1. Cima Mountaineering Anna Lucas Caitrin Dolan Ashley Taylor
Korey Benton
Liz Williams
Krista McMahon
Ashley

2. Outline Background SWOT analysis Current situation Key issues
Recommendations
Alternatives
ashley

3. Background 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
Ashley-talk about why the company was refocused and how it was refocused

4. SWOT 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
krista

5. SWOT
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
krista

6. SWOT
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
Krista

7. SWOT 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?!)
Krista

8. 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
Korey

9. Problems Distribution Price Competitors Promotion
Foreign
Domestic
Promotion
Slow to moderate market growth
Korey

10. Problems 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
Korey

11. Problems Competitors Foreign Domestic
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
Anna

12. Problems 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

13. Problems 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
Anna

14. Problems 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
Anna

15. 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
Liz

16. Recommendations
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
Liz

17. Recommendations 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
Caitrin
Get rid of direct selling

18. Recommendations 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
Caitrin

19. Alternatives 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
If there are already low sales in existing boots why would they expand them

20. Questions?
Caitrin