Mountain Equipment Co-opThe Private- Label Strategy

Presented By: Bhavesh Bhansali

Case SynopsisThe case talks about how MEC as a brand is fighting for it’s own Private Label brandMountain Equipment Co-op

MEC was founded in 1971 in

Vancouver, Canada

Retail Co-operative

15 stores

1387 Employees

$248 millions in 2008

Serves Sports products• Mountaineering• Rock climbing• Ski touring• Hiking, etc…

Market Share-1.2%

Some more facts Top players

FORZANI- 20%

CANADIAN TIRE- 12%

WALMART- 10%

China36%

Canada32%

Veitnam24%

India 4%

Thailand4%

Percentage

Suppliers for MEC branded products

13,000+ separate products are available for purchase at MEC.

50% of In-House branded products in the stores

Anyone can become a member of MEC. lifetime fees- $5

Problem Definition

How to launch and develop innovative Private Label products

People’s perception of MEC as a Second Wal-Mart

More of Asian Supplier

Objective ofmonopolizing the market

It takes more than 18 months for a Product to be placed in stored shelf

Change the Perception of Copy Paste

+

Case Inferences

MEC’s works on this Philosophy

Quality

Integrity

Co-operation

CreativityLeadership

Sustainability

Adventure

Market share UP-DOWN of Key players

• Forzani• Canadian Tire• Wal-Mart• MEC• Independent Stores

Players 2007 2008

19.6129.51.240.4

20.211.49.91.240.8

Recommendations

Heavy promotions for Private- Label brands

Sponsorship to sporting events at local levels

Engage a technology for faster product development

Low- pricing and high penetration

Merchandise the Private

label products with

independent stores for better

penetration

Associate the company with a

event

Thank You!!!