Cima Mountaineering - Radford University

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Transcript Cima Mountaineering - Radford University

Cima Mountaineering

Anna Lucas Caitrin Dolan Ashley Taylor Korey Benton Liz Williams Krista McMahon


• • • • • • Background SWOT analysis Current situation Key issues Recommendations Alternatives


• • • • • Hoback Boot Company, founded in Jackson, Wyoming Began as a Western-style boot company Inherited from parents (president- Margret & VP- Anthony) Company was refocused to increase revenues 1981 Hoback was renamed to Cima Mountaineering


• • • • • • STRENGTHS Test hiking boots on trails Discuss marketing strategies to increase profits and increase sales Sales & Profits have grown steadily Anthony & Margaret (owners) grew up learning the boot business Quality emphasized throughout product line Each line has different styles & features to cover many of the important uses in the market


• • • WEAKNESSES • Growth has slowed down as a result from foreign competition & a changing market Market wants more casual, stylish boot for weekend hikers Not much modification to the current boots Decided not to use mail order catalog companies


• • • OPPORTUNITIES • Market wants more casual, stylish hiking boot for a variety of uses Ideas to extend the line & expand distribution Make boots at lower prices Light weight hiking boot for less experienced hikers

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THREATS Risk in new line of boots New boots = new set of marketing, competitive issues, and financing a new line Asolo, Hi-Tec, Salomon, Raichle, Reebok, Nike, Vasque, and Merrell Rocky Mountain Sports & Great Western Outfitters dropped Cima and picked up their competitors (more to come?!)

Current Situation

• • • • • • Revenues are increasing but at a slowing rate Cima is looking to expand but they can’t decide which alternative to choose Losing business due to high prices Competitors are becoming increasingly popular with a less expensive weekender style of boot Cima currently only focuses on more expensive boots for a medium to advanced level of hiker and climber Cima only sells using personal selling to specialty retailers while their competitors sell through mail order companies and chain sporting goods stores


• • • Distribution Price Competitors – Foreign – Domestic • • Promotion Slow to moderate market growth


• Distribution – Currently, Cima boots are only distributed in Western Canada and the Western United States • Only sell in 10 states in the US – Cima Mountaineering only sells their boots to retailers that specialize in mountaineering, backpacking, and hiking equipment • • • Do not use catalogs Do not use sporting goods chains Do not use internet


• Competitors – Foreign • Foreign companies exporting their boots aggressively into the United States • Asolo, Hi-Tec, Salomon, Raichle marketed on performance and reputation, usually to the mountaineering serious hiker and weekender segments of the market – Domestic • Vasque and Merrell market boots that compete with Cima, but are offering products for segments of the market where prospects for growth are better • Reebok and Nike new entry to boot market-- appearance and durability of hiking boot with the lightness and fit of athletic shoes-- expanding into markets that demand lower levels of performance


• Price – Current prices are too high to reach some of the market – Losing retailers due to high prices • Great Western Outfitters replaced Cima with Merrell due to customers asking for lower-priced boots


• Promotion – Cima needs to expand their promotion techniques • • • • Personal selling Print advertising Trade shows Point of sale displays – Only have 10 sales reps • All independent and sell complementary equipment – Print advertising is only placed in backpacking magazines • Summit, Outside, Backpacker


• Slow to moderate market growth – Mountaineers only make up 5% of the market share and are seen as having slow growth – Serious hikers make up 17% of the market share and are seen as having moderate growth – They are in no high growth markets and only reach 22% of the boot market

Key Issue

• How to expand the company in order to increase growth and keep up with competitors – Management is torn on which expansion approach to take • Expand existing Line • Develop new line


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Introduce a less expensive, more versatile “Cima Weekender” boot

• • • Lightweight, comfortable, durable, versatile Young to middle aged men and women Recreational hikers, enjoy outdoors and spending time with friends and family • Price range ($80-$100)


• • Appeal to a new target market High potential for growth • • Low prices while maintaining quality Expand distribution


• Increase product distribution of all lines – Expand throughout the U.S.

– Expand to chain sporting goods stores • • Dicks Sporting Goods REI • Gander Mountain – Distribute through mail order catalogs – Distribute through internet • • Allows customers to order on company website Allow customers to order through retailer websites


• Increase Promotion – Advertise on internet • Create website – Have list of retailers that sell Cima products • • • Hiking Websites Trail Websites Retailer Websites – Expand to family-oriented & health magazines


• We Chose not to expand existing boot lines • Smaller target market – Mountaineering and serious hikers only make up 22% of the boot market – Weekender boot market makes up 25% of the boot market • Less growth potential – Mountaineering is a low growth market – Serious hiker is a moderate growth market – Weekender is a high growth market • Already have multiples styles in those brands – Have three mountaineering styles – Have 5 serious hiker styles • If weekender brand proves successful, they can always expand their existing boot lines in the future