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Nike: No Fundamental Change in Sports Marketing Strategy Publication info: PR Newswire ; New York [New York]01 Oct 1998: 1.

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BEAVERTON, Ore., Oct. 1 /PRNewswire/ -- Nike, Inc. (NYSE: NKE) today again reiterated that, unlike some of its

competitors, it is not shifting its sports marketing strategy in any fundamental way.

It also released a transcript of vice president of global brand management Andy Mooney's comments to Wall

Street analysts in New York City on September 24:

"We are totally committed to continue to invest 10 percent of global revenues in demand creation. So that gives us

about a $900 million global demand creation budget, which is roughly split between $500 million for sports

marketing and $400 million for communication. Our sports marketing money is less flexible than communications

money but not that much less flexible. Aside from Michael's {Jordan} contract most of these contracts with

athletes or teams don't go much longer than three years. So we have a chance to completely re-look at every

athlete, every team and every event we're involved with over the next three years. We believe that it is possible to

move as much as $100 million from sports marketing to communication over the next three-year period to

continue to excite the market.

"I want to make a couple of things, having said that, perfectly clear. We are totally committed to sports marketing

athletes and teams endorsements as a fundamental pillar of success for this business and this industry. We

believe we can make this transition without necessarily giving up much, if any, athletes or teams because, as Tom

{Thomas E. Clarke, Nike president and chief operating officer} alluded to, it's really a two-horse race. There are only

two companies that have any money to bet on any of these properties. And some of the competition will be fierce

for some of the jewel properties. But I think as was evidenced by the passage from the NCAA to NBA drafts this

year, just as a fundamental of supply and demand, the renewal costs of these deals we believe will be significantly

lower than they currently are."

Nike began working with athletes since its founding in 1972, starting with the great American middle distance

runner, Steve Prefontaine. SOURCE Nike, Inc.

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Publication title: PR Newswire; New York

Pages: 1

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Number of pages: 0

Publication year: 1998

Publication date: Oct 1, 1998

Dateline: Oregon

Publisher: PR Newswire Association LLC

Place of publication: New York

Country of publication: United States, New York

Publication subject: Business And Economics

Source type: Wire Feeds

Language of publication: English

Document type: WIRE FEED

ProQuest document ID: 449920732

Document URL: https://search.proquest.com/docview/449920732?accountid=8289

Copyright: Copyright PR Newswire - NY Oct 1, 1998

Last updated: 2018-02-25

Database: ProQuest Central

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  • Nike: No Fundamental Change in Sports Marketing Strategy