BMX Rider Enlists Sponsors For Video Series Serena Draws Praise For Wimbledon Outfit Nike's North American Profits Take Dip Nike's Battle For CEO An Internal Affair Nike Drops Suit Against Boris Berian Nike Forced To Recall Dresses Made For Wimbledon Nike Will Maintain Sharapova Partnership Ben Simmons Signs With Nike, Considered Adidas Battle Between Nike, Under Armour Heats Up Dellavedova To Get Signature Shoe
SBD/24/Sponsorships Advertising Marketing
NIKE TO REDUCE MARKETING BUDGET AND RE-EVALUATE STRATEGIES
Published March 24, 1998
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).