Cima Mountaineering - Radford University

Cima Mountaineering
Anna Lucas
Caitrin Dolan
Ashley Taylor
Korey Benton
Liz Williams
Krista McMahon
SWOT analysis
Current situation
Key issues
• 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
• 1981 Hoback was renamed to Cima
• 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
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
Market wants more casual, stylish hiking
boot for a variety of uses
Ideas to extend the line & expand
Make boots at lower prices
Light weight hiking boot for less
experienced hikers
Risk in new line of boots
New boots = new set of marketing,
competitive issues, and financing a new
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 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
• Distribution
• Price
• Competitors
– Foreign
– Domestic
• Promotion
• Slow to moderate market growth
• 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
• 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
• 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
• 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
• Summit, Outside, Backpacker
• 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
– They are in no high growth markets and only
reach 22% of the boot market
Key Issue
• How to expand the company in order to
increase growth and keep up with
– Management is torn on which expansion
approach to take
• Expand existing Line
• Develop new line
• 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
• Increase product distribution of all lines
– Expand throughout the U.S.
– Expand to chain sporting goods stores
• Dicks Sporting Goods
• Gander Mountain
– Distribute through mail order catalogs
– Distribute through internet
• Allows customers to order on company website
• Allow customers to order through retailer websites
• 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
• We Chose not to expand existing boot
• Smaller target market
– Mountaineering and serious hikers only make up 22% of the boot
– 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

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