Recommendation
Accepting the Levine’s Menswear offer will come with several benefits to Canada Goose. Canada Goose will benefit since Levine’s is rated higher than Asmun’s in terms of profitability and market share. First, the company will have the opportunity to expand the regional reach by reaching several new locations. This will see the company reach many potential customers and increasing their sales and profitability tremendously. In addition, the company will enjoy the benefit of increasing the types of their productions due to increased distribution channels. By accepting the Levine’s Menswear offer, the company will easily expand their brand image across the country through increased brand visibility. In this way, the company will keep or increase their brand name. The other advantage that Canada Goose brand will enjoy is that Levine’s is willing to maintain a positive relationship with their clients.
Action Plan
Short term
Long term
Expand their products to women brands
Increase their production capacity to cater for increased demand
Create their own stores to avoid potential conflicts with independent retailers
Contingency Plan
The contingency plan is to continue with their normal distribution with its current independent retail distributors and not to add any national retail chains. This will help the company to maintain a positive relationship with their long-term loyal customers and maintain their brand image. In this manner, the company will not face any risk devaluation of their quality brands. Furthermore, the company will benefit by increasing their understanding of the distribution channels and enhancing their sales accordingly. All these benefits will come at no additional costs to the company.
Reference
