cima mountaineering anna lucas caitrin dolan ashley taylor korey benton liz williams krista mcmahon
TRANSCRIPT
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Cima MountaineeringCima Mountaineering
Anna LucasAnna LucasCaitrin DolanCaitrin DolanAshley TaylorAshley TaylorKorey BentonKorey BentonLiz WilliamsLiz Williams
Krista McMahonKrista McMahon
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OutlineOutline
• Background
• SWOT analysis
• Current situation
• Key issues
• Recommendations
• Alternatives
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BackgroundBackground
• 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
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SWOTSWOT
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
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SWOTSWOT
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
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SWOTSWOT
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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SWOTSWOTTHREATS
• 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?!)
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Current SituationCurrent 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
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ProblemsProblems
• Distribution
• Price
• Competitors– Foreign– Domestic
• Promotion
• Slow to moderate market growth
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ProblemsProblems
• 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
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ProblemsProblems
• 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
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ProblemsProblems
• 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
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ProblemsProblems
• 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
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ProblemsProblems
• 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
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Key IssueKey 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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RecommendationsRecommendations
• 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)
• Benefits• Appeal to a new target market• High potential for growth• Low prices while maintaining quality • Expand distribution
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RecommendationsRecommendations
• 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
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RecommendationsRecommendations
• 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
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AlternativesAlternatives
• 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
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Questions?Questions?