CASE STUDY MOUNTAIN EQUIPEMENTCO-OP : THE PRIVATE LABEL STRATEGY
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CASE SYNOPSIS
• Private Label Strategy
• Trust of stakeholders
• Positive perception in the
customers
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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
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FOUNDED IN August 1971 to provide gears for mountaineers and
climbers
COMMITTED TO ENVIRONMENTAL PROTECTION
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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
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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
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ACTUAL REVENUE OF SPORTS GOOD (ADJUSTED WITH INFLATION) 1.5%
3200
3300
3400
3500
3600
3700
3800
3900
2004 2005 2006 2007 2008
REVENUE IN MILLION $
REVENUE IN MILLION $
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RECOMMENDATIONS
PHASE - I
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MARKET RESEARCH
• WHAT YOU ARE GIVING
• WHAT CUSTOMERS NEED
• STOP VOTING, ONLY TAKE FEEDBACK, REACCESS AND DELIVER
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CREATE A BUZZZZZZZZZZ
USE THE ATOM BOMB OF MARKETING
A.K.A
I.M.C. AKDJ'S PRESENTATIONS
PUSH STRATEGY
• GRAB RETAILERS
• DEVELOP RELATIONS
• PUSH STRATEGY
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GO-ASIA & ISRAEL
• CANADA $20/HOUR
• ISRAEL $10/HOUR
• CHINA $.60/HOUR
• STOP USING CANADA FOR MANUFACTURING
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PROPER PRICING PRODUCT BASE PRICE + FREE ACCECORIES =
PRICE AT PAR WITH WELL KNOWN BRANDS
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REDUCE PATRONAGE REFUND • GIVE IN STEAD TO SALES FORCE.
• MAKE NO CAP ON INCENTIVE
• HENRY FORD STRATEGY
• MAKE THEM LOVE THE COMPANY (Zig Ziglar)
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PHASE II
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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.
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HOLD THE GOLD ORE
• CATCH A GROWING PLAYER LIKE JERRY MAGUIRE DID.
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PRODUCE 4 LACROSSE
• MANUFACTURE & BRAND IT ‘MEC’.
• LOW COMPETITION
• ONLY WARRIOR, STX & BRINE ARE THERE.
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THANK YOU
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THANK YOU
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