This presentation explains about the canadian sports industry and well about the MEC brand and how they overcome the negative impression in the public and their strategies used to achieve their goals.

1. PRESENTED
BY
P. SUKUMAR

2. Brand Vision: Design with great quality and to build trust within the
members and to inspire the user to enhance their experience through
the continuous improvements with technology
Coming with new line up of bikes
50% of their shelves are covered with MEC branded items.
Life-time membership for just $5
Large retail stores
•e.g. Forzani, Canadian tyre,
Walmart
Independent stores
•MEC, The Bay etc.
Case facts

3. Canadian sports industry=7.5billion/year
Trends:
• Walmart’s increasing leadership in entry level products
• Lower value sporting goods
• Relative market share between “A Ware house club, Costco, MEC and
market leader Forzani with 20%

4. 18.2
1.5
1.2
1.5
0.9
18.9
1.8
1.7
1.6
1
19.6
2
1.4
1.7
1.2
20.2
2.1
1.5
1.6
1.2
FOR ZAN I T OT AL COST CO T H E BAY FOOT LOCK ER M EC
2005 2006 2007 2008
Canadian Market Share By Competitor
38%
62%
2008
MEC
Others
Out of 165 millions purchases in 2008 38% raw materials
used to manufacture MEC brand goods

5. Why MEC
Started with few young climbers in the mountains, who dreamed of outdoor
gear that wouldn’t let you down at prices that wouldn’t break your budget.
Asia was the largest manufacturer of MEC-Branded products.
China+Canada+Vietnam = 86.38% of the total production.

6. Copied brand
More time to develop
the product
Failed to retain
surplus earnings
1. Technology & Labor
2. Factory dependencies
3. Cost & wages
Selling at low price
Case problems:

7. Private label@ lower-
price and earned higher
margins
FORZANI
20% industry share of worth $1.6billion.
Mountaineering, canoeing
camping
Young adults
or students
Independent
stores
Niche
market
High-end
products@
higher
prices
Employs
active
participants
Sponsors teams and
organized events
ANALYSIS

8. Revenues: $248 million through physical and
virtual media in 2008.
They mainly focused on hiking, camping,
climbing, snow sports and water sports
GOALS of MEC
Self
propelle
d
wilderne
ss
Change in
environment
& economic
, social
Creation &
stewardship
Business model
Undercut>copy>manufacture>price-out>replace as new product.

9. Philosophies of MEC
Stewardship
Sustainability
Leadership
Adventure
Co-operation
Creativity
HumanityIntegrity
Quality

10. Performance
3.6% • Sales
492% • Profit
-1.34%
Patronage
Return

11. Conclusion
• Quick launch of products, so that they can
overcome –ve impression in the public.
• Globalization of the brand.
• Increase the brand awareness through social media.
• As Patronage return shows negative they have to sponsor for
main events which can be beneficial to them