Cima MountaineeringCima Mountaineering

Anna LucasAnna LucasCaitrin DolanCaitrin DolanAshley TaylorAshley TaylorKorey BentonKorey BentonLiz WilliamsLiz Williams

Krista McMahonKrista McMahon

OutlineOutline

• Background

• SWOT analysis

• Current situation

• Key issues

• Recommendations

• Alternatives

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

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

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

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

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?!)

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

ProblemsProblems

• Distribution

• Price

• Competitors– Foreign– Domestic

• Promotion

• Slow to moderate market growth

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

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

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

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

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

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

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

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

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

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

Questions?Questions?