Converse Marketing Case Study

Question 1: What are core, actual and augmented benefits of Converse Chucks?

There are several core and actual benefit for customer from buying Converse Chucks. Firstly, it is classic shoes that fit any look. A customer who wears a Converse Chuck shoes may perceive a look of self-expression, free- spirit and creativity. In addition, it is comfortable, made by quality material.

Especially, it is a well know brand and it is distributed by a limited edition and exclusive offers, then, customers who wear a Converse Chucks shoe may receive much more value than wearing a normal pair of shoes.

In Converse Chucks stores, customers have the right to decorate the shoes themselves, then, they may feel that they put their style on their shoes and they are unique. This causes a great experience for customers.

Finally, a wide range of choice of Converse Chucks also gives customers a better choice for their best shoes. Furthermore, customers will be guaranteed the quality and the of the product quality if it is purchased at a high end retailer.

Question 2: When Converse outsourced production of its shoes to India, it entered into a licensing arrangement. What are the benefits and risks of that action?. Do you think it has helped or hurt the company? The brand?

Benefit and risk:

There are some primary benefits of licensing arrangement.

Firstly, it can reduce the cost of producing as the labors and materials at India are far less than USA.

Secondly, this is a good way to enter the foreign market. It can deeply reach the India market. Then, it can boost sales at India.

Thirdly,

There are some primary risks of licensing arrangement.

Firstly, the label “Made in the USA” is removed. Then, customer may perceive the quality of the product in another way. This may result in the perception of poor product quality.

Secondly, there is a risk of quality control of the company. While joining a licensing arrangement, the company cannot totally control the production...