Topic > CIMA Mountaineering, Inc Case Study - 1013

Recommendations: After carefully reviewing this case, I have decided that it would be in the company's best interest to proceed with extending its existing boot lines for mountaineers and hikers. This option appears to produce a higher profit return than the other alternative. Problem Statement CIMA Mountaineering, Inc. is a company that manufactures hiking and mountaineering boots for beginner and experienced hikers. CIMA's sales and profits have grown steadily in recent years. However, CIMA's growth is starting to slow due to overseas market and market changes. The company is looking at two marketing proposals, these two marketing proposals will discuss about the marketing strategies to increase the sales and profits of the company. CIMA Mountaineering, Inc. must decide whether to enter the "weekend" segment of the hiking boot market or extend its existing lines of boots for mountaineers and hikers to achieve its goal. Facts:Underlying issues:1. The boot market had shifted toward a more casual, stylish hiking boot that appealed to hikers interested in one boot for a variety of uses.2. CIMA is facing strong competition from foreign competitors. Foreign boot manufacturers offer customers exceptional performance and boots at attractive prices.3. A line of casual, affordable boots doesn't seem to fit consumers' perception of CIMA products. This will affect the brand image that CIMA has worked hard to establish over the last 20 years.4. A line extension or new product line will require additional investment in product development and marketing activities.5. CIMA is unsure of the percentage of sales a typical shoe company makes through… the medium of paper… art stores, specialty stores and retailers. Why and how do CIMA Mountaineering customers select their product? - CIMA Mountaineering customers select their products perhaps based on design, quality of workmanship and safety features. I believe that price should have no influence in the decision making process because when dealing with this case the purchasing process should be based on the safety feature, which is more important than the price tag. Why don't potential customers buy CIMA Mountaineering products? - Some reasons why potential customers may not choose CIMA mountaineering boots are: · The price is too high compared to some competitors. · CIMA mountaineering boots do not offer a wide range of styles. · The location is not close to a potential customer. · Brand and customer loyalty. Competitive analysis: market structure