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).