A 10 page paper discussing the
marketing decisions facing a small manufacturer of high-quality hiking boots. Cima Mountaineering specializes in the manufacture and sale of high-quality hiking boots firmly established in the hiking boot market. The company faces a decision involving the addition of a new line of boots and choosing which path to follow. The company currently targets mountaineers and serious hikers, but the fastest growth is among weekend hikers who limit themselves to short trips. They neither need nor want such high-end boots, though they will choose higher-end boots as their skills increase. The paper includes a SWOT analysis and recommends that Cima add a line targeting these more casual hikers. Bibliography lists 6 sources.
Name of Research Paper File: CC6_KShiking.doc
Unformatted Sample Text from the Research Paper:
the manufacture and sale of high-quality hiking boots. The company is a family-owned business founded by the current management teams parents and originally made Western boots for sale in
the local area and then in other regions of the country. Focus shifted to hiking boots when the national infatuation with things Western faded and sales appeared to have
permanently declined. Now firmly established in the hiking boot market, the company faces a decision involving the addition of a new line of boots and choosing which path to
follow. Background and Current Situation In 1995, Cima Mountaineerings revenues were just over $20 million,
an increase of 65 percent over the $13 million in revenues in 1990. Income had nearly kept pace with revenues, increasing 60 percent over the same period from $522,606
to $857,134. Profits during the period had approached but not exceeded five percent in 1992 and 1993, but since then had steadily declined to 4.27 percent (L___, Cid and
Hammond, 1995; p. 527). The total value of the hiking boot market in 1994 was $600 million, 22 percent of which is attributable
to mountaineers (five percent) and serious hikers (17 percent). Based on Cimas portion of $18.7 million, Cimas share of the overall market was only three percent. However, Cima
has not been attempting to take on the entire market for hiking boots. The company has focused on providing high-end products for serious hikers and mountaineers. The companys
share of those market segments is much greater, but it still is only 14 percent [Cimas $18.7 million ? ($600 total value x 22 percent)]. In addition, giants in