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Advertising efforts of CONVERSE

Client name: Converse

Name: Le Mao

Course info: ADV342 793

Date: July 10,2019

Client information

Converse Inc (Converse), a subsidiary of NIKE Inc, is a retailer of apparels and accessories. The company is headquartered in Boston, Massachusetts, the US. Converse offers products such as sneakers and clothes. It also provides bags, sunglasses, and other fashion goods. The company offers various way to sell its products. The company operates through its stores not only in the US, but also in the other countries. People are able to go to the retail store or its website to get the products. Further, the company offers the shipping and delivery for every customer who shops online. What’s more, Converse accepts returns and exchange, and online ordering services. ("Converse Inc," 2018) With its roots as a popular basketball shoe worn by professionals, Converse has morphed under NIKE into a fashionable footwear maker for those off the court too. It has sold some 750 million pairs of its classic Chuck Taylor All Star canvas basketball shoes, which appeal to consumers ranging from kids to clothing designers. It also licenses its name to sports apparel makers. Converse produces products under the One Star, Chuck Taylor All Star, and Jack Purcell names. It sells them through its own stores and through retailers the likes of Target and even DSW. Converse operates as a separate unit from NIKE's competing sports brands, reining in the kitsch value of Converse's vintage Chuck Taylor brand. (2019). With a capital investment of $250,000, Marquis Converse founded Converse Rubber Co. in Marden, mass., in 1908 with 15 employees. Not long after Converse, “Converse All Star shoes” were introduced in 1917, the company achieved a major breakthrough. The shoes were chosen by young basketball star, Chuck Taylor, as his favorite basketball sneaker. Taylor joined converse's sales team in 1921 and in one of the earliest sports endorsement cases peddled shoes at basketball clinics he held at schools and colleges. Taylor's signature was added to the label in 1923.

The 4 P’s of Converse would be the product, place, price and the place. First of all, the product of Converse will be shoes, “CONVERSE NEW STAR” shoes will be extended and will be added even more designs in different styles. Secondly, Converse sells its footwear and other items globally through retailers in more than 160 countries and through about 85 company-owned retail stores nationwide and half a dozen international retail stores. The company maintains a facility in Ontario, California, from which it ships products for two of NIKE's affiliate brands -- Converse and Hurley. Its largest direct distribution markets are the US, the UK, and China. Footlocker-the company's largest customer, accounts for about a fifth of sales. Converse sells products to retailers through local and regional distributors. (About Converse, n.d.). With the development of the internet, online shopping has become more and more convenient. Third of all, the price of Converse’ shoes is acceptable for college students, the lowest price of “ALL STAR LOW TOP” is $50, other styles are among $55 to $90, except limited production. Different from the high prices of Air Jordan, the price of Converse’s cheapest shoes is around only 55 dollars. The lowest price of basketball shoes is around 90 dollars. Last but not least, the promotion of Converse is selling the shoes as a culture - “Whether they’re on the feet of a ‘70’s basketball star in a history book or on the street with you today, Chucks have always signified cool...because you wear them. We don’t know where you’ll go, but we know you’ll take Converse to the future with you.” (01-810-5341. CONVERSE INC. n.d.).

SWOT analysis

Converse shoes are popular among teenagers and adults because they are not only fashionable but also comfortable. Some of these features include vulcanized soles, rounded tips and wraparound strips. The all-star shoes are well known around the world, the strengths of Converse are not only the price of it but also the culture of this brand. Compare to some other brands, Converse give the opportunity to those people who are not as rich as others to wear its comfortable sneakers. There is no boundary to gain joy and love between rich and poor. The quality of Converse products are usually good due to its great history. Converse has been making Chuck Taylor All Star and One Star sneakers since it started over a century ago, and now it works to make new street style classics, even sometimes with more seasonal patterns. Since Converse has such a long history, the fame, the skills and the techniques definitely deserve its strength. What you wear defines sport, street, and creative culture, and it has been redefining it with you all along. When you wear Converse products, you create a culture of authentic street style simply by being yourself. Here is the market share of the Converse’ finance from 2010 to 2017. ("Historical Financial," 2016).

Converse do advertising on Facebook, Instagram, online, such as Facebook and Instagram, and offline. In addition, prices in the economy sector range from $55 to $130 and are affordable for all categories of customers. While the outstanding design of Converse shoes will be one of the most strengths, Converse stands out in color and modeling, and is very fashionable and modern. Furthermore, the Converse Shoe is guaranteed comfort by the customer. If the customer dislike it, he could just contact the customer service and send the shoes back via mail and get the refund.

One of the weakness of Converse shoes is that it is a subsidiary of NIKE Inc, it limits the development and advertising. Talking about NIKE, we might firstly think about Air Jordan or Nike SB. They are more popular among people nowadays than Converse. In this case, people are more likely to know about the latest products from Nike’s other subsidiary. On the other hand, consumers are only familiar with the “Chuck” and “All-star” styles of Converse. The company have to expand more series to attract customers attention.

The Chinese footwear market grew by 10.5% in 2017 to reach a value of $62.2 billion. ("China-footwear," 2006) It is obvious that people will not only be satisfied with one or two pairs of shoes, by the increasing of per capita income, customers would like to spend more on their shoe industry. Especially online shopping is the most convenient way to buy the products. Converse has to pay more efforts on its designs and advertisements. It also needs to create a more enjoyable and easier way for people to shop online.

Competitors such as Vans, Puma, and Adidas give tremendous pressure for Converse as competitors. ("Converse Inc," 2018) In addition, there are so many brands that are counterfeit sold at lower price which has negative impacts on the sale of Converse.

Consumer insights

The new collection features Missoni's iconic patterns printed on the signature Chuck Taylor All Star and Chuck Taylor All Star Fancy sneakers. The Season Fall 2014 Converse Chuck Taylor All Star Missoni collection launches exclusively at Nordstrom (nordstrom.com) on Aug. 4 and includes a style exclusive to Nordstrom. The rest of the collection will be available at Converse retail stores and converse.com on Aug. 28. Available exclusively to Nordstrom, the Converse Chuck Taylor All Star Missoni low-top features the classic zig zag print and is available in both men and women sizes. Available Colors include Lucky Stone/Egret. Also, the prices of its products are always reasonable and cheap. College students’ budget is perfect with the price of the shoes Converse selling. Most college students care about their fashion, they are willing to spend money on shoes, they follow fashion and like fresh design. The Chucks brand is popular among two age groups ranging 13-19 years of age and also the Entry-level professionals between the ages 20-35. (Hitesh, 2019). The age of college students is among 18-21 and above, a large part of the target of Converse. The cost for man’s footwear in China for 2019 are 170,193,5 CNY million, Russia are 195,077,7 RUB million, USA are 28,646 USD million. The costs for woman’s footwear in 2019 are 211,575,0 CNY million, Russia are 520,759,6 RUB million, USA are 39,026,7 USD million. (American Psychological Association [APA], n.d.). From the comparison of men's and women's expenditure on shoes, it can be seen that women's expenditure is higher, which is the main reason why I choose women as the segmentation.

Problem Definition

Although chucks and all-star shoes are classic, these two shoes have always been the world of Converse, which means its monotonous style is hard to compete with other brands in nowadays society. In this case, Chucks and all-star shoe models are very famous, and we can expand the product design to promote the popularity of these two classic shoe models. But in order to attract more consumers, we need to design more appealing styles, rather than focusing on the two classic styles. The most important thing is to create different kind of styles, such as cute styles, rock style and so on. To learn about the costumer’s’ opinions, more research questions are required to take. I would like to start with the qualitative question first. Observation of the female college students’ footwear in campus is one of the ways to learn about the styles they like. Quantitative questions are also important to the decision weather Converse should spend or time on Designing more styles of shoes, do the survey in campus or online to learn about today’s college female interests.

1. If Converse only have its classical style without any development in styles or improvement in designs in the future, is it possible that Converse would lose their customers, in spite of its low prices.

2. What’s the next trend of Converse would be in the market since Converse introduced 2 Chucks signed jointly with Off White? Is it a sign that Nike Co. starts to pay more attention on Converse?

References

Converse Inc. (2018). Retrieved from

https://advantage-marketline-com.proxy1.cl.msu.edu/Product?ptype=Companies&pid=5C9459CB-7774-4D48-82FD-2D9B610E0E51Product?ptype=Companies&pid=5C9459CB-7774-4D48-82FD-2D9B610E0E51

Recovering emotionally from disaster. Retrieved from

http://www.mergentintellect.com.proxy1.cl.msu.edu/index.php/search/companyDetails/18105341/description

Recovering emotionally from disaster. Retrieved from

https://jobs.converse.com/about

Recovering emotionally from disaster. Retrieved from

http://www.mergentintellect.com.proxy1.cl.msu.edu/index.php/search/companyDetails/18105341

Historical Financial. (2016). Retrieved from

http://www.mergentintellect.com.proxy1.cl.msu.edu/index.php/search/companyFinancials/18105341

China-Footwear. (2018). Retrieved from