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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
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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 FeaturesPackaging • 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 • Rubber sole, sidewall, and toe • ‘Racing’ and heel stripe • Canvas body and lining • Stitch and lace • Logo heel, inside, sole • Double eyelets on inside
Target Market Kurt Cobain • Intro: Originally target sports players basketball • 1940’s emerged in pop culture • Growth: Target “youth” female and male • Musicians, artists, film stars • Maturity/Decline/Remarketing: All ages, all sizes • Pass through generations Converse “lifestyle” “Pistol Pete” Maravich Sylvester Stallone in Rocky (1976)
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
Channels of Distribution • Producer Retailer Consumer • Producer WS Retailer 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- Back to school, summer events, holidays • 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”
Early Ads “Keep it old school” “Wear your art on your shoes” 1991-Mighty Mighty Bosstones 70s 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 British music • Aug 2009: Woolrich Clothing Collaboration
Public Relations • Marquis Mills Converse sports shape our country • ‘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 DC Men’s Purist Shoes- $65 “Cheapskate” Etnie’s Shoes- $55 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/e3i3a6a726c3dd89a14536244fe5a5ec60c • http://www.converse.com/About/FactSheet.aspx?id=9 • http://www.converse.com/#/products/shoes/converseone/builder/chuTayHiCan0901 • http://www.converse.com/Help/OrdersShippingAndReturns/USCustomers.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=Converse • 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&shopGroup=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%20background/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=8hMEAAAAIBAJ&pg=6262,1133650&dq=cost+of+converse+shoes&hl=en • http://books.google.com/books?id=ko_a_Ij3TRMC&pg=PA29&sig=3DibJPF6ZMH0s2O1M-Ao-gJ3A6c&hl=en#v=onepage&q&f=false