Student ID: 7095822 Page 1 of 7
Canada Goose has shown excellent performance and numbers ever since Dani Reiss took over as CEO of the company in 2001. In the decade since, the company has registered an astounding 4000% growth leading many in the industry to deem Reiss as a visionary. Canada Goose has established strong markets in many European countries, especially the Scandinavian ones in addition to its home base in Canada. What is more surprising is that the company has been able to achieve such phenomenal success at the most meagre of marketing budgets – marketing including salaries accounted for 10% of Canada Goose’s total revenue. Organic marketing, including word of mouth marketing were the company’s biggest draws and speak volumes about the well-established brand’s loyalty and value amongst its customers. I would give the brand an excellent score of 9 on a 1 to 10 scale of brand strength. Through proper brand management, the company has been able to establish an aura of exclusivity around the brand – this is even more impressive when you consider that the brand had initially started out as a utilitarian brand, nowhere close to high end, luxury jacket manufacturers out there. By effectively using marketing tools, Canada Goose has indeed now become more of a status symbol for many and the demand for these sought after products has always outstripped supply by a mile. An example of how the management effectively were able to establish Canada Goose as a high-end, authentic brand is as follows – before Dani took over the company utilized product placement and would give bouncers outside bars who had to stand in the extreme cold all night their jackets but now the company has signed a sponsorship deal with Fairmont Hotels and outfits all the bellhops, greeters and doormen at every Fairmont Hotel in Canada Goose jackets. Not only does it help to strengthen the brand’s association with exclusivity but it also bolsters the association that Canada Goose has with Canadian Heritage and History. The fact that Canada Goose jackets never go on sale, even during big shopping events during Christmas, is proof of the brand’s tenacity. Like other luxury brands, for example Louis Vuitton – who has famously never gone on sale – Canada Goose jackets as well have never been sold for a discount. They are instead often sold at a premium by many of its retailers. The fact that there have been numerous attempts by large national retailers to order the company’s jackets, which were all turned down by the company is testament to the brand’s forte. Consistently good sales and a general increase in brand awareness has led the management to rethink its strategy and start stocking at national retailers as well. Canada Goose’s ability to combine jackets that were chic yet fully functional is the company’s differential advantage. The industry has many competitors, both high end brands which sell jackets at higher price points than Canada Goose and others that were driven by functionality and sold for lower prices. However the company felt unthreatened by both. An unlikely indicator of brand strength for Canada Goose would be the fact that the company is plagued by piracy and counterfeit issues. Although by itself it is a bad thing but it speaks volumes about the fact that the brand is popular and has a high enough demand that pirates want to mint money by using Canada Goose’s iconic brand. Student ID: 7095822 Page 2 of 7
The fact that these jackets are made in Canada are another aspect that add to the brand’s strength. This appeals to the locals by inciting patriotism and for international customers it adds to the products authenticity – who would no winter outerwear better than Canadians? Once a brand has orders coming in, products being sold at higher prices than the MSRP, repeat orders during one season and organic band expansion to international markets it means that the brand is fully developed on a sound and stable footing. Canada Goose has achieved just that. Brand loyalty is at an all-time high, people think it’s chic and fashionable to wear the company’s jackets and even the company’s round logo with a map of the Arctic is extremely popular. Reiss and his team have indeed developed an enviable brand in Canada Goose and from here there is only one way to go to – forward. Question 2
Canada Goose is truly at an enviable position at this point in time. The brand commands excellent sales, has immense awareness and demand for its products actually is far more than the supply. There are certain advantages that come along with such brand strength, I’ll discuss three of these in what follows. Ability to Innovate
The company has shown excellent numbers ever since Reiss took over as CEO and is financially in a position to reinvest profits into developing n...