Canterbury Case Study

CURRENT STATE

Canterbury of New Zealand is a New Zealand based apparel company. Canterbury was established in 1904 and is currently owned by JS Sports in the United Kingdom with their parent company being the privately owned global business – Pentland Brands. The Australia and New Zealand (ANZ) Head Office is based here in Auckland, New Zealand, servicing both the New Zealand and Australian retail and wholesale to retail market. Canterbury has a very sound client base covering both the sports retail market as well as an experienced established teamwear and sports-licensed apparel business.

In Australia, Canterbury has adopted an agent model to service the wholesale accounts, whilst in New Zealand Canterbury had employed sales representatives to service the New Zealand market.

ISSUES

  • The resignation of both the North Island and South Island Canterbury representatives in New Zealand were tendered.
  • The current account base could not be managed and serviced in both the North and South Islands until the recruitment process was completed.
  • The resources to implement the recruitment process, re-hire, and then retrain were estimated to be at least a 6-to-8-month process.
  • The considerable wage cost of company employees and the impact on profit and loss reporting were investigated and considered.
  • A due diligence review of the New Zealand territories determined that there was much potential for sales growth.
  • The ANZ Director of Sales (DoS) met with the Canterbury of New Zealand Board pitching the idea of exiting from the employee-based sales representative model to move to an agency sales model like that operated in Australia.

ACTIONS
STEPS/ SOLUTIONS

  • Upon signing off the revised concept – the Director of Sales then approached PJC Agencies Ltd to discuss the opportunity that PJC service the Canterbury of New Zealand accounts across the North Island initially and then eventually the South Island.
  • The DoS and I analysed the opportunity by:
    • reviewing the overall sales
    • considering the opportunity from a sales perspective
    • the growth potential
    • the territory and its servicing requirements
    • the Canterbury of New Zealand range and marketability
    • Canterbury of New Zealand
    • Canterbury of New Zealand’s expectations of PJC Agencies Ltd and its fit to the brand
    • what value PJC Agencies could offer Canterbury of New Zealand and its business.
  • Canterbury’s DoS conducted a full review of my services, my existing contact base, my reputation within the industry, and PJC Agencies’ ability to fulfill what was required to service Canterbury’s entire New Zealand market.
  • The DoS then presented his proposal to the Canterbury Board where they agreed on a contract with PJC Agencies Ltd.

RESULTS

  • Currently, PJC Agencies Ltd is now the exclusive Agent for Canterbury of New Zealand and its accounts across both the North and South Islands of New Zealand.
  • PJC Agencies Ltd’s contract with Canterbury of New Zealand commenced on 1 July 2021 and will be reviewed annually