Executive Summary
The statement analyzes the marketplace for Converse's Chucks All Star range of footwear in america of America and includes a take a look at other competitive brands for comparability. Graphs depicting market data in terms of online sales in US us dollars have been included to aid the studies.
The report segments the marketplace for Chucks on basis of demographic, psychographic and behavioral factors categorizing the U. S. populace into different age groups, generations, income groups, lifestyles and attitudes. The report then moves on to highlight the mark market for the canvas sneaker. It's been noticed that Chucks' marketing is targeted towards the younger decades (Gen X and Gen Y [Echo Boomers]), particularly students and entry-level pros. The target market comes in the 'Aspirer', 'Explorer' and 'Reformer' lifestyle categories and associates the brand with 'self-expression' and 'creativity'.
The statement evaluates the market position of Chucks in accordance with its competitors taking into consideration the benefits offered by the merchandise in terms of its features, designs, price and image. It has been witnessed that Chucks have been situated in the market as reasonably priced fashion shoes which supply the owner with a sense of individuality.
Also included in the report will be the product's marketing combine and its impact on the marketplace position and customers' buying action. Tactical marketing tools, "4P's", are thoroughly employed by Converse to market Chucks. Aside from being completely customizable, the sneaker is moderately priced, offers a variety of designs and habits, and is ideally available for purchase through the state company website, manufacturer outlets and through famous sellers like 'Wal-Mart' and 'Payless'. The promotion of Chucks is diverse and will involve celebrity endorsements, event sponsorships and internet promotion through networks. Also, Converse's method of market Chucks has been critically assessed in terms of current and future opportunities, providing advice to increase its market share and dominance.
Finally, the article draws a bottom line of the marketplace talents and weaknesses of Chucks.
Brief Advantages to Converse and Chucks All Star
It all began in 1908, when Marquis M. Converse launched the Converse Rubber footwear Company in Malden, Massachusetts. In 1917, the company revolutionized golf ball by producing the world's first canvas high-top performance baseball shoes, known as the "All Star". Five years later, a semi-professional basketball player, Charles "Chuck" Taylor officially joined up with Converse as America's first ever athletics player endorser; his personal was then added two years later in the All Celebrity patch as well as for another four ages, "Chucks", as they truly became known, were the shoes to get, specifically on the basketball court.
Converse shoes became the number one footwear on the list of teenagers, who wore them as symbolic of junior rebellion in the 50s and then for the same reason they continued to be popular in the 70s and 80s.
As described in the objective statement of the business:
"Our MISSION is to deliver personal service to your customers knowing that soon we can be friends. Our trust is that people provide the same shoes our owner's father wore for cross country in 1965, and his grandfather used to experiment with stickball in the streets of Philadelphia in the 30's. " (About Us, www. converse. com)
In June, 2003 Nike bought Converse out for $305 million and has since spent more than four million dollars into its advertising. Today, Converse has over 1, 000 different kinds of Chucks providing in the market to individuals and organizations, all with the same goal -
"WEAR A SHOE THAT MAKES A Declaration".
Market Segmentation, Target Market and Placement of Chucks
3. 1 Market Segmentation
Converse cases to be the first boot company to unveiling shoes with 'Personal Expression' and till day Chucks enjoy the status to be the most popular shoes with this advantages. Despite this simple fact, Converse prefers to target only on certain preference clusters and selects goal marketing over traditional mass marketing.
The market for the Chucks has been segmented on basis of the next factors:
Demographic - The U. S. people is primarily categorized on basis of age, discretionary income and technology. The age categories have been put into four parts, specifically:
under 13,
13-19,
20-35 and
Above 35.
Further, the income groupings have been divided into:
no income (students),
upto $30, 000 (young entry-level professionals) and
Above $30, 000 (top middle income).
The decades have been segmented into seniors (blessed between 1946 and 1964), Technology X (given birth to between 1964 and 1984) and Technology Y (blessed after 1984).
Psychographic - Furthermore, the marketplace has been classified based on lifestyle and personality. The populace of the U. S. has been segmented on basis of lifestyle into six categories, namely:
Resigned - Rigid, authoritarian, chauvinistic (older);
Mainstream - Home, conformist, typical (Part of the mass, favoring big brands);
Aspirer - Materialistic, acquisitive, image mindful, overall look more important than content quality (Younger, clerical/sales type occupation);
Succeeder - Strong goal orientation, self confidence, work ethic (Top management);
Explorer - Energy-autonomy, exciting (Young - students); and
Reformer - Independence from restriction, intolerant of bad taste ( Advanced schooling)
Behavioral - The market has been further segmented on basis of devotion status into:
Hard-core loyals
Split loyals
Shifting loyals
Switchers.
Also, attitudes of the American populace have been used to factor the market into:
Upbeat enjoyers
Insecures
Financial positives
Converse has analyzed web users' online activities to determine who is probably to be thinking about its product, which enables them to place ads on whatever sites those individuals are visiting. For example, behavioral sections such as:
Fashion-interested
Outdoor sports activities enthusiast
Soccer Mommy; would be based on the internet pages been to by the user.
3. 2 Goal Market
With respect to the segments classified above, the Chucks have been designed to target two age groups: the Teenagers, which range from 13 to 19 years and the Entry-level professionals ranging from the age of 20 to 35. The Chucks are made for both man as well as the female consumers with different variations and patterns for both. The product also offers a unisex range to its consumers. Chuck's online marketing strategy also targets the zero, mid and upper range income organizations. The marketing target lays mainly on younger generation, Era X (Gen X) and Era Y (The Echo Boomers), who land in the 'Aspirer', 'Explorer' or 'Reformer' category predicated on lifestyles.
The stand below depicts the target market for chucks:
3. 3 Product Positioning of Chucks relative to its competitors
Converse once used to are a symbol of athletic shoes. Now, the brand reflects a fashion statement for the "retro-modern sub-culture" prevailing today and it is promoted as a 'Vintage shoe' for the new technology. Converse has bought a good position in the buyers' minds through superior product characteristics and carefully selected price, image and quality, in doing so offering the product differently than its rivals. The company offers the product in a number of colors and styles at a cheap price with high branding, which eventually really helps to position the Chucks, in the clients' point of view, as trendy yet simple shoes.
Converse has used the 'Cultural Sign Approach' to position Chucks in the market by associating the product with the golf ball story Chuck H. Taylor and appending his signature with the brand company logo. The brand value of Converse is in a way that owning a pair of Chucks is the same as owning a piece of history, which apparently is a value proposed by nobody else on the market.
Another gain Converse loves over its opponents is the connection of the brand with music. Brands act like information tags in consumer remembrances (Blythe, 2006). The shoe commenced to be correlated with punk rock and roll and counter-top culture after being worn by the bands 'The Ramones' and 'Blondie', who communicated with the public through both, strong music and fashion assertions. The Ramones used Chucks as part of their avenue image, donning blue skinny jeans and dark leather jacket with them whereas Blondie gave the footwear a fashionable menswear revamp as the strap members wore Chucks with dark-colored pants and jackets, tight tee shirts and ties on the recording 'Parallel Lines LP's cover. Adopting the 'Product User Approach' to put the Chucks Converse in addition has collaborated with artist John Varvatos and released a assortment of shoes motivated by past due Kurt Cobain. "Cobain was often seen using Converse and was wearing Chucks when he killed himself. The Converse Cobain collection has received a combined response from Nirvana lovers who have noted that Cobain was particularly concerned about corporate appropriation of counter culture value. " (From Golf ball to Blondie, the storyline of converse, 2010)
The unique offering proposition (USP) of Converse All Star is their simple design, using that your consumers declare the possession of the old-school substance. The traditional 2-ply canvas and silicone single has been the only design that Converse shoes have revolved around and always will.
Apart from a variety of patterns and colors to choose from, Chucks also come in low ankle height design and high boots to suit the design of every specific. They compliment almost all outfits for both the genders. Whether it be under a pair of skinny denims, or a short skirt, Chucks can give a trendy turn to all. It has additionally been a trend amongst young people to coloring the shoes highlighting their individualism.
Even though Converse has developed a solid brand value among the prospective customer base with its useful marketing strategies, it can be advised that Converse should widen its range by targeting other age ranges as well. Toddlers, for instance can be centered upon. Also, because the market for eco-friendly products is growing, Converse should aggressively promote its 'Eco-sneaks', which are sidelined.
Marketing Mixture and Market Position of Chucks
This section explains the way Converse uses the tactical marketing tools for marketing Chucks in america. This section will cover the product attributes, pricing, distribution programs and promotional activities of the Chucks.
4. 1 Product
The core benefits associated with the product include the actual fact that Chucks are traditional kicks that fit any look. They provide a identified look of self-expression, free-spirit and imagination for each owner. Also, Chucks are easy to care for and teens favor them because of the zero-maintenance feature that originates from a straightforward canvas and plastic design.
The actual advantage of the boot is its beautiful quality. The Chucks use 2 ply canvas and a durable rubber toe-guard, which protect your legs. Although Chucks are not suitable for athletics, they feel quite comfortable and also have a reasonably simple design. The buyer can choose from hi-top, low-top, X-Hi and Slip-On.
Their capacity to transcend cultures is unique alone; they charm to punks, rebels, runners, and kids.
Even after acquiring Converse, Nike preferred to market the brand with the same name. Since Converse is an established brand on the market of canvas shoes and increasing a brandname to related products reduces the cost of launching a fresh brand, it decreases the risks involved. (Tauber, 1981; Aekar & Kellar, 1990 & Recreation area & Srinivasan, 1994 cited in Grime et al. , 2002)
Augmented benefits include, the consumers being offered with a choice to buy a customizable shoe with user-generated content, allowing users to create and choose colors for the whole shoe. Apart from all these benefits proposed by Chucks, they also come in limited editions for many who want an exclusive shoe. Converse helps to keep coming up with web exclusive offers to increase sales and make consumers revisit the site frequently.
The sales and purchase contract of Converse offers an easy go back within 30 days if the buyer happens to be unsatisfied with his online purchase.
Price
"Brand Management, customer awareness and loyalty, is directly linked to the price, therefore maintenance of the partnership between brand images; quality and price need to be dependable" (Johnson, G & Scholes J 2004)
Converse's Chucks are listed quite reasonably in accordance with its competitors. Similarly, where brands like Sketchers, Vans, Levis, Adidas and Lee Cooper, offer similar quality and style for a higher price, Converse All-Stars don't usually cost more than $35-60.
Consumers can also avail the 'Just Reduced' and 'Previous Chance' offers on particular shoes while purchasing online. The business usually provides discount coupons or vouchers on in-store buys which can be utilized during the next buy.
Place/Distribution
Converse has a total of 53 outlet stores in the U. S found in all major cities like California, Florida and Texas. (Store Locator, www. converse. com)
Apart from exclusive Converse Stores, the product is also allocated to major sellers and is sold to the consumer through a variety of stations. A well-positioned brand often brings about better conditions of business and lower special discounts within the trade which lowers the functional costs and increases profit margins (What's in a name?: Branding: what it means to you as well as your customer, 2005, p. 28). Converse and its most renowned selection of shoes, Chucks, are another example for this. Chucks catapulted the company to become a global leader in canvas shoes, which gives the company sufficient bargaining electricity with its vendors. Chucks can also be bought online from Converse's official website www. converse. com.
Promotion
Apart from contending in cost, Converse has to combat for market talk about through strategies like strengthening brand image and product proliferation. The brand image of Converse is created by comprehensive marketing campaigns and movie star endorsements. The merchandise has already established a collection of classic advertising after Nike spent a sum of $4 million post its takeover of Converse. The physique below shoes the expansion in the sales of Converse after Nike pushed its advertising.
Sales, 2005-2009 (in millions $)
Source: Nike, Inc. gross annual reports and pr announcements.
Chucks have been promoted by famous personalities from the field of athletics, music and entertainment. Converse has been positively building up a existence within the hip, indie/different music children culture for the better area of the past decade, in particular emphasizing its retro-tinged Chuck Taylor All Celebrity brand. Previously, the business has tapped musicians like Tokyo Law enforcement Team and Matt & Kim to create shoes and sponsored collaborative singles from blog-hyped functions, including a recent release from Best Seacoast, Child Cudi, and Vampire Weekend's Rostam Batmanglij. The business also sponsors rock concerts to market its brand.
Since Converse is more like a community, a part of its advertising is done by its existing consumers through Word of Mouth (WOM) and internet sites.
In light of the above mentioned points, I feel that Converse has thoroughly used the tactical marketing tools, 4P's, to position Chucks on the market. In addition to the distribution stations it employs, Converse also needs to consider using 'Tattoo Parlors' as another potential wall plug for Chucks. 'Chuck Trucks' can be mobile vans for bystanders to get the sneaker in a convenient way. Co-branding with manufacturers of fashion outfits of famous brands Ed Hardy and MTv can also boost the sales of Chucks. The 'Fine art of Chuck' can be a design effort where anyone, from a fulltime designer to those with a creative flair, can transform their couple of Chucks into works of art. Sponsorships of college/school incidents and conducting stock travels for students can prove to be another efficient measure to market brand recognition and increase brand devotion in the mark market.
Influence of Marketing Mixture on Buying Behavior for Chucks
Though the marketing combine needs to be updated frequently to suit the varying needs of the existing customer base and foray into newer market segments, Converse has always promoted Chucks as an affordable trendy sneaker for children.
Its classic customizable range of kicks and association with music since decades are a solid fascination to the followers of punk rock. Colors, styles, fashions, and what is apt to be "hot" are important criteria in the design of fashion sneakers, and Chucks meet them all. In addition, brands make it much easier to identify and evaluate products and decrease the hazards related to purchasing new products (Washington & Miller, 2009). Converse's brand familiarity influences the buyer's decision to buy Chucks every time he strolls into a store with the intention of buying a set of shoes.
Chucks are affordable and they are more likely, than its challengers, to be purchased. The frequent discounts and offers that Converse comes up with play a substantial role in attracting the clients. The vouchers attained on in-store acquisitions work to persuade the clients to shop at Converse again.
With several factory stores in the important cities of the country, Converse has made the purchase of Chucks quite convenient because of its customers. Comforters are also lured by the option of website buys and the availability of the sneaker in ubiquitous vendors like Wal-Mart and Payless.
The association that Converse has made out of the superstars from all walks of life, from activities to music to press, has helped it to make a good impression on brains of the targeted young generation. Also, since Converse is a recognized brand, customers tend to buy Chucks since influencers or the guide groups possess the sneaker.
Conclusion
Converse is a recognized brand in the fashion shoes or boots industry, which positions its Sneaker, Chucks All Legend, as a 'sneaker of self-expression'. The product is reasonably costed and targets the younger generation of students and young professionals. Due to above mentioned factors, Chucks are between the most preferred shoes in the mark market. Converse promotes Chucks through a number of distribution channels and star endorsements. Overall with its marketing activities, we can say that Chucks is a successful brand.
The only area in which Chucks are lagging is the athletic boots segment which is a huge market yet to be explored.
