LeBron Banner Could Go Back Up On Building Nike-Under Armour Rivalry Growing EA Drops Ray Rice From Madden Game Numerous Retailers Pulling Ray Rice Gear Bowling Green Signs Apparel Deal With Nike Nike Likely Will Lose Money On New KD Deal Nike Retains Durant With Deal Worth Over $265M Jordan, Federer U.S. Open Chat Boosts Sales Jordan Talks Federer Shoe Collaboration UA Battles Nike Supremacy With Durant Deal
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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).