1. CONVERSE: We Love You, Chucks!
QUESTION 1: What are the core, actual, and augmented product benefits of the
Converse Chuck?
SOLUTION:
Core Benefits:
• Classic kicks that fit any look..
• Perceived look of self-expression, free-spirit and creativity.
• Easy to care for.
Actual Benefits:
• Quality.
• Comfort.
• Brand name recognition.
• Packaged in color-themed shoe box.
• Thousand of choices; create your own.
Augmented Benefits:
• 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:
Benefits:
• Minimize production costs.
• Global brand recognition.
• Increase of international sales.
Risks:

2. • Removal of “Made in The U.S.A” label.
• Perception of poor product quality
• Job cuts
The Company:
• HELPED-choosing to outsourced that helped make Converse the success it is
today. Outsourcing helped the company to cut costs; thus decreasing expenses
and increasing revenues.
The Brand:
• NEITHER HELPED NOR HURT- Converse brand recognition was
established in The U.S., so I don’t believe outsourcing affected the brand. It is
the oldest brand of athletic shoes- turned 100 in 2008.
QUESTION 3: What are the sources of brand equity (reputation) for both Converse and
Chuck Taylor All Stars?
SOLUTION:
Converse:
• Brand Awareness/Recognition.
• Logo.
• Brand loyalty insistence.
• 100 years old in 2008
• Consistent Strategic Marketing.
• Cost-always basic, still affordable.
• Effects unique to brand.
• Rubber toe and sole.
• Canvas.
• Brand Association.
• Retro-fashion.
• Rockers.
• Artists/Actors
• Skaters.
• Surfacers.
Chuck Taylor All Stars
• Brand awareness “Chucks”.
• Brand loyalty.
• ‘Chucks’ and other variations of all the stars.
• Strategic Global Targeted Marketing.
• Perceived quality.
• Everyday kicks.

3. • Comfortable.
• Effects unique to brand.
• Design your own.
• Refusal/Lack of alternatives.
• Brand Associations.
• Basketball.
• Famous athletes / Player endorsement.
• Unisex.
QUESTION 4: Analyze the Nike-era direction of Converse
SOLUTION:
NIKE- ERA DIRECTION OF CONVERSE
• 2003 Nike purchased Converse for 305 millions.
• After buyout Nike, Nike left Converse management to implement its own
business strategies; also allowed Converse products to go without the Swoosh’
logo.
• Nike invested in Converse advertising: 2004 more than $4 million, 2005 over
$17 million.
• Marketing investment allowed for first Converse television commercial in
over 10 years: “ The first School”.
• Nike move converse in two directions: Fashion and Performance.
• Nike gives access of labs ,designers, biomechanics, experts and engineers to
Converse.

4. INSTITUTE OF BUSINESS & TECHNOLOGY
BIZTEK (EDC)
Principles of Marketing
(MKT 201)
Assignment No.4
Company Case:
Converse: We Love You Chucks
Submitted to: Sir Hammad Tahir
Submitted by: M.Burhan Siddique
Program BBA (Hons) Evening
I’D (BBE/599)
Dated:
July 1,2010