Company Case 1: Converse
Chapter 1 Case: Converse
Converse, a brand of basketball shoes that became familiar with success from the start but dropped into bankruptcy in the early 2000’s, is now slowly climbing its way back to the top. Since 1908 when Converse was founded it was very popular among many athletes, artist, musicians, and designers. Converse was well known for its original canvas high top All Star or Chuck Taylor. In the 1970’s several companies started producing this “high-top” shoe, which caused Converse’s sales to decline. Eventually Converse had to declare bankruptcy in 2001; this is when Nike acquired the Converse Corporation. Although Nike owns Converse, Nike leaves Converse management alone to help implement its own strategy. Some analysts worry that Converse might deviate away from its authenticity of the All Stars by being under Nike. Converse has kept the authenticity but has added some unique twists to each new design of Converse. The key to Converse’s success? Geoff Cottrill, Converse’s chief marketing officer has a specific strategy he calls “the good party guest.” By being a good party guest—you bring something to the table and you listen more than you talk. This is how good relationships with customers have been managed and continue to grow because it participates in customer’s discussions rather than dictating them. This “stand back” approach is what has helped Converse to climb back to the top. By showing more interest in the customer’s wants and need for a good quality shoe but has its own style to it, this has satisfied a wide range of customers. Converse believes that authenticity is the most important trait and the customer experience should be driven by the customer.
1. What are some examples of the needs, wants, and demands that Converse customers demonstrated? Differentiate these three concepts. a. Needs: the customers need a good quality and inexpensive shoe. b. Wants: The customer wants the authentic Converse
Converse, a brand of basketball shoes that became familiar with success from the start but dropped into bankruptcy in the early 2000’s, is now slowly climbing its way back to the top. Since 1908 when Converse was founded it was very popular among many athletes, artist, musicians, and designers. Converse was well known for its original canvas high top All Star or Chuck Taylor. In the 1970’s several companies started producing this “high-top” shoe, which caused Converse’s sales to decline. Eventually Converse had to declare bankruptcy in 2001; this is when Nike acquired the Converse Corporation. Although Nike owns Converse, Nike leaves Converse management alone to help implement its own strategy. Some analysts worry that Converse might deviate away from its authenticity of the All Stars by being under Nike. Converse has kept the authenticity but has added some unique twists to each new design of Converse. The key to Converse’s success? Geoff Cottrill, Converse’s chief marketing officer has a specific strategy he calls “the good party guest.” By being a good party guest—you bring something to the table and you listen more than you talk. This is how good relationships with customers have been managed and continue to grow because it participates in customer’s discussions rather than dictating them. This “stand back” approach is what has helped Converse to climb back to the top. By showing more interest in the customer’s wants and need for a good quality shoe but has its own style to it, this has satisfied a wide range of customers. Converse believes that authenticity is the most important trait and the customer experience should be driven by the customer.
1. What are some examples of the needs, wants, and demands that Converse customers demonstrated? Differentiate these three concepts. a. Needs: the customers need a good quality and inexpensive shoe. b. Wants: The customer wants the authentic Converse