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Tuesday 6 March 2012

Converse

Converse
Entrepreneur : Marquis Mills Converse
Picture of Products
Famous Product: Converse Rubber Shoes

Brief description of the products/services/business concepts
Converse is a leading global designer, manufacturer and marketer of high quality athletic footwear for men, women and children. Best known for "Chuck Taylor All Star" line. The company is also a global licensor of sports apparel, accessories and selected footwear.

A profile of the Entrepreneur and the business
Marquis Mills Converse was the founder of the Converse Rubber Shoe Company, he was born on October 23, 1861 in Lyme, New Hampshire, United States.
In his late 30s, Marquis Mills Converse, who was previously a respected manager at a footwear manufacturing firm, opened the Converse Rubber Shoe Company (unrelated to the Boston Rubber Shoe Company founded by fourth cousin Elisha Converse) in Malden, Massachusetts in February 1908.

A brief introduction of how the business started
Same year (in 1908), Marquis M. Converse fell down a flight of steps in Malden, Massachusetts, injuring both him and his pet donkey, Seabiscuit. The incident gave him the idea of rubber soled shoes, to prevent one from slipping. By 1909, the company was up and running, providing winterized rubber-soled footwear for men, women, and children.

How the business gained success

  • Unique design with fashion strategy and high performance

Combining fashion with functionality; reach out to a greater number of people with full line for casual, sports, etc…

  • Best sales manner.

On-line customers can create their own special pair in easy steps through their DIY sneaker site.

  • Converse Celebrity Sponsors:

Dwyane Wade, Elton Brand, Kyle Korver, Maurice Evans, Orien Greene, Michael Sweetney.

The ups & downs of the entrepreneur & his/her business
The following timeline shows the developments of Converse:
  • 1908: The company is founded as Converse Rubber Co.
  • 1917: Converse introduces the All Star, one of the world's first basketball shoes.
  • 1929: Converse Rubber Co. falls into bankruptcy.
  • 1972: Converse is purchased by the Eltra Corporation and acquires the footwear division of B.F. Goodrich Co.
  • 1979: Allied Corporation purchases Converse.
  • 1982: Allied Corporation sells Converse to a group of its senior managers.
  • 1983: Converse stock becomes available on the NASDAQ national market.
  • 1984: The company signs agreements with Moon-Star Chemical Corp., Mizuno Corp., and Zett Corp. to handle the manufacture, distribution, and sale of Converse footwear in Japan.
  • 1985: The company is named the official shoe of the National Basketball Association.
  • 1986: Converse is acquired by Interco Incorporated.
  • 1994: Converse is spun off from Interco in November.
  • 1999: Converse introduces the He:01 shoe.
  • 2005: Sales in 2005 hit $400 million – more than double the revenue from 4 years prior.
Business Philosophy & Business Strategies used
  • Marketing strategy
The Company's marketing strategy is centered on the Converse All Star brand, which is positioned as the American performance brand with authentic sports heritage. The company believes that there are significant opportunities to build the brand, which commands high consumer awareness generated by reason of its 91-year history. The company's consumer research has become an integral part of its product development, advertising campaigns and in-store point of purchase materials.
  • Fashion strategy
  1. Age range – appealing retro-fashion for people in their teens and in their 30s.
  2. Extensive lines of clothing for men and woman – varying in price range and target markets.
  3. Planning more variations for the Chucks line – creating endless possibilities.
  • Performance Strategy
  1. Product sales increase; benefits similar to big name brands.
  2. Performance features and technology such as air bag heel (similar to Nike Airwalk) attracts athletic customers.
  3. Potential to attract younger generation
  4. Affiliated with performance (basketball), helping to attain reputation.
Achievements attained in terms of Market Share, Sales Turnover, Number of Outlets, Recognition, Adoption & Acceptance of Product, etc
Over 800 million pairs of Converse All-Stars have been sold worldwide since they were fist made in 1966. That's roughly 20 pairs for every South African and an average of 4.5 million pairs sold every year globally. Now, the company’s products are distributed in over 90 countries.
How the product / company got its name
"Converse" is the last name of his founder Marquis Mills Converse.

Unique features about the product /services/business concept that makes it outstanding
  • Unique design
These fine folk will paint whatever the customer want onto a pair of Converse All Stars, as well as onto bags or denim jackets - and these aren't cheesy paintings either. With each pair of shoes taking 3 to 4 hours to paint, they look fantastic. The artwork is all done by hand, without the use of airbrushes or stencils, and the paint will not chip or fade. Though there have a gallery of images that the customer can choose from, it seems that customer imagination is the only limit when it comes to the artwork what they will paint onto a pair of chucks.
  • Good on-line sells manner
Converse just launched their DIY sneaker site — so the on-line customers can create their own special pair in ten easy steps. They get to decide on everything from size, sneaker style, colors, patterns, racing stripes, stitching — right down to the laces. Design them as classic or razy-crazy as customers like. The customers just cost 60 bucks, and in three to four weeks, they can get the unique shoes.

Key Factors contributing to the success of the business
  1. Good Idea
  2. Fashion with unique design and high performance
  3. Good sales manner.
  4. New design for their products every year.
  5. Clear objectives: college age people, especially those in sports.
Etc
The company’s products are distributed in over 90 countries to stores which include fashion, specialty athletic, sporting goods, department and shoe stores. Since the birth of Chucks, Converse has produced tennis, cleats and running shoes as well as a full line of basketball footwear. Converse also had a line of skateboard shoes, as it entered the skate market. Today Converse enjoys worldwide recognition and is highly regarded as a manufacturer of superior athletic footwear. Converse is strongly involved in street-fashion and music markets as it associates its heritage and originality with innovative ideas.

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