Converse All Star Shoes

By Heather Standish

Fun Facts

• 1918: 20,000 shoes made a day • Chuck Taylor made a salary, but no commissions • End of 60s: 90% of basketball shoe market • 1984: LA’s Olympics: Official Sports Shoe Provider • 2002: Triple profit compared to 2001 • Sold in more than 90 countries

Converse History

• Marquis Mills Converse: founder • Since 21, learn shoe manufacturing • 1908 founds Converse Rubber Shoe Company • 1917: All Star-performance basketball shoe • 1918-1968: player Chuck Taylor endorses • 1962: Low-cut Oxford introduced • 1974: One star skateboarding shoe introduced • 1985: Official shoe of National Basketball Association • 2003: Nike acquired Converse for $305 million

Product Features

• Rubber sole, sidewall, and toe • ‘Racing’ and heel stripe • Canvas body and lining • Stitch and lace • Logo  heel, inside, sole • Double eyelets on inside

Packaging

•Converses in special Converse box, tissue paper around •New box with patch logo on top •Converse star on sides •“CONVERSE” on length •‘Eyelets’ on side •Stripe along bottom

Kurt Cobain

Target Market

• Intro: Originally target sports players  basketball • 1940’s emerged in pop culture “Pistol Pete” Maravich • Growth: Target “youth”  female and male • Musicians, artists, film stars • Maturity/Decline/Remarketing: Sylvester Stallone in Rocky (1976) All ages, all sizes • Pass through generations  Converse “lifestyle”

Product Planning

• Innovation- new style basketball shoe • 40s- boots and war gear for soldiers, football, running • 50s- work boots • 60s- blue heel patch, higher rubber, wrestling • 70s- skateboarding, ski boots, heel patch change, smaller toe, longer tongue • 80s- basketball shoe redone, funky colors to match the times, thinner laces, bigger toe • 90s- shorter, flat laces • Today- new materials, simpler logos

Product Line/Mix

• Product Line (types of shoes)--Chuck Taylor, Jack Purcell, Converse by John Varvatos, Converse (PRODUCT) RED™ , Basketball, Skate, Running and Court • Current Collections--Chuck It, Prom, Graduates, Music Collaborations, Chuck Taylor All Star Slim, One Star Suede, Kids, Classic Chucks • Product Mix--Men's Clothing, Women's Clothing, Converse by John Varvatos Clothing, (Sun)glasses, Accessories

Product Life Cycle

Channels of Distribution

• •

Producer Producer

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Retailer WS

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Consumer Retailer

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Consumer

• Retailers: Online, Journey’s, dELiA*s, Hot Topic, Zumiez, Converse Outlet Stores, almost any store with shoes • Shipped by UPS or by air • Originally made in USA, 1990’s switch to Japan and China

Pricing Strategies

• Intro/Growth: Skimming the Cream • 1965- $3.25-$9.95 (double regular) • Maturity/Decline: Penetration Pricing • 1970s- $30-$35 (others $60-$200) • 1990- $29.95 (inexpensive) • Remarketing: Somewhere in between • Today- $45-$65 (about $20 more)

Promotional Strategies

• • • • Have people design shoes

Pulsing

- new product lines/collections

Flighting

holidays - Back to school, summer events,

Continuous

- less  rely on fans more

Personal Selling Activities

• Consumer: -Sales Associates • Industrial: -Incentives: ex. dELiA*s has every color and Journey’s gets exclusive designs -Presentations of new products

Advertising

• Feb 2008 “Connectivity” Ad Campaign bring old icons with new to celebrate 100 years of Converse • June 2008 “Microsites” by Anomaly • Summer 2008 “Kurt Cobain” Collection part of Converse Century Campaign • Feb 2009 “Welcome to the Converse Century” Campaign • Apr 2010 “All star for all”

70s “Keep it old school”

Early Ads

“Wear your art on your shoes” 1991-Mighty Mighty Bosstones 40s/50s 2009/2010

Advertisements

2008 “Connectivity” Campaign 2009 “Converse Century” Campaign 2008 “Kurt Cobain” All Stars Campaign

2010 “All star for all” Campaign

Special Ads

Xmas 2008 Valentine’s Day 2010

Sales Promotion

• Sales Associates: promote exclusive designs in store, special prices and sales • Online sales and discounts ex. Up to 40% off! Or...regular sales  $5-$20 off • Free shipping

Publicity

• Feb 1996: All Star Brand Strategy  All Star Patch returns • Jun 2008: Web Interactions Sites • Jan 2009: Wrapped in Books • Feb/Mar 2009: Ozzy & Floyd Collaboration  music British • Aug 2009: Woolrich Clothing Collaboration

Public Relations

• Marquis Mills Converse  our country sports shape • ‘Innovative’, ‘defined sports footwear categories’ • ‘transcended generational cultural and socio economic boundaries’ • • • ‘global youth symbol of originality and individuality’ Communication kits Sandstrom Partners

Competition

Adidas Jeremy Scott Nizza Shoes- $90 Nike Air Jordan I Retro Shoes- $100 • Converse: $45-$65, Competition: $55-$100 • Previously: Keds, Reebok, Adidas • Nike- certain shoes, even though Nike bought Converse • Etnies, DC Shoes, Element Footwear other “popular” alternative shoes “Cheapskate” Etnie’s Shoes- $55 DC Men’s Purist Shoes- $65 Element Churchill W.O.W Shoes- $55

Sources

• • • • • http://www.converse.com/ http://www.converse.com/#/products/shoes/allshoes • • http://www.converse.com/#/products/collections/allCollections http://www.popculturepost.com/2008/02/28/converse-launches connectivity-ad-campaign/ • http://www.thedailyswarm.com/swarm/kurt-cobain-converse-custom kicks-coming/ • * http://www.converse.com/About/PressRelease.aspx?id=71 • * • * http://www.allbusiness.com/marketing-advertising/public relations/7195894-1.html

http://www.converse.com/About/PressRelease.aspx?id=66 • * http://www.adweek.com/aw/content_display/news/digital/e3i3a6a72 6c3dd89a14536244fe5a5ec60c http://www.converse.com/About/FactSheet.aspx?id=9 http://www.converse.com/#/products/shoes/converseone/builder/chu TayHiCan0901 http://www.converse.com/Help/OrdersShippingAndReturns/USCusto mers.aspx

Sources Continued

• • • • • • • • • • • • • http://www.businesshistory.com/ind._footwear.php

http://www.squidoo.com/converse-chuck-taylor-black http://www.squidoo.com/converse-chuck-taylor-black http://www.flickr.com/photos/extraverage/546810666/ http://www.theconverseblog.net/2009_02_01_archive.html

http://skateandannoy.com/page/15/ http://www.sneakerinformer.com/special-editions/converse-rens-all star-all-star-revolution-and-pro-leather-with-wooden-box/ http://www.flickr.com/photos/16415249@N03/1795287672/ http://theselvedgeyard.wordpress.com/2009/01/09/pistol-pete maravich-the-original-all-star/ http://brothersmcc.blogspot.com/2009/03/ups-does-not-support bullies.html

http://members.virtualtourist.com/m/8da08/c1f6c/c/ http://blogs.app.com/thelook/2008/12/13/a-few-of-our-favorite things-converse-sneaky-santa/ http://www.shop2world.net/blog/?cat=5829

Sources Continued

• • • • • • • • • • • • http://stylefrizz.com/200803/kurt-cobain-converse-grunge-is-back/ http://www.conversestore.net/Celebrities.html

http://www.ioffer.com/i/1991-Converse-Dickie-Barrett-Bosstones Shoe-Print-Ad-78403911 http://electric-sun.co.uk/vintage-advertising/ http://www.vashyoung.com/ http://hypebeast.com/2010/04/converse-jack-purcell-2010-fall preview/ http://www.shopstyle.com/browse/tees-and-tshirts/Converse http://www.nicekicks.com/2010/04/converse-chuck-taylor-chuck-it/ http://www.remeyewear.com/ecatalog/index.php?collection=Convers e http://dmtshirtdesign.com/faq http://www.closetmix.com/info/community-official-brands.htm

http://www.deathrockmagazine.com/buy-deathrock magazine/distribute-deathrock-magazine/

• • • • • • • • • • • • •

Sources Continued

http://www.fundinguniverse.com/company-histories/Converse-Inc Company-History.html

http://www.converse.com/#/products/shoes/sales http://www.converse.com/Help/RetailLocator.aspx

http://www.v2m.com.br/2009/02/ad-converse-all-star-2009.html

http://nylonmag.com/nylonblogs/page/318/ http://karenincolor.blogspot.com/2009/05/take-new-look.html

http://hypebeast.com/2009/05/woolrich-x-converse-chuck-taylor-all-star collection/ http://sneakers.pair.com/chuck2k.htm

http://thegloss.com/fashion/converse-ozzy-osbourne-pink-floyd/ http://www.sodahead.com/user/profile/1349925/panic-its-cody/ http://www.shopadidas.com/product/index.jsp?productId=3786215&cp= 3748174.3748184.2039609.2039613.2012797&cid=G16815&shopGrou p=R http://www.sneakerfiles.com/2009/03/11/air-jordan-i-1-2009-preview/ http://phillyist.com/2008/12/16/philly_phashionista_holiday_shoppin.php

Sources Continued

• • • • • • • • • http://www.polyvore.com/converse_logo/thing?id=3674667 http://media.photobucket.com/image/converse%20logo%20black%2 0background/climaxxds28/converse-logo.jpg

http://www.griptape.com/dealers.html

http://www.lynchpop.com/services.htm

http://etnies.com/shop/cheapskate-3/black-grey/ http://store.dcshoes.com/product/index.jsp?productId=4014811&cp= 3448740.3448746.3436135

http://catalog.elementskateboards.com/shoes/view/2124/Churchill Blk/Gry/Red(W.O.W.) http://news.google.com/newspapers?id=mrwsAAAAIBAJ&sjid=8hM EAAAAIBAJ&pg=6262,1133650&dq=cost+of+converse+shoes&hl=e n http://books.google.com/books?id=ko_a_Ij3TRMC&pg=PA29&sig=3 DibJPF6ZMH0s2O1M-Ao-gJ3A6c&hl=en#v=onepage&q&f=false