SBD/24/Sponsorships Advertising Marketing

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  • KELLOGG'S GETS TITLE SPONSORSHIP; MLS UNVEILS NEW '98 ADS

              Kellogg USA will become title sponsor of Soccer In The
         Streets, a GA-based, non-profit dedicated to bringing soccer
         to the inner city.  The Kellogg's Soccer In The Street
         program will be conducted in 13 cities (Kellogg's).
              MLS: MLS's new ad campaign from Dallas-based Dieste &
         Partners, "Lessons in Passion," was examined by Jerry
         Langdon in USA TODAY.  He called the spots "pretty good. 
         Particularly impressive is the 'Dancing' promo, set to Mambo
         music, with players making great faking moves and dribbling
         past defenders."  There will be eight spots, half of which
         have been completed.  The other half will be done by April
         (USA TODAY, 3/23)....BRANDWEEK's Terry Lefton reports that
         MLS is holding All-Star balloting at the 2,200 Kmart stores
         nationwide in a promo that also gets the league's licensed
         apparel "into mass retail for the first time."  All-Star
         voting runs May 3-June 28 with ballots available in Kmart's
         Sports Center licensed apparel areas.  Lefton adds that
         Kmart "gets the exclusive on MLS licensed apparel at mass
         merch for the rest of the year, while MLS gains access to
         one of the most desirable retail venues" (BRANDWEEK, 3/23).
    
    

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  • MARKETPLACE ROUND-UP

              BRANDWEEK NOTES: Terry Lefton reports that Service
         Merchandise will be the presenting sponsor for MLB's Home
         Run Derby during the All-Star Break, airing July 6 on ESPN. 
         Service Merchandise's "foray into sports" is being run by
         new marketing exec Chuck Kremers, who led True Value into
         MLB, NASCAR and NFL sponsorships....Dorothy Hamill, Nancy
         Kerrigan and Nicole Bobek will appear in a print campaign
         for Aetna/U.S. Healthcare breaking this spring.  It will
         promote heart health and warn about the high incidence of
         heart problems among women....While Bell Atlantic recently
         inked a sponsorship pact with the Atlantic 10 Conference,
         the company could not come to terms on a proposal to rename
         it the Bell Atlantic 10.  The deal "would have cost two to
         three times the mid-six-figure deal" that was consummated,
         and the A-10 would have "become the first conference to sell
         its name"....Hershey has signed a two-year sponsorship deal
         with Strike Ten that gets it sponsorship of the National
         Family Bowling Tournament, access to the association's 6,000
         bowling centers and promotional rights (BRANDWEEK, 3/23).  
              NOTES: The WNBA's inaugural season "won gold" in the
         sports and entertainment category at the American Marketing
         Association's Edison Awards (AD AGE, 3/23 issue)....UT men's
         basketball coach Rick Majerus signed an exclusive rep
         agreement with IL-based Intersport Management for contract
         negotiations, endorsements and appearances (Intersport).
         ...In N.Y., Richard Wilner notes a source who said that
         Cablevision, which bought electronics chain Nobody Beats the
         Wiz, will renovate the stores and decorate the interiors
         with "classic" MSG sports photos (N.Y. POST, 3/24).
         
    

    Print | Tags: Cablevision, ESPN, Madison Square Garden, MLB, NASCAR, NFL, Walt Disney, WNBA
  • NIKE TO REDUCE MARKETING BUDGET AND RE-EVALUATE STRATEGIES

              Nike "will slash its global marketing budget" by $100M
         for the FY starting June 1, "and over the next six months
         will re-evaluate its strategies," according to Jeff Jensen
         of AD AGE.  Nike's '97 marketing budget was an estimated
         $891M.  Nike Chair Phil Knight "holds marketing partly to
         blame for the company's recent woes" and will put its new "I
         can" campaign from Wieden & Kennedy up for "reassessment." 
         Knight: "Our problem has not been too much marketing, but
         too much ineffective marketing" (AD AGE, 3/23 issue). 
              FOOT SOLDIERS: In N.Y., Jennifer Steinhauer examines
         whether a slowdown of Nike sales will impact Woolworth's
         Foot Locker stores.  Analysts estimate that Woolworth
         controls about 16% of the U.S. athletic footwear market, and
         about 40% of the market for athletic shoes over $40.  At
         Foot Locker stores, investors estimate that footwear makes
         up roughly 75% of the merchandise, with Nike representing
         30-50% of that category (N.Y. TIMES, 3/24).
    
    

    Print | Tags: Foot Locker/Venator Group, Nike, Wieden Kennedy
  • NIKE'S WOES CONTINUE TO BE THE FOCUS OF MEDIA ANALYSIS

              Nike's earnings reductions and recent layoffs are
         examined in this week's news magazines.  In TIME, Bill 
         Saporito writes under the header, "Can Nike Get Unstuck?" 
         Saporito: "Nike is a multibillion-dollar monster finding its
         size awkward."  Nike Chair Phil Knight's "challenge is to
         re-create the essence of the outfit he first operated out of
         the trunk of his car."  Nike "is reassessing everything,
         from the way it sells to retailers to the number of times
         the famous swoosh appears on products and in advertising. 
         It will try to act smaller by developing categories such as
         golf, soccer, and women's as separate business units." 
         Knight: "Basically, our culture, and our style, is to be a
         rebel, and we sort of enjoy doing that.  Now that we've
         reached a certain size, there's a fine line between being a
         rebel and being a bully, and yeah, we have to walk that
         line."  Saporito writes that despite "the pounding" it has
         taken, "Nike is still the force in athletics" (TIME, 3/30).
              REORGANIZATION: Nike will undergo "a holistic
         reorganization as it struggles with the very size of the
         company and what it stands for."  Knight: "What we are today
         might by O.K. for a $3 billion company.  It's not O.K. at
         9."  In reviewing its corporate image, Nike execs "reached
         an interesting conclusion: too many swooshes."  Nike VP Mark
         Parker: "There has been a little bit of an internal backlash
         about just the number of swooshes that are out there." 
         Saporito adds that Nike will "try to be more accessible" to
         consumers by continuing to develop subbrands, such as a golf
         division built around Tiger Woods and another line, Nike
         Classic Golf, that will target the country-club set. 
         Saporito concludes that Knight "has written this year off,"
         but by '99 he "expects to have new product, a new management
         structure and better press" (TIME, 3/30 issue).       
              LOWERED COOL QUOTIENT? NEWSWEEK's Jolie Solomon writes
         that more than its negative press, "Nike's bigger problem is
         a 1990s marketing conundrum: can you be big and cool?"  When 
         Teenage Research Unlimited did its latest survey, 40% of
         kids named Nike as one of the "coolest" brands, down from
         52% six months ago.  But Solomon adds that Nike's "ace in
         the hole is Knight himself," who she describes as
         "charismatic and down to earth" (NEWSWEEK, 3/30 issue).  In
         a sidebar, NEWSWEEK's Joshua Hammer reviews Michael Moore's
         new documentary, "The Big One."  Knight "is the only CEO
         with the guts to go on camera, but he pays the price: he
         sheepishly admits he's never visited his company's Third
         World factories" (NEWSWEEK, 3/30 issue).
              ATHLETE'S FOOT? In U.S. NEWS & WORLD REPORT, William
         Holstein reports that Knight "remains deeply involved with
         Nike's athletes, which is one reason it will be hard for the
         company to cut back on its spending for sports events and
         sponsorships."  But recently departed execs say that
         Knight's "preoccupation with his athletes, at the expense of
         shareholders and employees, is a serious problem."  Former
         Nike CFO Robert Falcone said he urged Knight "to cut back on
         promotion and marketing costs to help offset declining
         sales.  Instead, Knight decided to shuffle management to
         appease investors."  Falcone: "All they had to do was not
         sign one soccer contract, and they could have saved hundreds
         of jobs" (U.S. NEWS & WORLD REPORT, 3/30 issue).
    
    

    Print | Tags: Nike
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