Converse Shoes All Star

2. Founded in 1908 in North Reading,
Massachusetts by Marquis
Introduced in 1917 “Converse All
Star “
Renamed in 1923 the “Chuck Taylor
( known as Chucks)”
Introduced in 1923 the first
Chucks
 Wore extremely in 30s, 40s,50s
and 60s

3.  Started to product by the early of
1980s tennis and running shoes
 Was official shoe of NBA early 90s
 Had changed its strategy by 1993
 Cancelled in 1992 “Made in USA.”
label
 Nike bought it in 2003
 Signed with Dwyane Wade an
agreement in 2005 for 7 years

4. “They are everywhere”

5. STRENGTHS
Strong Brand Name
Affordable
Endorsed by famous stars
Official shoe of NBA
Wide variety of colors and shoes
Very creative and different fashion
styles
 Created eloborately in the
laborataries by designers, engineers
and biomechanics experts
 Has talented designers
 Manufacturing men’s and Woman’s
clothing, “product development”







6. WEAKNESSES
 Focusing on a particular segment
of people
 Basic shoes
 Deforms easily
 Antiestablishment image like
skateboarders from public
 Using wrong stars for
advertisements such as Dr. J.

7. OPPORTUNITIES
 Nostalgia, retro, punk rock
trends
 Street kids wearing on the
streets
 Reflecting antiglobalization
perspective.
 Secondary firm of Nike

8. THREATS
 Strong competitors in the market
like Nike (26%) and Reebok (23%)
 Secondary firm of Nike
 Losing treasured “ Made in USA”
label
 Unpleasured old guard of Converse

9. What are the core,actual
and augmented product
benefits of the Converse
Chuck?

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

19. What are the sources of
brand equity for both
Converse and Chuck
Taylor All Stars?

20. Official shoe of NBA
Kurt Cobain and famous stars wear
it
Accepted by all social classes
Have loyal costumers who don’t wear
any sneakers except for Converse
Make the foot relax
 Before 1990: “Made in USA”
A lovemark
Sponsoring Olympics
Retro trend and punk rock movement
Affordable

21. Analyze the Nike-era
direction of Converse. (a)
Assess the benefits and
risks of the fashion and
performance strategies
individually, and of the
combined two-tiered
approach. (b) What
targeting and positioning
would you recommend for
the Converse brand in the
future?

22. Before Nike to rescue, company had 180
employees and the sales of 185 millon
dollars. „Dying brand‟
Nike observers believed that Converse
should become a second tier brand.
 Nike raises promotional expenses from
$4 million to $17 million in 2005
However, Exeter Brand Group filled that
gap which is selling cheaper shoes WalMart and Target.

23.  The popularity of Converse in basketball
areas was falling down until Nike signed
agreement with Dwayne Wade under the
“Wade” collection and then gained its
popularity again with promising sales.
Wade bundled with a special edition of
the classic Converse Pro Leather. This
idea comes from “Dr. J” Erving

24. Benefits:

Wide range of Converse types enable
costumers to choose comfortably


Market share increased
12 person design team improves quality
and enlarges the models

Entering into clothing fields can be
benefical because of reaching much
more costumers.

25. Risk:
Old fans of Converse
dissatisfied with the
new image .There is a
possibility of losing
Chuck Taylor customer
base.

26.  After
Nike takeover of Converse
Converse brand has gone under substantial
change and became more fashionable therefore
possible targets for Converse should be
 Upper class society who responses more pricey
models correctly
 Tennis players and athlets :Main focus just
basketball players

27.  1987:
Conteks has the selling license of
Converse
 4th in Europe (After France, Italy,
Germany)
 Target Market: Teenagers
 15.000 sales in 2001
 1.300.000 sales in 2007

28. THANKS FOR
LISTENING