FINAL PROJECT

(CONVERSE)

By:

                                    Andy Ng                                1801418345

                                    Fauzan Abi Wibowo              1801440843

Ivan                                        1801440540

                                    Mohammad Rayzal                1801437962

                                    Raditya Reza                          1801433876

                                    T. Al Brama Putra                  1801404491

                                    Wiley Oktovian                      1801408142

International Marketing

School of Business Management

Binus University

Jakarta

2015

Preface

Thank to Almighty God who has given His bless to us for finishing the Consumer Behaviour paper assignment entitled “Converse Brand Analysis”. We would like to say thank you to Mrs. Rita as the lecturer that always teaches us and give much knowledge about Consumer Behaviour. We wish to express our deep and sincere gratitude for those who have guided in completing this paper.

This Consumer Behaviour paper contains the analysis about brand of Converse. Description about their marketing mix , SWOT and STP analysis is provided in this paper. Those paper also can be used as the guidance for those who want to know more about Converse . Hopefully, this paper can help the readers to expand their knowledge about Converse brand.

Jakarta, 12^th January 2016

Chapter 1

Product Introduction

1.1 Background

Converse is one of the best footwear nowadays. People says Converse have a very good quality, simple design, and very comfortable to wear, that makes Converse become a top priority position in people hearts when they choosing footwear.

People usually complain how bad fabric based footwear is. Because it hard to wash, bad durability, and easily get stink. But Converse overcome this problem and even makes consumers love Converse more. This product make us curious how they achieve succeed with simple design and bad rated material, so we choose Converse as our research object. We wanted to analyze how Converse can dominate casual footwear with many disadvantages.

1.2 Problem

- What is Marketing Mix of Converse ?

- What is SWOT of Converse ?

- What is STP analysis of Converse ?

- What things to increase their STP ?

1.3 Objective

To know the Marketing Mix , SWOT and STP analysis of Converse . Also to give a recommendation to increase and develop their STP.

Chapter 2

Discussion

1.      Company Profile

Converse is an American shoe company with a production output that primarily consists of sportswear and lifestyle brandfootwear. The company has been in existence since 1908 and, in 2003, was purchased for $305 million (USD) as a subsidiary of Nike, Inc. Converse manufactures its products under the One Star, Chuck Taylor All Star, and Jack Purcell trade names. Converse shoes are distinguished by a number of features, including the company's star insignia.

Converse Inc. is the largest manufacturer of athletic footwear in the United States, producing approximately 8.4 million pairs of shoes domestically in 1998. It owns and operates a manufacturing facility in Lumberton, North Carolina, where it produces the majority of its athletic originals, and leases manufacturing plants in Mission, Texas and Reynosa, Mexico. The Converse All-Star basketball shoe was the first in the athletic footwear industry, and by the early 1990s, more than 500 million pairs, in more than 56 colors and styles, had been sold in more than 90 countries worldwide. In addition, the company has diversified into varied rubber products, sports apparel, and full lines of athletic shoes for tennis, cross-training, team sports, running, walking, and children's recreation.

The name for the Converse shoe originated in 1908 when Marquis M. Converse opened a rubber factory. The factory was in Malden, Massachusetts and was focused on creating rubber soled shoes for men, women and children. The Converse shoe factory didn't start making the well-known athletic shoe until 1915.

The Converse All Star shoes were created for basketball players in 1917. Charles "Chuck" Taylor, basketball player for the Akron Firestones, became the first player endorser in 1921 when he added his signature to the All Star symbol, which is a circular patch with a star.

Today Converse shoes continued to grow in popularity through the 1920's and 1930's as the nation's interest in basketball grew. In fact, the Converse Chuck Taylor All Star shoe became the standard issue basketball shoe for professional teams, colleges and high school teams across the country. Today Converse shoes are not only popular among athletes, but also among American trendsetters.

2.      Vision and Mission

·         Vision

The Converse Shoe Company provides footwear for many diverse groups. These include bands, wedding parties, clowns, athletes and even prison inmates. Regardless of the customer, the vision statement of the company is "Wear a shoe that makes a statement".

·         Mission

Deliver personal service to our customers knowing that soon we will become friends. Our hope is that we provide the same shoes that our owner's father wore for cross country in 1965, and his grandfather wore to play stickball in the streets of Philadelphia in the 30’s

3.      Marketing Mix

·         Product

Their main product is the selling of sneakers for both athletics and casual wear.  Then, secondary products that they offer are clothing such as t-shirts, sweat shirts and tops, socks and backpacks.

·         Place

Selling all products worldwide through retail stores , mall and through website (online).

·         Price

Rp500.000 – Rp. 2.000.000 for the sneakers men and women

Products	Tops	T-Shirts	Sweatshirts	Hats	Shoe Laces	Socks	Bags
Adults	Rp300k-600k	Rp150k-250k	Rp350k-500k	Rp150k	Rp35k	Rp80k	Rp200k–400k
Kids	Rp200k-550k	Rp120k-250k	Rp300k-450k	Rp100k	Rp35k	Rp80k	Rp200k–400k

·         Promotion

T.V. commercials, promotions through different websites on internet, ads in popular magazines for adults and kids such as Cosmopolitan, bill boards etc.

4.     SWOT

·         Strength

1.      Mid premium segment apparels, shoes and other accessories for the youth with good adveritisng

2.      Range captures international designs and trends and also special editions are launched for special occasions.

3.      The shoes and the skate boards come in customizable designs

4.      The company has a long history since 1908 and a huge loyal customer base.

5.      The company has partnered with a NGO called RED, working for AIDS relief in Africa.

6.      Famous sports celebrities are brand ambassadors

7.      The lean organization system which converse follows makes in manufacture at least cost  and minimum wastage.

·         Weaknesess

1.      Tough competition from existing brands means limited market share

2.      Converse buys and sells in different currencies and hence can be at a loss sometimes.

·         Opportunity

1.      Very well known brand in across the world

2.      More product development opportunities exist for Converse as most of the products are fashion sensitive

3.      Converse can also diversify into shirts, bags as these are high value items.

·         Threats

1.      The industry is very price and fashion sensitive and hence converse too faces the threat.

2.      Local market also possess risk

3.      Fake imitation products is a threat to the brand

5.      Segmentation , Targetting and Positioning Analysis

·         Segmentation :            - Demography =          > Men and Women

> 15-23 years old

> College Student and Worker

> They who have budget Rp300.000 – Rp500.000

·         Targetting

Their target is consumer who look for quality, simple design and also comfort for doing their daily activity like school  or just doing usual activities. Converse more dominant loved by teenagers who have hobby like skateboarding or music.

·         Positioning

Converse known by consumer is because their product comfortability and presenting the teenager spirit from their simple and colorful design. Affordable price for mid-class teenagers and adult is also one of reasons they have loyal consumer.

6.      Design

 
Converse Chuck Taylor

Converse Jack Purcell

Converse Hoodie

Converse T-Shirt

 Converse All-Stars Kids

Chapter 3

Conclusion

Converse can get better product sell rates if they reduce the price of the sneaker from Rp500.000 – Rp2.000.000 to Rp300.000 – Rp500.000 to get more attention on Lower Mid-class consumers and Mid-class consumers. We think with price of Rp300.000 – Rp500.000 can cover their profit loss judging Converse’s popularity and quality. But Converse doesn’t need to reduce their price on other products like their casual wear, bags, or socks because it’s already on affordable price.