Case: CIMA Mountaineering
In the mid-90s there was $600 million in sales for hiking and mountaineering boots. That same year CIMA had $13 million in sales. This equated to only 2% of the market where CIMA boots are considered as the best available product in the market. With the growth of the company being a priority, we believe that developing a third strategy using points mentioned by Anthony to extend the existing lines of boots for mountaineers and hikers, along with a new women’s line, to include implementing substantial changes to product innovation and distribution. It is important to develop an innovative new line which is a more economical model in the hiker category for the weekender, designed for the consumers looking for a “casual-stylish” boot.
CIMA has built its brand reputation as a valuable and high quality boot, therefore building differentiation by creating loyalty with their customer base. They have develop a winning product in its category with a good reputation, therefore they should avoid over-reaching. By developing these two models in our existing profitable segment, CIMA’s reputation would grow stronger and be perceived as if we are moving into a “good-to-great” product design. The idea of introducing the inexpensive boots within the hiker category will help consumers move from the “beginner to the experienced” level with the same brand that provides quality, comfort and performance throughout the way. CIMA will hire a designer that understand the need of the market, and that would go to distributors and hiker’s social gatherings to interact directly with the customer and obtain first-hand information on styles, colors and performance the weekend hiker is looking for. Another innovation will be in the package design to improve the company’s image.
CIMA needs to develop their current distribution to increase penetration. Currently they