Converse Case

Converse Case

Introduction

Converse was founded in 1908 and by 1917 the All Star shoes were introduced on the market as an American made product. In 1923 the shoes were renamed the Chuck Taylor, after the semiprofessional basketball player. By 1970, eighty percent of basketball players wore Converse shoes out on the court. In 1983 their revenue was $209 million. Converse faced a lot of competition, and in 1989 they only held five percent of the market share. In 2001 their revenue had dropped to $185 million. Nike bought Converse out in 2003 for $305 million and put more than four million dollars into advertising. Today, Converse has over 1,000 different types of Chucks, a men's clothing line and a women's clothing line.

Discussion

Converse is an american sport company which was created by Mills Converse in 1908. This firm began by selling sportwear for men, women and children. However, nowadays, Converse is also famous for its “ Chuck Taylor All Star ” and those represents the main part of sales.

QUESTION 1: What are the core, actual, and augmented product benefits of the Converse Chuck?

Solution:

Classic kicks that fit any look..

Perceived look of self-expression, free-spirit and creativity.

Easy to care for.

Quality.

Comfort.

Brand name recognition.

Packaged in color-themed shoe box.

Thousand of choices; create your own.

Create your own option.

Limited edition and web exclusive offers.

Easy returns within 30 days.

If purchased at high-end retailer, satisfaction guarantee

QUESTION 2: When Converse outsourced production of its shoes to India, it entered into a licensing arrangement. What are the benefits and risks of that action? Do you think it has helped or hurt the company? The brand?

Solution:

Minimize production costs.

Global brand recognition.

Increase of international sales. Removal of “Made in The U.S.A” label.

Perception of poor product quality

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