The "fate" of Reebok's new $115 Allen Iverson shoe "has
grown even more dependent upon alternative marketing
thrusts," as the NBA lockout threatens the season, according
to Greg Johnson of the L.A. TIMES. Reebok is placing
product literature in "urban gathering spots in big cities"
such as L.A., S.F., San Diego and Las Vegas. Marketers also
"hope to get influential consumers talking about the shoe by
outfitting hip-hop artists and radio disc jockeys with the
new shoes." Reebok will hand out key chains, water bottles
and Iverson T-shirts at concerts and radio station
giveaways, and "might also sponsor a national hip-hop dance
contest -- and polish its image by outfitting top
contestants with new models that are stylish and practical."
Johnson noted that Reebok's new Iverson ads show him playing
basketball "in a gritty city park rather than a stylish NBA
arena." The "street-oriented theme" is also used in adidas'
campaign for the new Kobe Bryant shoe, which uses no NBA
footage and "focuses more on Bryant than on his NBA
connection" (Greg Johnson, L.A. TIMES, 10/22).
REEBOK RESULTS: Reebok reported that "third-quarter
profits were down more than" 60% from the same period last
year. The results, which fell short of expectations, also
showed a drop in net income to $28.2M, or $.50 a share, from
$74M, or $1.26 a share in the third-quarter of '97. First
Call Corp. analysts predicted a result of $.52 a share.
Reebok's revenue also declined 13% to $878.3M from over $1B
in '97. Reebok Chair Paul Fireman said that Reebok "is in
the process of upgrading its products and exiting several
unprofitable licensing contracts" (BOSTON GLOBE, 10/23).
