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    Esha Chhabra
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    CIMA Mountaineering was a company founded in the late 1960s that produced mountaineering and hiking boots. Through the 1990s, the company experienced rising revenues and income but falling growth. In the early years, CIMA focused on western boots but shifted in the late 1970s to produce boots for mountaineering and hiking in response to changing market demands. By the 1980s and 1990s, CIMA was successful with its line of technical boots but faced increasing competition from large brands producing cheaper, lighter boots. CIMA aimed to maintain its position as a producer of high-quality, durable boots through innovation and cost-efficiency.

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    CIMA Mountaineering was a company founded in the late 1960s that produced mountaineering and hiking boots. Through the 1990s, the company experienced rising revenues and income but falling growth. In the early years, CIMA focused on western boots but shifted in the late 1970s to produce boots for mountaineering and hiking in response to changing market demands. By the 1980s and 1990s, CIMA was successful with its line of technical boots but faced increasing competition from large brands producing cheaper, lighter boots. CIMA aimed to maintain its position as a producer of high-quality, durable boots through innovation and cost-efficiency.

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    194 views14 pages

    CIMA

    Uploaded by

    Esha Chhabra
    CIMA Mountaineering was a company founded in the late 1960s that produced mountaineering and hiking boots. Through the 1990s, the company experienced rising revenues and income but falling growth. In the early years, CIMA focused on western boots but shifted in the late 1970s to produce boots for mountaineering and hiking in response to changing market demands. By the 1980s and 1990s, CIMA was successful with its line of technical boots but faced increasing competition from large brands producing cheaper, lighter boots. CIMA aimed to maintain its position as a producer of high-quality, durable boots through innovation and cost-efficiency.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 14

    CIMA Mountaineering

    GROUP 6

    CIMA Mountaineering
    Anthony and Margaret co owned the company that was passed on the company from

    their parents. Year 1990-95


    Revenues RISING Income RISING Growth FALLING

    Margarets Opinion Observed a market shift to casual wear Suggested introducing new lines of boots for the weekend hiker RISK : New set of marketing and competitive issues and finance a new line

    History of CIMA Manufacturing

    Late 1960s By 1975


    End of 1976

    Demand for western boots decline Parents wish to salvage business, kids take over

    Sales declined to $1.5mn Profits $45000

    Refocusing the business


    Limitations of Western Boots: Heavy and uncomfortable Little resistance to snow and water Anthonys Opinion : Develop boots for mountaineering and hiking

    1977
    Summer of 1978 1978

    12 months of marketing research Explored companys potential to produce new boots

    Mountaineering and hiking boot ready for testing

    The transition and beyond


    1981: Hoback ready to enter market with Boot for all weather climbing Advanced hikers 1986: Outdoor recreation and Hoback performance rise: Sales: $3.5 Mn 1987: Independent sales representatives handle sales and service || Exceptoinal

    growth

    Decide to discontinue western boots Rename company to Cima Mountaineering Inc.

    1990: Sales reached $ 13 million, Profits= $ 522606 Competition by foreign players Find new ways to manufacture at low cost

    The Years After


    5 years of growth, innovation, more competition

    Nike and Reebok come up with lightweight boots


    1993- CIMA shifts to CAD 1994- CIMA shifts to modular approach || Significant cost achievements 1995 Sales @ 20 Mn Growth 7.2% Employment: 425 Operational Capacity: 85%

    CIMA Marketing Strategy


    In 1994, retail sales for mountaineering boots exceeded $600 million, and about 15

    million pairs of boots were sold. Boots used for mountaineering to casual social events

    Yet, changes were beginning to occur in the market. Inexpensive, lightweight hiking boots were becoming increasingly popular for day hikes and trail walking New category of comfortable, light trekking shoes were being marketed CIMA however, marketed part of the market of serious outdoor enthusiasts. Resulting in seasonal demands for the products

    CIMA Positioning
    Positioned as best available for their intended purpose

    Durable Comfortable Exceptional Performance

    Company

    Quick to adopt innovative construction Used traditional styling

    Products

    Glaciar MX 350 cost $219.00 positioned as classic boot for men for beginning mountaineers Summit HX 350 priced $159.00 positioned as boot for men & women hiking on rough trails

    CIMA Product Lines


    Different lines with alphabetical letters and numbers to differentiate items

    Lines had different features, but standard features were Water repellant leather uppers High traction soles and heels
    Different Lines Glacier Boots for Mountaineering (MX 550, MX 450, MX 350) Summit Boots for Hiking ((HX 150 HX 550)

    CIMA Distribution
    Sold in 11 States Arizona California Colorado

    Nevada New Mexico Idaho

    Montana Oregon Washington

    Wyoming Western Canada

    Sold through specialty retailing selling Mountaineering Backpacking Hiking equipment

    CIMA Promotion
    Sales & Marketing office was located in Jackson Managed by Mr. Harris Fleming Important aspects of strategy: Advertising Personal Selling Sales Promotion Used to gain exposure for CIMA branded boots

    CIMA Personal Selling


    10 independent sales representatives in western Canada Representatives did not sell competing boots, but they sold complementary

    products They were paid a commission and handled customer service in addition to sales Harris Flaming trained them

    CIMA Advertising and Selling


    Advertising and sales promotion also important methods Print advertising used for brand awareness Advertising in leading magazines Also offered cooperative advertising Provided product literature & Point of Sale displays to retailers Participated in trade shows

    CIMA Pricing
    Range $64.50 - $149.50 Mountaineering boots were expensive Retailers had about 50% margins CIMA priced boots higher than the competition at all points implying higher quality

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