Assignment 2

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Royal Melbourne Institute of Technology *

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BSBAD506

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Marketing

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Feb 20, 2024

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Fundamentals of Marketing – MKT10007 Assessment 2: Analytical Report Semester 2, 2022 Student Number: 104241104 Student Name: Demi Hondrakis 1

Table of Contents 1. Introduction ………………………………………………………………. 2 2. Summary of Brand ………………………………………………………..2 & 3 3. Micro & Macro Environmental Factors ………………………………. 3 4. A Persona Target Market Segment …………………………………….. 4 5. How the brand is Triggering Need Recognition ……………………… 4 6. Conclusion ………………………………………………………………… 5 7. References …………………………………………………………………. 5 Introduction Marketing intelligence entails gathering and analysing data in order to make further decisions within a business. By analysing a self-chosen brand, it provides a methodical approach on understanding what marketing intelligence is. In this report, it consists of, summarising the brand, the incorporation of how micro and macro environmental factors have an effect on the brand and how the brand will trigger need recognition through a persona who is an ideal target consumer. A summary of the brand The Converse brand have a wide selection of high top or low top style which has been a staple of footwear for decades. The brand started in 1908 by company Marquis Mils of Malden Massachusetts which was specifically made to be a sport shoe for basketball. 15 years later, the shoe was renamed as “All-Star” as a marketing technique to gain more athletes attention to purchase them. In 2003, Nike bought Converse for $305 million and extended their variety of products including pants, backpacks and tees. Celebrities such as Snoop Dog, Kristen Stewart and Rihanna followed to purchase Converse products. 3 Level Analysis of the Product: o Core Product The core advantage that Converse offers to it’s consumer’s is providing comfortability when playing sports such as basketball or skateboarding, whilst making is fashionable necessary. It is flexible and porous allowing the foot to move and breathe through the production of gripping rubber outer soles. The Converse shoe is a must have footwear due to their convenience and persistence. o Actual Product Converse created four product lines which are its classic well-known style with canvas material allowing it to be fashionable necessary. One star which was originally produced for an appropriate basketball court material, Chuck Tailor All Star which has been recognised for the cultural authenticity with the use of materials, classic colours and quality rubber sole. And lastly, Jack Purcell which was originally designed to provide more support on the badminton court. 2

o Augmented Product Converse provides free delivery, credit warranty, stress free returns and Gift Cards as their augmented products increased in their benefits. Marketing Mix The 4P’s Marketing Mix analysis provides relevant information about the Converse brand. The dynamic and classic design is a signature status of Converse targeting a large market size especially middle class age groups. As Converse is predominately owned by Nike, it regulates the price of affordable products. The prestige associated with the product makes the prices increase slightly without impacting its sales. The most expensive shoe, Converse Pro Leather, for males has been marked as $170 whereas for women, the Chuck Taylor X Missioni, has been marked as $200. Converse has world widely spread the market in more than 160 countries. In America, well-known retailers such as Target are selling Converse shoes. The United States, the United Kingdom and China are the main distributers for Converse. Converse’s brand name has been built through celebrity endorsements such as Chuck H. Taylor (a legendary basketball player) and marketing campaigns such as their launch on global connectivity to embrace the brand’s legacy over the years. Micro and Macro environmental factors Microenvironment The intermediary is a key microelement in the microenvironment which contains all factors to the company that affects the ability to serve to its consumers. As stated above, Converse being owned by Nike, has become an increasingly sustainable company as they are working towards creating a greener image by using advanced technology to expand in better materials and manufacturing. An example of Converse assisting in the environment is through their recycling scheme they joined in 2011. It consists of showing their consumers how Converse is trying to minimise wastage. The long-term competition in footwear market is evolving which is a key micro environment factor directly impacting Converse. Besides Converse, Vans and Reebok have a major effect on the revenue of Converse because of their similarity they have in their target market. As these brands have a supply of more executive services to meet the demands and needs for consumers, they steadily push brand positioning through a variety of digital marketing campaigns in order to boost Converse to catch sales. Macroenvironment Political factors such as laws or government regulations governing companies is a macroenvironmental factor that can impact a business. The law “discrimination when recruiting” is a law the government has set for business’ to follow which may complicate the progress of an organisation. This law has created Converse’s recruitment process more complicated as time and money will be spent on preferrable candidates that fits the law criteria. Meaning, Converse has 2,000 employees and 90% are in a particular demographic. Considering that there is a particular demographic, Converse could potentially receive a penalty (a fine) because a legal law (The Sex Discrimination Act 1984) that business’ must employ individuals from different cultural backgrounds, ages, sex and religion to prevent discrimination. 3

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A persona ideal target market Name: Gwen Smith Age and gender: Female, 19 years of age Residence: Melbourne Education: First year university student at Swinburne Occupation: Part-time job earning $250 weekly Life Cycle Stage: Young adult Major life goals: To influence fashion The consumer’s motivations for using products in this category are: for a reasonable price whilst making it fashionable necessary Their frustrations with the products currently on offer are: choosing a wrong size in footwear or purchasing a product with poor quality Their criteria for choice amongst competing brands are: t hrough social media consumption such as Instagram or Facebook This 19 year old fictional female is in her first year as a Swinburne university student. She has a desire to pursue her goal by building her personality through experience and knowledge. Gwen has a passion for balancing fashionable shoes with an affordable price. She decided to purchase a pair of Converse Chuck Tailor All Star sneakers for $55.00, which she considers it to be a reasonable price due to the income she is receiving. As it could be difficult to choose a brand in the footwear market, Gwen’s life goal is to form a personal impression for young adults to be confident and match with her dynamic energy. How the brand is triggering need recognition The first stage of the Consumer Decision Making Process is the need recognition. The slogan Converse created, “Wear with everything” triggers the need of allowing a fashionable item that can be matched with any style. This brand has created many marketing campaigns such as “Shoes keep it clean, Sneakers get dirty” is a quote that connects with all demographics innovating that shoes need to be kept clean. “Which shoes are you?” by Perfect Fools is also another marketing campaign on how to approach the customers by its own value. Converse’s slogan and mission statement emphasizes the opportunity to express individuals through the Converse shoe. 4

Conclusion Through this analysis of the brand Converse, the background information and micro and macro environmental factors can be perceived what the ideal target market segment is and how the brand triggers the consumer’s need recognition. This report requires a detailed outline on the marketing intelligence Converse demands and to assist in the understanding of which marketing strategies are used. References admin (n.d.). All Star Style: The Iconic History of Converse Shoes – DC Fashion Week . [online] Available at: https://dcfashionweek.org/all-star-style-the-iconic-history-of-converse-shoes/. www.studymode.com. (n.d.). Converse Chucks - 515 Words | Studymode . [online] Available at: https://www.studymode.com/essays/Converse-Chucks-872345.html [Accessed 24 Sep. 2022]. AVADA Commerce Blog. (2020). How Converse’s Marketing Strategy Makes Its One of The Most Successful Sneaker Brands . [online] Available at: https://blog.avada.io/resources/converse- marketing.html . claireedwards16 (2013). Claire Edwards – Macro – Environment Impacts on Converse . [online] consshoes13. Available at: https://consshoes13.wordpress.com/2013/11/04/claire-edwards-macro- environment-impacts-on-converse/ [Accessed 24 Sep. 2022]. migl14 (2013). Macro environment – Political/Legal factors . [online] consshoes13. Available at: https://consshoes13.wordpress.com/2013/10/13/micro-environment-politicallegal-factors/ [Accessed 24 Sep. 2022]. 5

Assignment 2

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