Mountain Equipment Co.Op.

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Information about Mountain Equipment Co.Op.

Published on April 23, 2014

Author: sukumarperneti



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.


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

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%

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

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.

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:

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

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.

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

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

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

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