Brand and Converse Chuck

1. We Love You, Chucks! QUESTION 1: What are the core, actual, and augmented product benefits of the Converse Chuck? Solved: • 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? Solved: • Minimize production costs. • Global brand recognition. • Increase of international sales. Removal of “Made in The U.S.A” label. • Perception of poor product quality • Job cuts 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. • 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. 2. QUESTION 3: What are the sources of brand equity (reputation) for both Converse and Chuck Taylor All Stars? Solved 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. • Comfortable. • Effects unique to brand. •