Mountain equipment coop case study

The Private Label Strategy

By Ansh Aggarwal

CASE SYNOPSIS

Brief overviewCompany GoalsCurrent position

Canada- Sports goods Market- $7.5 billion-2008

Major players: Wal-Mart, Canadian Tire, Forzani.

MEC formed in 1971, providing gears for mountaineering, rock climbing, ski touring &hiking.

Membership at $5 with the Advantage of “Patronage return”.

Goals: Increase participation in self propelled

wilderness-oriented recreation. Emphasis on Outdoor recreation

opportunities. Bring change in Environmental, social &

Economic sustainability. MEC brands produced eco-friendly

products in 63 factories in 15 countries.

What’s Next?

Presently loss of trust among shareholders due to shift of production from Canada to other countries.

Loosing on its primary objectives: ethics, quality goods, Competitive pricing.

Have got mixed reviews on different forums but people are their to support the co-operative.

INFERENCES

Market GrowthMEC market Share ComparisonMEC production UnitsProducts overview

2004 2005 2006 2007 20080

2000

4000

6000

8000

10000

12000

14000

16000

6887 7000 7409 7494 7572

3825 3920 4068 4140 41991360 1279

1388 1378 13961702 1800

1953 1977 1977

FootwearApparelEquipmentSporting Sales Goods

Canadian Sporting Goods in $ million-year growth-2.4%

2005 2006 2007 20080.00%

5.00%

10.00%

15.00%

20.00%

25.00%

18.20% 18.90% 19.60% 20.20%

11.60% 12.60% 12.00% 11.40%

6.90%9.50% 9.50% 9.90%

0.90% 1.00% 1.20% 1.20%

Overall Market Share

Forzani Canadian Tire Walmart MEC

33.82%

30.24%

22.28%

3.85% 3.85% 3.67%

0.65%

MEC- Branded Products

ChinaCanadaVietnamIndiaThailandTaiwanUSA

PRODUCT LINE:

Cycles Jackets Climbing Shoes Back Packs Haul Bags

PROBLEM DEFINITION

Lack of Originality in the Product line.

Creation of Negative perception in the minds of the Consumers.

Shifting of Basic beliefs in the Cooperation to more profit oriented organization.

What to do Now?

RECOMMENDATIONS

Need to shift from just Stereotypical Organization to serve for the goodwill of the people.

Need to deliver its own product line. Focus on its Core strengths of Quality :

ethics, quality Goods and Competitive prices.

Promotion through Word-of–mouth with its pre-existing customers.