Marketing Assignment Presenting Market Analysis for Canada Goose

Question

Task: In this marketing assignmentyou are being asked to: 1. Conduct an external analysis of the market in which Canada Goose competes in Canada and report your findings. This analysis must comprise 4 parts:
1. Name the broad-product market in which the Canada Goose competes and comment on the characteristics of this market.
2. Comment on the broad environmental factors influencing future market health.
3. Identify one key competitor for Canada Goose and comment on its competitive strategies (Value proposition and 5Ps).
4. Describe a segmentation model for the broad product-market in which Canada Goose competes (the narrow product-markets (submarkets) within this broad product-market). Your answer should identify qualifying and determining dimensions and customer-related characteristics for each submarket and be in the form of a table similar to Exhibit 4-12:
Segmenting the Broad Product-Market for Motel Guests in a Large Urban Area in the article in the course kit: Focusing Marketing Strategy With Segmentation and Positioning.

2. Conduct a thorough internal analysis of how Canada Goose competes within this market and report your findings. Your commentary should convey an understanding of the following aspects (if the information is publicly available or these aspects are observable): Canada Goose A) heritage, mission, vision, values, key leadership, culture, core capabilities (assets and competencies) value proposition, and any recent changes in strategy B) marketing mix (a detailed review of its product, pricing, place, promotion and people strategies) and how recent changes in strategy are informing its marketing mix.

3. A SWOT Analysis. Opportunities and threats will be derived from the external analysis and strengths and weakness from the internal analysis. Based on this analysis recommend one new opportunity for Starbucks to exploit.

Your key findings must be supported through referencing sources in a one-page appendix to your assignment. Your research for this assignment should include a thorough review of publicly available information on the Internet and from other sources, and your personal observations from visits to online and retail locations and those of its competitors. In keeping with academic rigour, insights and paper contents must be your own.

Answer

Marketing Assignment Point 1: External Analysis
1. Characteristics of the market
The Canada Goose operates in Toronto, Montreal, Vancouver, and Calgary in Canada and it has been operating more than 11 company stores across the three continents that serve in certain premier locations that exhibits the brands’ authenticity as well as 60 years of experience. The threat for the new entrants is significantly high in the market, thus ensuring minimal obstacles imposed by the new companies operating in the market segment. The bargaining power of the suppliers is low because there are many suppliers in the market to supply the woollen raw materials whereas the threats of substitute products have a higher impact on the market. As opined by Mix & Brand (2017), the bargaining power of the buyer is medium, since the company offers unique jackets and coats, offering protection against biting cold as well as against airflow, the availability of which is not very widespread in the market, thus limiting the choices of the customers. The markets wherein Canada Goose operates are highly competitive, which necessitates that the company should continuously offer innovative products to the customers, to positively engage them with the company. Some of the main competitors of the company are North Face, Moncler and Jesse's New York.

2. PESTLE analysis

Table 1: PESTLE analysis
Source: (Developed by the learner)

3. Main competitor, its value proposition and marketing mix
One of the main competitors of Canada Goose is North Face and the value proposition of the company is that it offers the expensive products with a spirit of being fashionable within a sporty style along with being of superior quality with having classy attributes and superior relationship with the customers. Thus, the 5P’s strategy of North face are: Product: The Company sells commodities under 5 categories with each serving as the separate product lines (Ismaeelzadeh, Piri, &Tavakkol, 2017). Price: The Company follows competitive pricing strategy; it uses product-bundling price and offers a higher price for products being sold online.

Place: Sells products through online marketing, wholesalers as well as retail chains, among the eminent cities like Vancouver, Montreal, London and Calgary, among others. The Company follows omni channel distribution process along with having a network of more than 500 suppliers to provide them with raw materials.

Promotions: The Company uses multiple media channels for promoting its product and advertises in various social media channels as well as in traditional media. It undergoes various sales promotional strategies, personal selling, and utilises the percentage of selling method (Hagman, Segerqvist & Wahlström, 2017).

People: The Company has people working within its sales and marketing department, customer service department. It has people working with the supplier to obtain the raw material as well as within the retail stores to help the customers to choose products.

4. Segmentation model for broad product market in which Canada Goose operates

Table 2: Market segmentation of Canada Goose
Source: (developed by the learner)

POINT 2: Internal Analysis
A. Heritage: The company came into being in the year 1950 and was known as Metro Sportswear as founded by Sam tick and thus, by moving to Canada within the decade, the founder founded the company Canada Goose that specialises in professional cold wears such woollens, jacket, snowmobile suits and raincoats.

Mission: The Company keeps 100% of its production at home and are committed to outstanding craftsmanship and believes it to be critical for the integrity of the Canada Goose and the quality of their product.
Vision: The company is committed to freeing individuals from the cold as well as creating the immersive culture for great values, accountability, entrepreneurship, respect, passion, and innovation.

Value: the company embraces diversity in all of its definitions and forms and they strive in creating an inclusive culture in which individuals could live authentically and are looking for those who take up the initiative and think creatively.

Key leadership: The company leaders follow democratic leadership style where the opinions and views of each of the individuals, working within the company are considered in the decision-making process.

Culture: The company follows a high level of ethical standards with a strong focus on culture with having enormous opportunities to try something new and do meaningful work. Core capabilities: The tidal asset of the company is 784.59 million in March, 2020 and the core competencies are its uniques marketing strategy of Made in China, the strategy that sticks around the perception that they are the champion in it and thus, the people are appreciating that. Value proposition: The value proposition of Canada Goose is to provide value to the investments made by the customers, for buying their products, while staying true to Canadian heritage

Recent changes in strategy: For catering to the value proposition, Canada Goose decided to ‘Go-Retail’ recently, setting up brick and mortar stores in many locations, as a way to enable the customers to visit the shops and explore the products, both in national as well as International locations

B. Marketing Mix
Products: It allows its customers to choose from wide varieties and all of the products are sold under the brand name with separate lines of products. As opined by Esteban-Santos, Medina, Carey & Bellido-Pérez (2018), the products are of highly differentiated features and characteristics and are considered as unique with high quality as well as traditional designs, which are comfortable for daily use.

Price: The company usually utilises premium pricing strategy for its high-quality products. However, while catering to the new value proposition, the company is planning to follow competitive pricing strategy, as a measure to cope with the changed organisational strategy.

Place: Follows an intensive marketing strategy along with a havoc good amount of sales online with frequent traffic on their websites. It also follows the omni channel distribution process like the North face.

Promotions: It uses both the traditional and social media marketing for reaching out to customers of all ages. In order to cope with the changed strategy, the company plans on resorting to celebrity endorsements for advertisements, for being broadcasted over television as well as social media as well as offering one-time promotional offers for customers, encouraging them to shop from the brick-and-mortar stores

People: The people in sales, customer service and purchasing department, plays a major role in delivering value to the customers. The company values the needs and demands of the customers as well as their employees equally, to stick to the ethics (Xharavina, Kapoulas, &Miaoulis, 2019).

POINT 3: SWOT analysis

Table 3: SWOT analysis
Source: (developed by the learner)

Recommendation for Canada Goose, based on SWOT analysis
Since Canada Goose is planning for expansion into many other winter markets like Germany and Austria and it already possesses an interactive website, to provide value to the customers, they can research into the style preferences of the millennial population as well as the other target customers in the proposed markets. This would enable the company to conclude on the kind of stylish woollen products the customers usually prefer to wear, in those markets. Next, the company can resort to ‘cruelty-free’ foam and other artificial materials to design the woollens, retaining the stylish nature of the products, while delivering quality products to customers in those market segments. The traditional designs of the woollens, which the company values so much, can be set as an entirely different ‘vintage’ range, for customers preferring the olden looks and feels of the products offered by the company, especially in the age range of 55 years- 65 years, in national as well as international markets.

Reference
Esteban-Santos, L., Medina, I. G., Carey, L., &Bellido-Pérez, E. (2018). Fashion bloggers: communication tools for the fashion industry. Journal of Fashion Marketing and Management: An International Journal.

Hagman, O., Segerqvist, I., &Wahlström, S. (2017).Credibility of Green Marketing in the Fast Fashion Industry. Henninger, C. E., Alevizou, P. J., & Oates, C. J. (2017). IMC, social media, and UK fashion micro-organisations. European Journal of Marketing, 51(3), 668-691.

Ismaeelzadeh, M. R., Piri, M., &Tavakkol, M. (2017). A Survey of the Effects of Relationship Marketing Strategies on Shopping Behavior in Sports Clothing Shops.

Laras, T., Dwiwinarno, T., Kuswantoro, F., &Najmudin, M. (2019, July).Relationships among Marketing Variables (Study of fashion and culinary industry).In International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018).Marketing assignmentAtlantis Press.

Mix, M., & Brand, C. B. (2017).Marketing management.

Sari, H., &Nurhadi, D. A. (2019).Designing Marketing Strategy Based on Value from Clothing-producing Companies Using the AHP and Delphi methods. JurnalTeknikIndustri, 20(2), 191-203. Xharavina, N., Kapoulas, A., &MiaoulisJr, G. (2019).Netnography as a marketing research tool in the fashion industry in Southeast Europe. International Journal of Market Research, 1470785319859210