Nike is "shifting its media strategy to add more
entertainment/prime time programming, while slowly moving
away from the dogmatic devotion it has held" for sports
programming, according to Terry Lefton of BRANDWEEK.
Network sources tell Lefton that Nike execs have "recently
warned them of impending cuts in sports spending up to" 30%
or more, and that Nike is making the change "in order to
reach" the 16-and-under market that "now finds the brand
less meaningful." Nike Ad Dir Rob DeFlorio said the company
is "still skewed strongly to sports in our media, but the
price of sports programming is rising, while the delivery of
key audiences isn't. We have to go where our audience is,
and generally you'll see us more in lots of time periods
versus just sports." Lefton adds that sneaker retailers and
analysts have said that the word "fashion" is "no longer
anathema" at Nike. DeFlorio: "We've learned to say the F-
word [fashion] around here, and it's not a curse word
anymore." Lefton: "While the change by no means suggests
that Nike is considering abandoning sports programming or
performance shoes or attire, it is culturally as significant
as though Coke were to shift to a 'good for you' strategy.
Any brand tweaking by Nike in the post-Michael Jordan era
bears scrutiny" (BRANDWEEK, 5/24).
MORE FROM BEAVERTON: Lefton also reports that in an
effort to "restate its absolute dominance of the basketball
category," Nike will launch a new basketball campaign from
OR-based Wieden & Kennedy on Friday that "contrasts power
players" like Spurs F Tim Duncan with "finesse players" like
Michael Jordan. The "Force/Flight" campaign includes two
spots and features Rockets F Charles Barkley, Bucks F Robert
Traylor, Grizzlies F Shareef Abdur-Rahim, T'Wolves F Kevin
Garnett and Comets G Cynthia Cooper. Another "shoot,
tentatively set for mid-June," will likely include Kings G
Jason Williams. The campaign touts both the Flightposite
and the Air Tuned Force (BRANDWEEK, 5/24 issue).
A HOLDS-CLAW ON THE DETAILS: Lefton cites "reliable
sources" who put Nike's average annual payout to Mystics
rookie G Chamique Holdsclaw in their five-year deal at
$500,000, in addition to a $50,000 signing bonus and a
royalty guarantee. Nike gets exclusivity in shoes, apparel,
basketballs, video games and sunglasses, as well as right of
first refusal when the deal expires. Among aspects of the
deal: Holdsclaw gets at least one national print campaign
and two national TV ads and a "pledge from Nike" for an
apparel line and signature shoe (BRANDWEEK, 5/24 issue).