Converse We Love You, Chucks! Marketing Case - 1711 Words

| 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†¦show more content†¦Also, Converse also has the risk of cannibalizing Nike’s products. Nike and Converse have similar merchandise and if Converse puts out a hot product, it can back lash causing a similar Nike product not to sell. They also have to be conscious of current competition. Companies that target the sa me market as Converse are Adidas, Reebok, New Balance, Puma, Sketchers, and Vans. Problem / Opportunity Even though Converse is making a small profit for Nike, the problem is whether Nike should write off the $305 million spent on the company and discontinue production or if they should continue and make changes within Converse to make it more profitable. Identification of Alternatives There are several alternatives and options Nike can do with Converse, they include: 1. Kill the Converse Brand and write off the money. 2. Reduce Variations among similar products. 3. Cut the clothes line. 4. Target one type of market: fashion or sport. 5. Position products in more stores Criteria All of the alternatives listed above will help the company increase their sales, but based on the criteria the company is using to evaluate them will reflect which option will be the smartest move. Below is a list of criteria that was used to evaluate each of the five alternatives. 1. Sales 2. Profitability 3. Penetration of competitors 4. Market Share 5. Financial Risks The criteria was chosen inShow MoreRelatedEssay about Converse Case Study1803 Words   |  8 PagesConverse: Shaping the Customer Experience They dominated the basketball courts – both amateur and professional – for more than forty years. The first U.S. Olympic basketball team wore them, and Dr. J made them famous in the NBA. Punk rocker Joey Ramone made them standard issue for cult musicians; indeed, Kurt Cobain even donned a pair when he committed suicide. Today, a broad range of consumers, from the nerdiest of high school students to A-list celebrities, claim them as their own. What areRead MoreHistory of Converse3778 Words   |  16 PagesRaffles College of Design and Commerce Strategic Brand Management Born in Basketball, raised by Rock and Roll Converse – A case study Nailton Oliveira 114MDA3530 April, 2012 INTRODUCTION Branding is, in fact, in the spot these days. They are everywhere. Brands decide where economy or fashion goes. Brands gives names to new actions, make the world even more global and are synonym of power. Knowing how to create a reputation of the company with accurate strategies and acknowledgingRead MoreProduct Placement10682 Words   |  43 PagesProduct placement, or embedded marketing, is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the good or service is featured. Product placement became common in the 1980s. In April 2006, Broadcasting Cable reported, Two thirds of advertisers employ branded entertainment—product placement—with the vast majorityRead MoreProduct Placement10670 Words   |  43 PagesProduct placement, or embedded marketing, is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the good or service is featured. Product placement became common in the 1980s. In April 2006, Broadcasting Cable reported, Two thirds of advertisers employ branded entertainment—product placement—with the vast majorityRead MorePrinciples of Marketing: Nike Inc9497 Words   |  38 Pagesabout combining the love for sports with a mutinous and headstrong nature to think out of the box by means of innovation and inspiration (Katz 1994) * Nike’s mission statement is all about combining the love for sports with a mutinous and headstrong nature to think out of the box by means of innovation and inspiration (Katz 1994) Principles of Marketing Principles of Marketing TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION 3 The Story So Far 3 MARKETING ORIENTATION 3 TypesRead MoreNike Marketing Plan Essay7652 Words   |  31 PagesNike Marketing Plan By: Marketing Management Ââ€" MM522 March 2004 Outline I. Executive Summary II. Table of Contents III. Company History IV. Marcoenvironment a. Demographic b. Economic c. Social d. Political e. Technological f. Ecological V. Competitive Advantage a. Industry Environment b. Operating Environment VI. Four Ps of Marketing a. Product b. Place c. Promotion d. Price VII. Core Competencies a. Strengths b. Weaknesses c. Opportunities d. Threats VIII. BusinessRead Morenike vs adidas Essay14192 Words   |  57 PagesVS 1 A COMPARITIVE ANALYSIS OF MARKETING STRATERGIES FOLLOWED BY NIKE AND ADIDAS TEAM MEMBERS ANUPAMA VENU CLAES JOTORP DEEPAK TUSHIR GUSTAV TENERZ SAIRAM KRISHNAN SANJAY SHARMA SUNANDA SURESH 09014 09126 09032 09128 09088 09090 09112 2 INDEX 1. INTRODUCTION 1.1. BRIEF ANALYSIS OF INDUSTRY 1.2. BRIEF DEFINITON OF INDUSTRY 1.2.1.TRENDS IN THE INDUSTRY 1.2.2.MARKET ANALYSIS 1.2.3.MAJOR PLAYERS AND MARKET SHARES 1.3. MAJOR FORCES SHAPING THE INDUSTRY 1.3Read MoreCrossing the Chasm76808 Words   |  308 PagesCROSSING THE CHASM. Copyright  © 1991 by Geoffrey A. Moore. All rights reserved under International and Pan-American Copyright Conventions. By payment of the required fees, you have been granted the non-exclusive, non-transferable right to access and read the text of this e-book on-screen. No part of this text may be reproduced, transmitted, downloaded, decompiled, reverse engineered, or stored in or introduced into any information storage and retrieval system, in any form or by any means,Read MoreKfc and Global Fast Food Industry11778 Words   |  48 Pagesorganized into three divisions: soft drinks, snack foods, and restaurants. Restaurant Business and Acquisition of KFC PepsiCo believed that the restaurant business complemented its consumer product orientation. The marketing of fast food followed many of the same patterns as the marketing of soft drinks and snack foods. Pepsi-Cola soft drinks and fast-food products could be marketed together in the same television and radio segments, thereby providing higher returns for each advertising dollar. RestaurantRead MoreProject Managment Case Studies214937 Words   |  860 PagesPROJECT MANAGEMENT CASE STUDIES, SECOND EDITION - PROJECT MANAGEMENT CASE STUDIES, SECOND EDITION HAROLD KERZNER, Ph.D. Division of Business Administration Baldwin-Wallace College Berea, Ohio John Wiley Sons, Inc. This book is printed on acid-free paper. @ Copyright O 2006 by John Wiley Sons, Inc. All rights reserved. Published by John Wiley Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada No part of this publication may be reproduced, stored in