Converse Brand Strategy Essay Example

declines well above 10% or even 20%.

Apparel is one of the worst hit categories —wearing a pair of shoes for longer before replacing it and cutting out impulse purchases is a common response to economic fears – Mintel 05/09 COMPETITION Competition that's getting stiffer all the time. Although clothing sales are down overall, sneakers are one of the few products that are still selling. The global sneaker market is worth almost $30 billion. And that's attracting new players like Under Armor to a field already crowded with heavyweights like Nike, Adidas and PUMA. New competition Simple – “The important thing is we're committed to making our product 100% sustainable.

Finding materials and processes that make our products sustainable is a method we call Green Toe. It isn't a magic formula, or a cure. It is a compass that, we hope, points to a bright green future” Radii – “Radii Footwear’s goal is to exceed the expectations of the current consumer climate by offering quality products, creative concepts, comfort and value. Radii Footwear’s creative team thrives off the principles of functionality and fashion forward ingenuity. From futuristic designs and materials, to classic styling and detailing, each shoe exudes confidence for the ambitious forward- thinkers of the world. Supra – “Large and in charge, Supra sneakers command attention and can only be rocked by those who have the confidence to match their stylishly exaggerated design. ” CONVERSE REPUTATION Decades of history have linked Converse and Music, it has long been recognised as a shoe for individualists and creative’s. In recent years the growth of the sneaker market has democratised the brand a step to far and it now

worn by yummy mummies, city bankers, skaters students alike. "Converse and its Chuck Taylor (model shoe) are all about originality, creativity and self-expression.

How can we get the wearers, the fans of those shoes, to express themselves in that way, showing their own creativity? '' – Greig Stern, Converse President “I love Converse. They are worn by young adults who are into an indie/alternative music scene. I don’t think that image has ever really changed” “Love Converse. Used to have underground punk music association, now more indie and mainstream. Probably ‘cos everyone hates that Nike owns them their not as alternative. Still go street cred. though" Historic Celebrity Fans 1970s Ramones 1990s Kurt Cobain and Tom Morello of Rage Against The Machine Current Celebrity Fans 000s Johnny Knoxville of Jackasse, Dr Who, Dr House, Seth Cohen-The OC Uh Oh “(Converse) can be cool but emos hijacked them so their not anymore. They used to be really old school but they jacked up the price. They are defiantly not a sport brand just a normal casual shoe” – 21 year old student and band member “now everyone wears them. You see yummy mummies and skater kids in them. You even see folks dad wearing them” “the age at which they are acceptable has been rising" “Usually when older people adopt something all the kids stop. But Converse are a bit of an anomaly, all the young folk are still wearing them”

Current solution? Conversemusic. co. uk and the recent advertising campaigns (see below) are an attempt to try and reclaim it’s identity as a brand for free thinkers. “Conversemusic. co. uk is a thank you to all Converse

fans, it will be an ongoing effort to give something back to those who make Converse what it is today” THREATS Inconspicuous consumption Plimsols take over as kids rush for unbranded apparel [pic] “Right now, conspicuous consumption is out of fashion. The logo-driven excess of the past decade is being looked upon – at least in the Western world – with distaste. Authenticity is all the rage” - Warc 2009 pic] In this climate, does Converse have an opportunity to win back share by highlighting its quality and authenticity credentials? “'Treasuring' is in vogue. There is a renewed appreciation of the handmade. Craft is respected” – Warc 2009 Loosing brand roots Under Nike’s guidance there is certain pressure to extend the brand with innovation and step into high st “fashionista” territory. A step too far away from the brands cool, no bull shit walk around shoe could alienate loyal customers and permanently damage their relationship. OPPORTUNITIES Toddler market

The shift towards toddler sneakers has accelerated as teen demand for basketball shoes - once the cash cows of the industry - has waned and discounters have taken a growing share of the adult sneaker market. The toddler segment is more profitable because more sneakers can be sold at full price, unlike those sold in more competitive markets aimed at adults and teens Weight lifting market Converse shoes have seen a resurgence in popularity in weightlifting, especially in the CrossFit community where the shoes are revered for their flat, hard soles that do not easily compress under load New markets

China's increasing wealth and rising middle class have led the Chinese market for retail goods to reach over $232

billion in 2006, with growth expected to be at least 15% annually. Nike's sales in China increased by 50% on a currency-neutral basis in 2008, particularly because of higher footwear sales Furthermore, the rise of other emerging markets, particularly Turkey, Russia, and Brazil have become considerable growth opportunities for Nike. Sales in Turkey and Russia increased 25% during 2008, and grew an additional 30% in Q1 2009 which the company attributes to increases in company-owned retail stores.

Also, Brazilian sales increased 30% during Q1 2009 New technology Nike already makes a line of shoes, called Nike+, with built-in sensors that can communicate with a runner’s iPod to track calorie consumption and so forth. Can converse adopt this technology to for use with its music focused consumer vs. Analogue snobbery At a time when everything is becoming digital and run through the internet there is a revitalized interest and aspiration becoming attached to original analogue versions-from vinyl records or analogue cameras to books and writing letters.

With a reputation as the original and unchanged classic sneaker, Converse has an authentic voice to be heard on this trend. Can it’s strong links to the music industry support a wave of analogue production? Customisation Despite various difficulties Converse still have strong tie to individualism and self expression in youth culture. Customisation was adopted early by consumers and still prolific today. - The customization of Chuck Taylors is highly popular with the rock scene, especially with teenage girls. Many draw or write on the shoes, use mismatched laces or wear odd shoes (often two differently colored Chuck Taylors. These practices are fairly common among wearers over the past three decades. The

trend of wearing the low-rise shoes (in white) and writing on the rubberized part can be traced back to as early as 1972, peaking with junior high school girls between 1973 and 1975. "Over time, we turned ourselves into a canvas, especially in apparel and footwear," " it was an exercise in creating your own canvas, with a unique sense of style. ” Warc 2009 ADVERTISING During an economic downturn it is even harder to reach consumers.

So instead of investing in national ad buys that are costly and anonymous, sneaker companies are trying more small-scale efforts. “hyper-local” marketing tries to connect with consumers where they shop and get them to help spread the message for companies. “Nevermind the United States. It's not even East Coast/West Coast. I think brands are going to have to think city by city, you know, in terms of how to effectively communicate to consumers and hope that there's a spillover effect into other markets. “Antonio Bertone-The Global Marketing Officer for PUMA CONVERSE 010 – Glamour magazine Converse has partnered with Conde Nast's Glamour magazine to produce eight different September editions of the magazine for different regions in the UK. Each edition, out on Thursday 12 August, contains a dedicated 16-page editorial section tailored to Birmingham, Bristol, Manchester, Northern Ireland, Scotland, Wales, Newscastle and London. 2010 – All Summer – Anomaly Anomaly's ongoing "Three Artists. One Song" effort has culminated into this three-minute music video called "All Summer," staring Kid Cudi, Best Coast and Rostam of Vampire Weekend 010 - - Butler, Shine, Stern & Partners Under the assumption that it doesn’t own the brand, the consumers do (Not Nike!! )

BSSP has called for converse fans to send in 24s videos that can be about anything inspired by converse. "It's not going to be advertising, it's going to be more like an artistic grant, and our media, whether it's print, outdoor or television, will be the media or the canvas for that statement”. - Greig Stern "Our feeling is that what is unique about the Converse brand is it accentuates what is unique about the individual who chooses to wear it. ' – Maddox, Converse brand manager The brand then adds 6second tag on to form the campaign. 100s of videos were submitted over July and August, of which the best were selected for TV and the microsite. So far, there has been a payoff: Since the launch of the campaign in August, traffic to www. converse. com, a commercial site, has jumped 66 percent compared with the previous 12-month period, and nearly 400,000 visitors went to www. conversegallery. com in the first three weeks of the campaign to view the spots, said Stern. Online shoe orders doubled in the first month, 009 – Domaination – Anomaly Converse’s Domaination campaign creatively combines data from Google Zeitgeist with AdWords to create an interactive game that lives through the web. The campaign won a Gold Effie in 2009. Anomoly, the agency behind the campaign, took a fresh look at Google as a window onto Converse’s audience. They started by identifying searches that the Converse audience were performing but that no brands were buying keywords on. They then created a series of paid search campaigns leading to various microsites, connecting with the audience in playful, informal ways.

The idea

was to “create an entirely new use for Google Search, dubbed Domaination; a platform to dominate search marketing and destroy the perception of the microsite. ” 2007 – Me We – Anomaly 30s TV spot sees the word me transform into we along to the sounds of Bob Marley- One Love “We wanted to be disruptive but “positively disrupt. ” So jar people a bit from their regularly scheduled program and make them think a little. Leave them with a little residue. A little homework to do. ”- Mike Byrne, Partner and Creative Director at Anomaly [pic][pic][pic][pic][pic][pic]