Managerial Marketing – Cima Mountaineering Essay Example

Introducing such a product line could help tap into a new and unknown market segment, while also building brand loyalty for the Cima name. In the event that the new line does not perform well, Cima Mountaineering appears to be financially stable enough to absorb any losses and move forward. Moreover, incorporating this new line into their existing range of hiking boots may help regain retail outlets that have stopped selling their higher-priced, hardcore hiker boots.

According to Margaret's projections, if Cima were to introduce the Weekend hiker line, they would expect sales of 41,010 boots in 2001-2002. On the other hand, Anthony's plan would result in projected sales of 30,566 boots for the same period. Despite Margaret's plan requiring additional startup capital, it is a more viable option for the company in the long term.

In terms of placement (distribution), Cima Mountaineering should retain its current distribution model. This involves distributing the hiking boots to various states such as Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Washington, Wyoming, and also to retailers in western Canada. However, instead of only limiting the new brand to specialized retailers who sell mountaineering, backpacking, and hiking equipment, Cima Mountaineering should explore the possibility of distributing the new Weekend Hiker boots to retailers that already carry these types of boots.

Fallback Plan

In the event that the current course of action is unsuccessful for Cima Mountaineering, Inc., it is recommended to follow Option 2: Implement the strategic plan of company executive vice president Anthony Simon and expand the existing Glacier and Summit lines of hiking boots produced by Cima Mountaineering. By focusing on expanding the current product lines instead of creating

new ones, Cima Mountaineering can stay within its core competencies. Additionally, there are minimal development or capital costs associated with expanding these two product lines. This expansion will provide more variety for the company's current customers. Lastly, since the hiking boots for Mountaineers and Serious Hikers are priced higher, this expansion will generate more revenue compared to lower-cost boots.