based on other marketing factors like economic and competitor forces. A brand extension is always a risk, so the information you gather will be important for Canada Goose to proceed in this market. You will need to use your marketing skill set to make sure that this goose is not cooked.

Question:

There are five Cs that a company takes into consideration when it decides to fix (or change) a price In the case of Canada Goose introducing a new line of knitwear, discuss how each of those factors would have an influence on the company's decision. Include personal anecdotes, statistics, and references to additional reading or materials. Reference your sources in appropriate provide substantive evidence of any claims that you make.

Reference no: EM133525665

Questions Cloud

How organisations work from a behavioural perspective : MM405 Advanced Organisational Behaviour, University of New England - Develop a more holistic grasp of the key role various OB concepts play in explaining
What failed within the organizations culture : What failed within the organization's culture? What was the impact of that cultural or ethical failure?
Selection of quantitative methodology : What considerations must be given to the selection of a quantitative methodology for a research study?
What type of future interest does jenna and barbara : What type of future interest does Jenna and Barbara? What type of multiple ownership will Jenna and Barbara have when they get the property?
Discuss how each of those factors would have an influence : discuss how each of those factors would have an influence on the company's decision. Include personal anecdotes, statistics, and references to additional
Quantitative methodology for research study : What considerations must be given to the selection of a quantitative methodology for a research study?
Feelings of depression or anxiety : What are SMART goals/objectives/interventions in a treatment plan for the problem of feelings of depression or anxiety?
Difference between child abuse and child neglect : Explain the difference between "child abuse" and "child neglect". When does corporal punishment constitute abuse?
Different definitions of insanity : Given the information in the case study presented and two different definitions of insanity, Explain what conclusions you can draw about legal definitions

Reviews

Write a Review

Marketing Management Questions & Answers

  Integrated marketing communication

Developing an IMC plan of Amazon that aims to create awareness and knowledge amongst Singaporean  consumers of the ethics involved in buying clothing made from Bangladeshi factories  .

  Multiple choice questions on e-commerce

The assignment in Computer Science or Information Technology is about multiple choice questions, particularly in e-commerce. Questions such as types of e-commerce websites, commercial websites, disintermediation, Platform for Piracy, the data that ca..

  Balanced scorecard for red lobster

The assignment in marketing is about Red Lobster, which is one US and Canada's most loved seafood restaurant. It has hundreds of outlets in US and Canada and it now wants to expand further. The approach adopted by Red Lobster has been discussed in fu..

  Marketing plan - marketing audit, swot and smart report

The assignment in marketing is about preparing a marketing plan. As part of marketing plan, the SWOT analysis, assessing the competitive position, identifying critical competitive issues, marketing objectives, strategy and actions have been suggested..

  Marketing plan

Marketing deals with preparing a marketing plan for either an existing product or a new product. Various aspects about launching a new product into the market are discussed ranging from the industry the product belongs to, goals and vision of the com..

  Yamato corporation analysis - harvard case study

Please refer to the PDF for the Case Study and questions.The case study from Harvard Business School is about Yamato Corporation, a parcel delivery company which provides door to door delivery in Japan.

  Marketing plan - create a new product

The assignment in marketing is about competitive analysis for a new product namely "heated insoles". These heated insoles can be put in shoes and they can protect the wearer's feet by keeping them warm during cold winters.

  Report on digital marketing strategy for a website

Promotion strategies of  the one's own developed website

  Integrated marketing campaign of mccafe

Integrated marketing campaign for McDonald's McCafe. McCafe has been launched in Canada. This is a case study which involves the use of digital marketing and social media marketing apart from regular marketing such as TV and radio. All these more are..

  New product development at adidas

In this paper, the researcher also determines the different kind of practices used by Adidas to manufacture shoes for its customers.

  Managing services in competitive environment

Services can be defined as separately identifiable, intangible activities which provide want-satisfaction when marketed to household consumers and/or industrial users.

  Prepare a marketing plan

A marketing plan is an essential tool for any marketer, providing direction for a brand, product or organization. A marketing plan describes the marketing environment, marketing objectives and marketing strategies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd