nike

             Nike back to Wieden for fewer, bigger ads
             Goodby is out of the picture as Nike consolidates $350 mil account at longtime agency
             by Alice Z. Cuneo and Wayne Friedman
             Nike is making a major shift in its advertising strategy, in an effort to regain market share while cutting costs. The athletic footwear and apparel maker "will be doing fewer campaigns and putting more weight behind them," said one executive familiar with the strategy.
             In general, Nike either has produced numerous individual ads or a group of spots and print executions for basketball, golf or leisure apparel to run in limited, targeted rotations.
             The new approach comes as Nike consolidated its account at longtime agency Wieden & Kennedy, Portland, Ore., dropping Goodby, Silverstein & Partners, San Francisco, and ending a two-year, emotionally charged rivalry between two of the nation's most creative agencies.
             In an analysts meeting earlier this year, Nike officials said ad spending in fiscal year 2000 would hit $350 million. For the first six months of '99, Nike spent $126 million.
             The shifts correspond to Nike's attempt to cut costs for the company overall, according to analysts.
             Nike's core athletic footwear business continues to face a depressed marketplace, as well as challenges stemming from a continuing drop in market share. According to NPD Group, from January through September, Nike's market share dropped to 31.4% from 34.9% a year ago. Through September, the overall athletic footwear market has slipped 1%, or $133 million, to $9.9 billion. Actual unit sales of footwear are down 5%.
             After a poor fiscal 1999 that ended in May, Nike rebounded somewhat with net income up 22% or $200.2 million in the quarter ended Aug. 31, compared with $163.8 million for the same period a year ago. Revenues remained the same, at $2.5 billion. Nike also had a tough fiscal year in 1998.
             In the running category, Nike's U.S. retail dollar sales increased 3% ...

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