Converse: We Love You, Chucks! Marketing Case
| Converse: | We Love You, Chucks! |
Molly Langan
3/25/2009
|
Situation Analysis
Converse was founded in 1908 and by 1917 the All Star shoes were introduced on the market as an American made product. In 1923 the shoes were renamed the Chuck Taylor, after the semiprofessional basketball player. By 1970, eighty percent of basketball players wore Converse shoes out on the court. In 1983 their revenue was $209 million. Converse faced a lot of competition, and in 1989 they only held five percent of the market share. In 2001 their revenue had dropped to $185 million. Nike bought Converse out in 2003 for $305 million and put more than four million dollars into advertising. Today, Converse has over 1,000 different types of Chucks, a men’s clothing line and a women’s clothing line. Converse is continuing to bring in some revenue for Nike, and below is a SWOT analysis showing Converse’s strengths, weaknesses, opportunities in where they could grow and the threats to the company. SWOT Analysis | Strengths | Weaknesses | * Global Brand Recognition * Recognized Basketball shoe * Advertising and Marketing Strategies * Affordable | * Too many products * Hard to navigate website * Switching the production from American to India * Decreasing revenues | Opportunities | Threats | * Reorganize Converse * Further develop it’s existing Market * Develop new Products * Product Line extensions | * Competition * Cannibalization of Converse Products * Cannibalization of Nike Products |
Converse was able to create a brand name that is still recognized globally; it has been in existence for over nine years. The shoes were, for many years, made in America giving them the ability to promote their merchandise as an American made product. Once the shoes became well known and were being used more and more by basketball players, they were able to convert the “All Star” name to “Chucks.” Chucks became the official shoe
Molly Langan
3/25/2009
|
Situation Analysis
Converse was founded in 1908 and by 1917 the All Star shoes were introduced on the market as an American made product. In 1923 the shoes were renamed the Chuck Taylor, after the semiprofessional basketball player. By 1970, eighty percent of basketball players wore Converse shoes out on the court. In 1983 their revenue was $209 million. Converse faced a lot of competition, and in 1989 they only held five percent of the market share. In 2001 their revenue had dropped to $185 million. Nike bought Converse out in 2003 for $305 million and put more than four million dollars into advertising. Today, Converse has over 1,000 different types of Chucks, a men’s clothing line and a women’s clothing line. Converse is continuing to bring in some revenue for Nike, and below is a SWOT analysis showing Converse’s strengths, weaknesses, opportunities in where they could grow and the threats to the company. SWOT Analysis | Strengths | Weaknesses | * Global Brand Recognition * Recognized Basketball shoe * Advertising and Marketing Strategies * Affordable | * Too many products * Hard to navigate website * Switching the production from American to India * Decreasing revenues | Opportunities | Threats | * Reorganize Converse * Further develop it’s existing Market * Develop new Products * Product Line extensions | * Competition * Cannibalization of Converse Products * Cannibalization of Nike Products |
Converse was able to create a brand name that is still recognized globally; it has been in existence for over nine years. The shoes were, for many years, made in America giving them the ability to promote their merchandise as an American made product. Once the shoes became well known and were being used more and more by basketball players, they were able to convert the “All Star” name to “Chucks.” Chucks became the official shoe