cima presentation section d team 11
DESCRIPTION
Team vs. Team presentation for COMM 132: Marketing II at Queen\'s School of BusinessTRANSCRIPT
Key Issues
•Changing Consumer Preferences
•Limited Distribution Network
•Competitors
Key Issues DistributionTimeline
Product line
Implementation
Financials
Proposal Analysis
Promotion
Proposal AnalysisProposal Strengths Weaknesses
MARGARET’S PROPOSAL “Weekenders” segment WX550 ($89.00) and the
WX450 ($69.00)
25 percent market share in segment; growing rapidly
Targets a new segment that Cima has not yet penetrated
NPV = $1,453,630.12
Dilutes brand image Company no longer has a
clear focus Incur additional costs of
$500,000 No prior experience with
materials used in boots
ANTHONY’S PROPOSAL Stay in current segments Extend Summit line: the
HX100 ($119.00) and HX50 ($89.00)
Extend Glacier line: introduce a women’s MX350 ($219.00)
Remain in segments that Cima has found success
Follows customer’s price sensitivity
Diverse product line which allowing Cima to remain competitive
NPV = $1,733,487.29
Does not target a large demographic
Growth in both segments may not sustain sales
Incur additional costs of $550,000
No prior experience with materials used in boots
Both projects should be accepted; however, Anthony’s
proposal is the better suited
short term goal for Cima.
DistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
APR 1996-“Hiking to New Horizons” event-Expand to East Coast-Work with REI and MEC
MAY 1996- Release value-added packages
JUNE 1996- Beta test products
SEPT 1996- Begin production of products
JAN 1997-Ship new products- monitor performance
June 1997- Begin Evaluating Margaret’s proposal
Timeline
Key Issues Timeline
Product line
Proposal Analysis
NOW-Anthony’s proposal - Outsource - Begin design- Prep for “Hiking to New Horizons”
Cima’s Improved Product Line
•Summit Traverse X•$119.00
•Summit Traverse•$89.00
•Glacier Accent V•$229.00
DistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
Distribution
•Expand to Eastern USA: continue selling through speciality retailers
• REI and MEC
•Hire additional sales representatives
•Conduct job analysis of current sales representatives
DistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
Promotion
1) Hike On! Magazine and POS
2) “Hike to New Horizons” Event
3) Adopt a trailDistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
Financials
•Growth
•Additional Costs
•Capacity
DistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
1997-98 1998-99 1999-2000 2000-01 2001-02Sales
Glacier Ascent V $ 37,922.40 $ 51,252.03 $ 88,869.88 $ 183,200.75 $ 241,000.69
Summit Traverse X $ 192,732.40 $ 270,786.88 $ 518,857.36 $ 711,325.75 $ 858,666.82
Summit Traverse $ 135,742.80 $ 186,934.18 $ 353,051.98 $ 469,849.84 $ 537,120.90
Total Sales 366,397.60 508,973.09 960,779.22 1,364,376.34 1,636,788.42
Marketing and Manufacturing Costs Sales commissions 36,639.76 37,738.95 38,871.12 40,037.26 41,238.37 Advertising and sales promotion 33,319.88 51,569.48 72,954.06 97,955.81 127,129.58 Materials 141,730.43 145,982.34 150,361.81 154,872.67 159,518.85 Labour, overhead, and transporation 114,747.89 118,190.33 121,736.04 125,388.12 129,149.76Total Costs 326,437.96 353,481.10 383,923.03 418,253.85 457,036.56
Contribution Margin 39,959.64 155,491.99 576,856.19 946,122.49 1,179,751.86
DistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
Financials
Implementation
•Mutual support
•Strong Financials
•Great Opportunities
DistributionTimeline
Product line
Implementation
Financials
Promotion
Key Issues
Proposal Analysis
Thank-you for your time!
Supplementary Q&A Slides
COMM 132 Sec D Team 11
David Cochrane 5806261Matthew Johnson 5857476Cindy Luong 5807910Paula Plagianakos 5808874Rameez Sewani 5939698Katherine Woo Too Yen 5810504