CASE STUDY

MOUNTAIN EQUIPEMENTCO-OP : THE PRIVATE LABEL STRATEGY

PRESENTED BY:

VISHNU SHARMA

ABHISHEK KAR

SHEKHAR KUMAR

CASE SYNOPSIS

• Private Label Strategy• Trust of stakeholders

• Positive perception in the customers

CASE FACTS

• Canadian sports market worth $7.5 billion

• Competition is very high

• Top 10 retailers have just half of the market share

• Independent store have good presence

• Forzani is the market leader

1. $1.6 billion annual sales

2. Popular brands that were worn by athletes

• Walmart and Canadian tire are other big competitors

FOUNDED IN August 1971 to provide gears for mountaineers and climbers

COMMITTED TO ENVIRONMENTAL PROTECTION

CONTINUED……….

• MEC has 15 store

• 3.6 million members

• 1387 employees

• Exclusive lifetime membership at $5

• Target market is mountaineers

• Takes 18 months for creating a product

• They diversified themselves into biking sector

PROBLEMS

• The Brand image was getting tarnished because of people’s perception.

• It was a democratically owned business.

• Technological and labour problems – Asian vs Canadian firm

• Competition from competitors

• Factory dependencies – Long term dependencies reduced flexibility

• Cost and wages

SPORTS GOODS SALES

2004 2005 2006 2007 20083200

3300

3400

3500

3600

3700

3800

3900

REVENUE IN MILLION $

REVENUE IN MILLION $

ACTUAL REVENUE ( ADJUSTED WITH INFLATION) 1.5%

2004 2005 2006 2007 20083200

3300

3400

3500

3600

3700

3800

3900

REVENUE IN MILLION $

REVENUE IN MILLION $

RECOMMENDATIONS

PHASE - I

MARKET RESEARCH

• WHAT YOU ARE GIVING

• WHAT CUSTOMERS NEED

• STOP VOTING, ONLY TAKE FEEDBACK, REACCESS AND DELIVER

CREATE A BUZZZZZZZZZZ

USE THE ATOM BOMB OF MARKETING

A.K.A

I.M.C.

PUSH STRATEGY

• GRAB RETAILERS

• DEVELOP RELATIONS

• PUSH STRATEGY

GO-ASIA & ISRAEL

• CANADA $20/HOUR

• ISRAEL $10/HOUR

• CHINA $.60/HOUR

• STOP USING CANADA FOR MANUFACTURING

PROPER PRICING PRODUCT BASE PRICE + FREE ACCECORIES =

PRICE AT PAR WITH WELL KNOWN BRANDS

REDUCE PATRONAGE REFUND• GIVE IN STEAD TO SALES FORCE.

• MAKE NO CAP ON INCENTIVE

• HENRY FORD STRATEGY

• MAKE THEM LOVE THE COMPANY (Zig Ziglar)

PHASE II

ITS CANADA

• PUT ICE-HOCKEY SPORTS GEAR FOR KIDS.

• TIE-UP WITH SILVER NANO-ABSORVENT FABRIC PRODUCERS.

• PEOPLE WILL BUY as per capita is $43,146.

HOLD THE GOLD ORE

• CATCH A GROWING PLAYER LIKE JERRY MAGUIRE DID.

PRODUCE 4 LACROSSE

• MANUFACTURE & BRAND IT ‘MEC’.

• LOW COMPETITION

• ONLY WARRIOR, STX & BRINE ARE THERE.

THANK YOU