Nike, Others Are No-Shoes in Atlanta; New Balance to Women: Go Exercise

Brandweek,  Feb 21, 2000  by Terry Lefton

Tags: marketing, Nike Inc., women

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A sparsely attended Super Show saw no presence from top sneaker brands Nike, Adidas and Reebok, and an industry already in the doldrums from proliferation of product, brands, retail space and the threat of a glut of liquidated shoes from the demise of Just For Feet, was further exacerbated when Nike told analysts about disappointing earnings projections. Not reported was the Beaverton behemoth's promise of a mysterious new technology platform to be launched at the end of the year. Meanwhile, retailers were screaming for exclusives, with Foot Action ramping up a marketing push next month branding itself the "One Spot" for teen styles. That begs the question: if everyone has an exclusive shoe, doesn't that defeat the purpose of the exercise in differentiation? "It's more of a Band-Aid than a long-term remedy but if that's needed as a temporary fix, OK, we'll turn that volume up," said Reebok CEO Paul Fireman.

New Balance, at No.4 in market share and the biggest sneaker brand at the Atlanta show, will debut a TV campaign next month with five spots targeting women from Messner, Vetere, McNamee Schmetterer Euro RSCG, N.Y. The long standing "Achieve New Balance" tag has been slightly altered so it now reads "Connect With Yourself, Achieve New Balance."

"We're just reminding our [30+] target audience that even though everything is a click away it's OK to take time for yourself with some exercise," said Paul Heffernan, vp-global marketing. Ads show a woman ignoring a computer pleading with her to check her e-mail in favor of going for a run; a woman on a treadmill ignoring an incoming fax; a woman in a gym putting a ringing cell phone in her locker; and another on an exercise bike watching Woody Woodpecker, as those around her watch weather, news and financial updates.

Reebok, meanwhile, will veer off into basketball this summer, using new endorser Steve Francis of the Houston Rockets to relaunch its Blacktop outdoor basketball shoe/apparel line, which will begin as an exclusive to Venator. Blacktop will get a $5 million push, including TV, print and radio ads, wild postings and signage on inner-city backboards.

Fireman taking the reins since the December exit of Reebok brand president/CEO Carl Yankowsi to Palm Computing, showcased some artful print ads for Reebok's classic line and a brand campaign leveraging its DMX cushioning technology. However, a sizable portion of the industry remains skeptical. "They've got some decent product now," said Keith Daly, svp/general merchandising manager at the 571-store Foot Action chain, "but they still don't have a solid image." Elsewhere, Reebok--no longer on NFL uniforms, but still on field as a footwear brand-- has signed Tennessee Titans' defensive end Jevon Kearse to an endorsement deal. Marketing plans are incomplete.

The licensed product portion of the show, held on the same Georgia Dome field where the Super Bowl had been decided a few weeks back, was also morgue-like.

One interesting flip-flop: the NFL, for the first time out of the sanctity of the press box and on the floor; in its place was the debut of Nike Team Sports. The NFL booth, overwhelmingly stocked with hard goods, led one NTS exec to inquire if the NFL was still in the licensed apparel business. One could have asked the same question of Nike until the formation of NTS last year.

While they still have a long way to go to reach the heights of the early- to mid-'90s, baseball cards are looking at another double-digit increase this year. There's enough momentum that MLB has inked Kmart and Fox to a national promotion. MLB will distribute 500,000 trading card binders to kids in April with eight of a special 32-card Opening Day Y2K set from all four MLB licensees. The rest of the deck will be sold exclusively at Kmart, which supports via displays at all U.S. stores. Also in the binder: a card touting a watch-and-win for the FX national game of the week on April 20 and 27; grand prize is a trip to the World Series.

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