Friday, May 9, 2008

Entry9_20400495

Converse's All-Star Image


Summary

Converse is a sneaker maker that was founded by Marquis M. Converse a century ago and had gone over many ups and downs. Converse’s first model was a rubber-soled shoe that followed by the innovative lightweight All-Star basketball shoe with rubber outsole, durable toe cap, and ankle patch that helped stabilize the foot. But in the 80’s the company has faced a crisis. Companies like Nike, Adidas and Reebok transformed the athletic shoe industry by designing sneakers for superstar like Michael Jordan. Star marketing became trend when Converse still sticks on to the Charles H. Taylor who was ‘3os basketball star. Finally, Converse was acquired by Nike in 2003. Now Converse is changing their marketing strategy by changing the target and their method of marketing.

First, they started to focus to the teenagers who are sensitive expressing their selves. More specifically they are focusing on “optimistic rebel”, according to the interview of John Hoke, the unit’s new global footwear vice-president. These “optimistic rebel” is who wants to be different, irreverent, and creative. Additionally, Converse wants their targeted consumers to think their shoes to be treated as a canvas that one can express one’s thoughts.

Second, they changed the product strategy. ‘Celebrate the ‘then’, leverage for the market now, and frame the future with a full range of products.’ This is realized by using Kurt Cobain’s (late rock star) art work, supplying their shoes to the Kennedy family, Barack Obama, and also work with young athletes like Dwanyne Wade (NBA star).

Opinion

It is crucial to choose the right segment before targeting. Converse didn’t have a selected target in the past and people couldn’t build a brand image. After sold to Nike, Converse can finally make a differentiated image compared to their competitors. As we learned in class, segmentation targeting and positioning is an essential step for any company. Converse itself couldn’t solve the problem so their failure was inevitable. After changing their strategy based on STP, the sales upraised and the consumer’s perception also ameliorated.

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