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...
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...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
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”.
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
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.
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
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.”
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...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.
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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...
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