Case Study Analysis
Table of Contents
Introduction 2
Situation Analysis 2
Mountain Hardwear: the Brand 4
Identification of Issues 4
Alternative 1: to distribute through REI 4
Possible Short Term Issues: 4
Possible long term issues: 5
Implications for the brand: 5
Alternative 2: to not sell through REI 6
Possible issues: 6
Implications for the brand: 7
Recommendations 7
Addressing brand dilution 7
Addressing relative retailer power 8
Implementation 8
Resources Required: 8
Time frame: 8
Performance measurement: 9
Conclusion 9
References 9
Introduction
In 1993, a number of employees in Sierra Design decided to start their own outdoor apparel company. They capitalized on their expertise in the field and with the support of an investor, Ian Cummings they established Mountain Hardwear. Built as an ultra-premium brand focused on elite high altitude mountaineers that would promise uncompromising performance, the company captured a niche market over the next few years. Mountain Hardwear is a classic example of a company that has used various elements of the marketing mix in synergy to build a strong brand. (Spitzer, 2006) Situation Analysis
A common model used to understand the situation of an organization is the SWOT. This model evaluates internal characteristics –Strengths and Weaknesses as well as external factors which describes opportunities and threats. Below is the SWOT Analysis for Mountain Hardware in the year 1999.
STRENGTHS
• Image of being elite and authentic
• High product quality
• Technical manufacturing skill
• Management expertise
• High customer satisfaction with the perception the it is a brand that provides uncompromising performance
• Loyal customer base
• Effective Promotion with a combination of PR and expert endorsement
• Strong distribution channel support
• Built Strong and valuable relationships
• Good financial performance, remained profitable from 1996 WEAKNESSES
• Niche product portfolio which makes it
Introduction 2
Situation Analysis 2
Mountain Hardwear: the Brand 4
Identification of Issues 4
Alternative 1: to distribute through REI 4
Possible Short Term Issues: 4
Possible long term issues: 5
Implications for the brand: 5
Alternative 2: to not sell through REI 6
Possible issues: 6
Implications for the brand: 7
Recommendations 7
Addressing brand dilution 7
Addressing relative retailer power 8
Implementation 8
Resources Required: 8
Time frame: 8
Performance measurement: 9
Conclusion 9
References 9
Introduction
In 1993, a number of employees in Sierra Design decided to start their own outdoor apparel company. They capitalized on their expertise in the field and with the support of an investor, Ian Cummings they established Mountain Hardwear. Built as an ultra-premium brand focused on elite high altitude mountaineers that would promise uncompromising performance, the company captured a niche market over the next few years. Mountain Hardwear is a classic example of a company that has used various elements of the marketing mix in synergy to build a strong brand. (Spitzer, 2006) Situation Analysis
A common model used to understand the situation of an organization is the SWOT. This model evaluates internal characteristics –Strengths and Weaknesses as well as external factors which describes opportunities and threats. Below is the SWOT Analysis for Mountain Hardware in the year 1999.
STRENGTHS
• Image of being elite and authentic
• High product quality
• Technical manufacturing skill
• Management expertise
• High customer satisfaction with the perception the it is a brand that provides uncompromising performance
• Loyal customer base
• Effective Promotion with a combination of PR and expert endorsement
• Strong distribution channel support
• Built Strong and valuable relationships
• Good financial performance, remained profitable from 1996 WEAKNESSES
• Niche product portfolio which makes it
References: Keller, K. L. (2007). Strategic Brand Management. Pearson Prentice Hall. Kotler, P., & Keller, K. L. (2006). Marketing Management. Pearson Education. Spitzer, J. (2006). Mountain Hardware: Early Years. Standford Graduate School of Business.