Recommendations: After closely examining this case, I have decided that it would be in the company's best interest to go forward with the lines extension of the existing boots for mountaineers and hikers. This option seems to yield a higher return in profits than the other alternative. Problem Statement CIMA Mountaineering, Inc. is a company manufacturing in hiking and mountaineering boots for beginner to experience hikers. CIMA sales and profit had grown steadily within the last several years. However, CIMA growth is beginning to slow down as a result of foreign market and changing market. The company is under consideration of two marketing proposals, these two marketing proposals will discuss about marketing strategies for increasing sales and profits of the company. CIMA Mountaineering, Inc. has to decide whether they should enter the "weekend" segment of the hiking boot market or extend the existing lines of boots for mountaineers and hikers to achieve their objective. Facts: Underlying Issues: 1. The market for boots had shifted to a more casual, stylish hiking boot that appealed to hikers interested in a boot for a variety of uses. 2. CIMA is facing stiff competition from foreign competitors. Foreign bootmakers are providing outstanding performance and attractive priced boots to customers. 3. A line of inexpensive, casual boots doesn't seem to fit with the perception consumers have with CIMA products. This will affect the brand image that CIMA has worked hard to establish for the past 20 years. 4. A line extension or a new product line will require additional investment for product development and marketing activities. 5. CIMA is not sure what percentage of sales the typical footwear company makes through t... ... middle of paper ... ...artment stores, specialty shops, and retailers. Why and how do CIMA Mountaineering customers select their product? - CIMA Mountaineering customers select their products perhaps based on their design, the quality of workmanship, and the safety features. I feel that price should not have an influence in the decision-making process because dealing with this case the purchasing process should be based on the safety feature, which is more important than the price tag. Why do potential customers not purchase CIMA Mountaineering products? - Some reasons why potential customers might not but CIMA Mountaineering boots are: · The price is too high when compare to some competitors. · CIMA Mountaineering boots don't offer a wide range of style. · Location is not located near a potential customer. · Brand and customer loyalty. Competitive Analysis: Market Structure
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
Pg. 17 “Nevertheless all is not lost; much remains, and I welcome the prospect of an army of lug-soled hiker’s boots on the desert trails.”
A pair of boots represents one of the most profound symbols found in Remarque’s novel. The soldiers each pass the boots, owned by Kemmerich, to a new owner after the previous owner dies in combat. Even Kemmerich himself took the boots from the dead corpse of an airman. As Kemmerich’s own death bed approaches, Müller tries to possess boots:
According to Leon Leonwood Bean, the late founder of L.L. Bean, the reasons for L.L. Bean’s success is that it “provides quality apparel, footwear, and equipment to outdoorspeople at the fairest possible prices and with the most efficient and accommodating service”.
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
...t could perform hard work. This gave them the financial security to always be able to supply for his family. They also have the safety of the man of the household and they have the safety of having a place to live. The boots show that there is someone working in the household. They are proof that someone is making money to support them. They also portray safety, if they have another job; they have another option to fall back on.
Offering special products is marked under strengths and opportunity; however, long term sustainability must ease the weaknesses and threats posed by competitors and external markets forces. However, they are several other strengths of this company that outweigh the weaknesses but can easily be threatened. Lululemon has a great brand equity and knowledge in the market which has helped them development a customer loyalty. While Lululemon’s strengths is challenging, limiting their products to a special market, with higher than normal prices opens the markets for competitors. Lululemon has several weaknesses, they only offer a specialty product and it mostly aimed to attract woman. The company’s profitability has decreased over the recent years, showing the necessity for Lululemon to sustain its economic growth through product diversification and geographical expansion. Many of their competitors have grown, mostly likely due to their global growth and divarication. If Lululemon would expand their market growth this would open up so much more opportunity for this company to grow. One of their weaknesses is there is the dependence on suppliers. This opens a great opportunity for Lululemon, right now they are heavily relying on suppliers around the world and they do not have their own manufacturing facilities. This is causing the company to spend more money of vendors to
There are numerous costs of production for Nike Company which can be placed into two categories: fixed costs and variable. Fixed costs are those that remain the same for all production and variable costs change with each project. The organization’s manufacturing process, machinery, research and development costs make up the fixed costs. On the other hand, administration, distribution, labor and raw material are the variable costs. All of these are required in the organizations operation to ensure that it remains profitable. Production cost for each shoe is between $30 and $100 and they are sold at $100 to $300. Therefore, the organization stands a good chance of making a profit (Nike, Inc., 2012).
The Company Kinky boots paid its responsiveness towards the promotion events by significantly understanding the customer’s wants and based on the findings they preferred their manufacturing plan and comparatively it also engrossed on the improvement activities via innovation (Mindtools.com 2014).
According to consumer research conducted by GFM, both consumers and retailers regarded socks as a product category, which was hard for companies to achieve product differentiation. In fact, most companies in this market like Chipman-Union manufactured unbranded socks for private label merchandise, because it was extremely hard to get consumers' brand awareness, and to make them recognize the product features. As a result, there were only two companies which manufactured branded socks : Burlington and Interwoven.
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.
...enture into overseas market comes with expectations as well as uncertainties due to unfamiliarity. Charles and Keith, the fashion retailer, has to understand clearly that what appeals in one market might not be accepted in the others and this is almost the same for all industries. Thus, a thorough research on cultural background has to be done before entering an unfamiliar ground.
The very first pair of shoes was created many years ago. Its purpose was to protect the feet from rocks and debris and also to provide warmth. It was created in a very simple form. People used to make shoes by wrapping their feet in dried grasses, straws, cowhide and leathers. Later on, pieces were developed from an oval piece of leather which was bound by a piece of strong leather strings. This may have looked like one of today’s sandal...
The first type of shoe that many people wear are sandals; sandals are popular for many reasons. One, during the hot summer months’ sandals provide the maximum source