Cima Mountaineering Case

Cima Mountaineering, Inc. Case

Problem:
Cima Mountaineering Inc. is facing the task of deciding mingled with two marketing plans, proposal 1 by its President, Margaret Simon and intent 2 by its Vice President, Anthony Simon. Each proposal has been fit(p) out in a memorandum and considered from a product, promotional, distri just nowional, and positional point of view. The views expressed in the memorandums give a extensive perspective from a qualitative stand point but in order to properly resolve the problem a quantitative analysis is necessary. Sales for 5 grades moderate been forecasted relating to each plan by two project teams depute by Harris Fleming, Vice President of Marketing. The possibility of entering into dismount order catalogues is also an option to be considered. The catalogue could serve reach the eastern half of the country and expand the geographic sales possibilities but might also cause cannibalization on the western half.
Analysis:
Proposal 1 consists of introducing 2 refreshful boots aimed at the “weekender” market, a high growth segment at heart the market for Cima products. The 2 new boots would be called the WX 450 and the WX 550. The WX 450 would profit $5.18 per span in its scratch line course (97-98) and rise each year after that until its 5th year (01-02) when it would profit $7.



13 per pair because of a 4% annual improver to Cima selling prices and a 3% annual increase in marketing and manufacturing costs.. The estimated sum of money sales over that 5 year power point would be 72,900 pairs of WX 450. The total profit WX 450 would make over that 5 year period is $472,929. The profit per pair and total profit for each year (97-02) is displayed in Exhibit 5.
The WX 550 would profit $6.67 per pair in its first year (97-98) and rise each year after that until its fifth year (01-02) when it would profit $9.21 per pair because of a 4% annual increase to Cima selling prices and a 3% annual increase in marketing and manufacturing costs. The estimated total sales over that...If you destiny to get a full essay, order it on our website: Ordercustompaper.com



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