PRESENTED

BY

P. SUKUMAR

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

F O R Z AN I T O T AL C O S T C O T H E B AY F O O T L O C K E R M E C

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-operationCreativity

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