Canada Goose price and product life cycle PDF

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Canada Goose has started as a brand of functional down jackets that is suitable for really cold weather. But nowadays they make clothing that is driven more by fashion than by its warmth and patented technology. In the beginning, they very focusing just on one target market – explorers and artic workers. Those clothes were just about keeping scientists warm during work at South Pole and North Pole. That is why parkas look and colors were limited.

Of course, nowadays their reputation remains important, but as Reiss says , “The company is capitalizing on its status as a high-fashion brand”. They are also producing different types of clothes including pants, light coats and spring jackets [3]. TAGET MARKET Canada Goose demographic segmentation includes men and women between age 20 and 45 with sufficient household income, different occupations, and it definitely does not take into account from what country they are originally, as soon as those people are living in a country which experiences winter and cold weather. Psychographic segmentation is concentrated mostly on working, middle or upper class, on people who are outdoors type, like are active, adventurous and creative. Behavioural segmentation: for regular occasion, special occasion, and seasonal; brand offers high quality products for people who will stay with the company for their lifetime and will be completely loyal. Canada Goose could move and do manufacturing in Asia, which could decrease expenses on producing clothes, as most of other companies did, but they stayed in Canada. Reiss saw an advantage in staying in Canada, because Canada Goose was one of just a few companies which decided to not leave the country. One of the advantages is that their clothes became an authentic, 100% produced in Canada, and that is the main factor why people can pay more for those parkas. Reiss was right. Over the past decade, Canada Goose’s growth rate was more than 4,000 percent.

PRODUCT LIFE CYCLE

From 1950s to 2017, Canada Goose brand has taken huge steps in its sales revenue with its profits. After developing its new product, Canada Goose established its parka product at first step. Now, the brand is adding new products on its product line. For last ten years, the brand has launched the new products in apparel sector such as, lightweight parkas, jackets, gloves, hats and latest knitwear products with coming of 2017 [6].

Parka: The brand is currently in its maturity stage for parka products. Because, the brand has sold parka products from its establishing until now. The brand is trying to sustain its sales by adding new features to existing ones and differentiating its design. The main reason why parka products are considered in its maturity stage for Canada Goose brand is all about product’s stylish feature. Because, if a product is style, it has long lasting usage. In other words, parka is a style product as it is considered always trend. Lightweight parkas: These products are its on growth stage as the company launches them in last decade. Jackets, gloves, and hats: They can be considered in its growth stage as it is already finished with introduction. Knitwear: This product line has already been launched by the firm in the beginning of 2017. Knitwear products are very new and so it is on introduction stage.

PRICE The brand’s first attempt to produce its parkas was for the scientists who faced harsh winter conditions in Antarctica. With this conception, the brand was considering producing high quality products in harsh conditions and satisfying customer’s expectations (buyers’ perceptions) so was using the highest quality materials, which costs high and so seemed following value-added pricing strategy. By the time, the company added competition- based pricing strategy with the production of new lightweight products, which is based on competitors’ price per product. In comparison of Canada Goose with the other well-known apparel industry brands, the pricing is seemed always higher. Moose Knuckles has a similar value-added pricing strategy while creating expensive parkas. Even if Freed and Freed’s prices are higher than the average with goodvalue pricing strategy, it is hard to reach Goose’s expensive pricing. Rudsak considers high quality products with having various products ranged from jackets to bags by following good-value pricing strategy. The prices for men parkas starting from 900 dollars for Canada Goose and Moose Knuckles brands. The pricing strategy is very appropriate for Canada Goose brand. Because, customer satisfaction is always considered prior and so the company creates high quality products with high costs consequently priced with high amounts. Canada Goose is on the right track for its pricing strategy. Because, the brand sets high prices as always been from when it has established for its parka and heavy-jackets. On the other hand, the brand sets the prices for light weight jackets lower than their parka and heavy jackets.

Moreover, for its hats, gloves and knitwear are set the lowest prices, while they are considered as everyday used products.

Two advertising types should be applied to Canada Goose in order to meet its objectives: Canada Goose should offer some sales campaigns with certain discounts, in special days for the country such as religious days, national days, new year etc, that can be applied to products that are in introduction or growth cycle to promote them. These discounts should be announced only in stores or social media since those kinds of campaigns sometimes harm brand’s image and brand’s ability to sell products with high prices. However, the most integral part of the advertisement is to convey message to customer that there is a sales campaign with significant discount in this specific store. The discount rate and the products that will be exposed discounts should be stated clearly in the ad. Therefore, this persuasive advertising objective might increase Word of Mouth to help products which are in introduction or growth stage to reach out its maturity as more people use those lightweight parkas, jacket, gloves, hats, knitwear etc.. Apart from recently launched products, company should also ensure the sales of its current products that are already reached the maturity. To prevent those products from decline in sales, Canada Goose should maintain its brand image in the eyes of people so that they would prefer Canada Goose when they need to purchase a new parka. Since they have currently lots of loyal customers who prefers Canada Goose in terms of winter coats; the company should use a media intermediary which enables Canada Goose to reach masses at low cost exposure . Therefore, the mass media advertising might be the most beneficial way for company to achieve this goal. Moreover, the ad does not have to contain information as the purpose of this advertisement is to remind the brand as many people as possible. Thus, this ad should contain only the brand name and the types of products that Canada Goose offers. In other words, the company should be chasing for reminder advertising objective to meet its sustainable brand image goal....