With almost $250 million in annual sales, Mountain Equipment Co-op can afford to hire a celebrity athlete or two to hawk its lineup of outdoor clothing and equipment.
However, the iconic retailer would rather sponsor activities such as Ontario’s Tour de Greenbelt, a family-oriented cycling event that offers a marshalled tour route through the countryside with stops at farms, wineries and historic sites.
A big name sports star and slick ad campaign would probably boost sales in the next quarter, but MEC focuses on the long term, says chief executive officer David Labistour. And that means luring Canadians off the couch and into the outdoors.
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MEC has 2.9 million members and robust sales, but Labistour is deeply worried about the ever-growing number of Canadians turning their backs on our country’s natural splendour and spending their leisure hours in front of the TV.
“We believe that outdoor activity of all kinds is at risk,” says the South Africa native, who mountain bikes, backcountry skis and snowboards.
“You can spend a lot of money on a high-profile athlete, or spend money encouraging people to get outdoors, to connect with local clubs and organizations, and to acquire skills in outdoor activities such as kayaking, hiking or cycling.”
There’s a parallel here for farmers, especially those direct marketing their produce.
They’re bucking a related trend: Canadians turning their backs on the country’s abundance of fresh whole food in favour of cheap, highly processed fare. When they do get off the sofa and head into the kitchen, they’re more likely to pop something into the microwave than haul out the pots and pans like Grandma used to.
Could MEC’s marketing approach work for them?
Like farmers, MEC is up against cheap foreign imports. The company demands its products be well crafted from quality materials and that its Third World suppliers treat their employees well. This is not an approach that lets you take the lowest-price-is-the-law route.
So while spending major dollars on events such as Paddlefest should create new customers, it won’t necessarily benefit MEC. The event is held in the nine cities where MEC’s 12 stores are located to encourage people to take up canoeing and kayaking, but the new paddlers may just shop at a low-cost competitor.
Labistour concedes that putting money into events such as Paddlefest and the Tour de Greenbelt doesn’t guarantee an immediate payoff, but that’s OK with him.
“Everyone is focusing at the short-term, and that’s especially true given the current economic situation; it’s all about this quarter’s sales and what happened this week,” he says. “Don’t get me wrong. We watch our business daily and respond immediately when something goes off plan.
“But any good organization has to look at the long term and think strategically. That’s absolutely essential. I believe any business, even a small one, has to have a 10-year vision on where they want to go.”
So let’s work this one out.
Just about every cycling, paddling, hiking, cross-country skiing, diving, rock climbing, snowshoeing and bird watching club has outings or competitions of some sort. There’s generally an end-of-event celebration at the finishing area. Any farmer willing to supply free or discounted food or beverages is likely to get a warm reception.
But would it be worthwhile?
Cynthia and Mike Beretta supplied beef for the Tour de Greenbelt’s end-of-day barbecues and also offered their farm as a pit stop for cyclists. Like MEC, Beretta Organic Farms of King City, Ont., has always had a long-term game plan.
“Our business is based on word of mouth,” says Cynthia Beretta.
“So we’re really big on events. We have a big barn dance and family fun days, anything that gets people out to see what we do and why we do it.”
The Berettas started raising organic beef 17 years ago, but it took a decade before things took off. Today, despite contracting additional supply from several other farms, they can’t keep up with demand.
Beretta says the foundation of their business was created by “educating our clients” at on-farm events and farmers’ markets. That’s why she hooked up with the Tour de Greenbelt, even though there was no guarantee it might create new business.
In fact, she figured the participants were likely healthy food devotees whose food-buying habits and shopping preferences were already set. However, Beretta says she’ll never pass up a chance to reach out to potential new customers.
“Anything that helps you promote what you’re doing is great,” she says. “That’s what we’re all about.”
It’s an approach worth considering. Targeting outdoor enthusiasts and their healthy appetites might just be a way to expand your customer base.
Glenn Cheater is editor of the Canadian Farm Manager, the newsletter of the Canadian Farm Business Management Council. The newsletter as well as archived columns from this series can be found at www.farmcentre.com.
