Management and Operations (PDF)

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT AND OPERATIONS
Table of Contents
Introduction:................................................................................................................................. 3
Summary of the Case Along with the Assumptions:....................................................................3
Answer 1:..................................................................................................................................... 4
Answer 2...................................................................................................................................... 5
Question 3................................................................................................................................... 7
Answer 4.................................................................................................................................... 10
Answer 5.................................................................................................................................... 12
Conclusion................................................................................................................................. 14
References:............................................................................................................................... 15

2MANAGEMENT AND OPERATIONS
Introduction:
The report aims at providing an insight into management and operations in the context of
the future growth of retro brand of Converse commonly known as Chuck Taylor All Star
Sneakers. In the year 2017, Converse through its intensive development and research
produced basketball shoes and recruited the basketball player Chuck Taylor for not only
providing useful insights in improving designs but also ensure its promotion (Foreman 2014).
Although the company had huge margins of profit created through constant demand for shoes
at a price tag of $35, it filed for bankruptcy in the year 2001. The reasons included the dual
positioning of the Converse as it targeted both the athletes and the artists thereby offering not
only stylish but also performance-oriented shoes. This led to the failure of Converse in achieving
market penetration across its actual target segment that is the creative community. The second
reason for failure has been the changing of hands during 1990s when it experienced major
mismanagement. Nike saw immense potential in the company, took over it in the year 2003,
and ensured its revival through unique marketing initiatives.
Summary of the Case Along with the Assumptions:
The case represents one of the most iconic brands developed by Converse in the year
1917 commonly known as Chuck Taylor All Star Sneakers. Converse had been the market
leader in the sport shoes but experienced a major setback in the market share during the 1970s
due to competition faced from the new players like Nike and Adidas. The Chuck Taylor sneaker
had been one of the unique brands but consumers used it for the purpose of casual wear
despite it being an athletic shoe. However, Nike that took over the company in the year 2003
identified the brand potential of Converse (Wayne 2013). Nike used distinctive marketing
initiatives such as engagement of the consumers and fans over the social media and music
sponsorships for reviving the retro brand put forward by Converse. However, the consumers did
not accept the addition of a new variant of Converse sneakers. This resulted in the stumbling of
the sales growth in the last two quarters of the 2015. However, there was no clear picture about
whether the fluctuations resulted due to the poor performance of the newly designed Chuck II
brand (Abrams 2014). Hence, Nike promoted continuous innovation in Converse until the end
of 2016 and even launched variations in the Chuck II brands known as the Thermo boots. The
assumptions include the possible growth strategies of the Chuck Taylor All Star sneakers when

3MANAGEMENT AND OPERATIONS
the competition in the sneaker market grew and the consumers did not respond positively to the
innovations.
Answer 1:
Chuck Taylor All Star sneakers manufactured by Converse in the year 1917 have been
one of the market leaders in the athletic shoe market. Although marketed as the athletic brand,
the consumers even wore sneakers for the casual purposes. It was the attractive colors and the
designs that helped in capturing the global markets. In spite of everything, the company was
filed for bankruptcy in the year 2001(money.cnn.com 2013). The reason lay in the dual
positioning and the change of the hands. Nike acquired the company in 2003 and successfully
re launched Converse. This reflected in the sales figures that increased to $2 billion thereby
contributing to close to 6.5 percent of the total sales of Nike. Besides, when Nike was also able
to report a compound annual growth rate (CAGR) of about 5.3 percent, Converse reported a
growth rate that was double the growth of Nike at about 12.7 percent(news.nike.com 2017).
Nike wanted to broaden the market for the Converse with the re launch of a different
design of sneakers, known as Chuck Taylor II, as one of the retro brand (Cochrane 2015). The
brand however faced a set back as due to in acceptability of the consumers. It was designed to
take care of the uncomfortable shoe designs of Chuck Taylor All Star shoes. The new variety of
the sneakers did not find acceptance amongst the consumers because not only its innovation
was too late but also it was also costlier. The issue lay in whether Converse will be able to
regain its market position in the face of immense competition and in-acceptability of its newer
designs.
Answer 2
The analysis of the environment of the case study based on the SWOT matrix is as
follows:
Strength:
The case revolves around one of the most iconic retro brands of sneakers, Chuck Taylor
All Star, manufactured by Converse. Although launched as an athletic shoe these sneakers
remained preferred by the consumers’ even as casual wear. The sneakers were available in
varied color and trendy features. The sneakers were weightless, had vulcanized sole and were
available at an affordable price range (converse.com 2018). The Chuck Taylor All Star