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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