This case study examines Mountain Equipment Co-op's (MEC) strategy to develop private label brands. MEC is a Canadian outdoor retailer founded in 1971 that is member-owned. It faces high competition from large retailers and independent stores. MEC had 15 stores, over 3 million members, and $3.8 billion in annual revenue by 2008. However, its brand image was becoming tarnished and it faced challenges from competitors. The recommendations propose that MEC conduct market research, launch an integrated marketing campaign, source manufacturing to lower-cost countries like China and Israel, properly price private label products, and develop new product lines tailored for the Canadian market like hockey gear and lacrosse equipment.

1. CASE STUDY
MOUNTAIN EQUIPEMENTCO-OP :
THE PRIVATE LABEL STRATEGY
PRESENTED BY:
VISHNU SHARMA
ABHISHEK KAR
SHEKHAR KUMAR

2. CASE SYNOPSIS
• Private Label Strategy
• Trust of stakeholders
• Positive perception in
the customers

3. 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

4. FOUNDED IN August 1971 to provide gears for
mountaineers and climbers
COMMITTED TO ENVIRONMENTAL
PROTECTION

5. 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

6. 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

7. SPORTS GOODS SALES
3200
3300
3400
3500
3600
3700
3800
3900
2004 2005 2006 2007 2008
REVENUE IN MILLION $
REVENUE IN MILLION $

8. ACTUAL REVENUE ( ADJUSTED WITH
INFLATION) 1.5%
3200
3300
3400
3500
3600
3700
3800
3900
2004 2005 2006 2007 2008
REVENUE IN MILLION $
REVENUE IN MILLION $

9. RECOMMENDATIONS
PHASE - I

10. MARKET RESEARCH
• WHAT YOU ARE GIVING
• WHAT CUSTOMERS NEED
• STOP VOTING, ONLY TAKE FEEDBACK, REACCESS AND DELIVER

11. CREATE A BUZZZZZZZZZZ
USE THE ATOM BOMB OF MARKETING
A.K.A
I.M.C.

12. PUSH STRATEGY
• GRAB RETAILERS
• DEVELOP RELATIONS
• PUSH STRATEGY

13. GO-ASIA & ISRAEL
• CANADA $20/HOUR
• ISRAEL $10/HOUR
• CHINA $.60/HOUR
• STOP USING CANADA FOR MANUFACTURING

14. PROPER PRICING
PRODUCT BASE PRICE + FREE ACCECORIES =
PRICE AT PAR WITH WELL KNOWN BRANDS

15. REDUCE PATRONAGE REFUND
• GIVE IN STEAD TO SALES FORCE.
• MAKE NO CAP ON INCENTIVE
• HENRY FORD STRATEGY
• MAKE THEM LOVE THE COMPANY (Zig Ziglar)

16. PHASE II

17. 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.

18. HOLD THE GOLD ORE
• CATCH A GROWING PLAYER LIKE JERRY MAGUIRE DID.

19. PRODUCE 4 LACROSSE
• MANUFACTURE & BRAND IT ‘MEC’.
• LOW COMPETITION
• ONLY WARRIOR, STX & BRINE ARE THERE.

20. THANK YOU