CIMA Mountaineering, Inc Case Study

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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

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