No Man's Land

Feb 24, 2009

Novak a Falcon On Court

During the Australian Open, Novak Djokovic unveiled his new signature ‘Falcon' range for adidas He also wore the gear whilst playing tennis on an aerial court in Melbourne's iconic State Theatre.

Positioned appropriately on centre stage, the natural performer played tennis on an airborne court against a flying opponent, and when finished was greeted by a real life Falcon to help him launch his new range.

"I have played tennis on many courts around the world, but never on one that was airborne," says Novak Djokovic. "It was a fun and exciting way to help launch my own signature range for adidas here in Melbourne, and having a Falcon on hand to help me was an extra bonus."

Part of the new CC Genius Footwear and Edge apparel lines, the Falcon range highlights Novak Djokovic's unique style of play and his dynamic personality. The defending champion will wear the new products for the first time at the Australian Open, which starts on January 18th.

"The CC Genius is just the shoe I've been looking for," says Novak Djokovic. "It's light but has great grip and allows me full movement around the court without compromising on stability and I'm thrilled to lend my name to the first CC Genius shoe. I chose the Falcon as my signature line as I believe my style of play is just like a falcon hunting. I live for great matchups against strong opponents and this is now reflected in my apparel and footwear on court."

The Novak Djokovic Falcon footwear range has been created in five different colorways for the four Grand Slams and the year ending Masters Series Cup. The Serbian will also have two extra apparel Edge colorways for his night matches for the Grand Slams in Melbourne and New York.

The white Edge tennis polo incorporates the Falcon logo on the left hand shoulder while the olive green stripes colour is carried through to the matching shorts. For night matches Novak will wear an all black Falcon combination featuring silver stripes to match his specially designed silver CC Genius shoe with Falcon logo. The Edge apparel incorporates key adidas technologies ForMotionTM and ClimaCool® to ensure the best possible fit, feel and comfort during those epic on-court battles that the Australian Open is known for.

The CC Genius Falcon shoe has been designed with Novak's unique playing style and foot movements in mind, with a new SPEEDCUT® technology used in lateral strips on the upper to give added forefoot support. The sole provides excellent grip on hard courts but also enough give and ankle support to facilitate Novak's breathtaking slides. Cushioning is key to making this a truly comfortable shoe with ClimaCool® aeration technology which allows Novak's feet to remain at an optimum performance temperature despite the sometimes sweltering heat in Melbourne.

The Novak Djokovic Falcon range of apparel and footwear is available in retail worldwide. Recommended retail price for the CC Genius is $130, while the Edge apparel Polo is $50 and Bermuda is $50.

Additional information on adidas Tennis

  • adidas is the proud sponsor of some of the biggest names in men's and women's tennis including Novak Djokovic, French Open Champion Ana Ivanovic, Paris Masters Series winner Jo-Wilfried Tsonga, Davis Cup winner Fernando Verdasco, French Open runner-up Dinara Safina, Sania Mirza, Bob and Mike Bryan, Caroline Wozniacki and many more.
  • adidas offers four types of tennis shoes, the Barricade V, CC Genius, CC Feather clay court and CC Feather grass court.
  • adidas is the market leader in tennis footwear and apparel offering Barricade, Feather, CC Genius, Edge, Competition and adilibria ranges.
  • adidas Tennis introduces its new racket offering for 2009 allowing players worldwide to follow in the footsteps of tennis legends Ilie Nastase and Ivan Lendl. Three racket ranges have been engineered for the 2009 season catering for a range of players, from tour and club players to recreational. Each racket is named after our benchmark Tennis shoes, Barricade, Response and Feather, and share similar characteristics.
  • adidas provides a unique support program which its tennis players can take advantage of. The adidas Player Development Program counts Sven Groeneveld and Gil Reyes among its staff and provides training tips and hitting partners to nutritional advice and off-court mentoring.

Labels: ,

Feb 16, 2009

adidas Makes a Racquet

Needing a new racquet for your bag this Spring? Well look further than the normal Prince, Wilson, Head, and Babolats of the tennis world. Making a return to the racquet party is footwear and apparel giant, adidas, who re-enters the market since the days of Ivan Lendl.

adidas Tennis introduces its new racket offering for 2009 allowing players worldwide to follow in the footsteps of tennis legends Ilie Nastase and Ivan Lendl.

As the leading tennis footwear brand in the world, adidas is excited to re-introduce performance rackets creating the ultimate package of tennis products for players worldwide.

"Building on our footwear and apparel success adidas tennis feels the market is right for the return to racket production," says Simon Cartwright, Vice President of Global Tennis. "We can now provide tennis players with everything they need to take part in one of the most popular sports in the world. Consumers can be assured that our new rackets will match the high levels of product quality so long associated with the adidas brand."

Three racket ranges have been engineered for the 2009 season catering for a range of players, from tour and club players to recreational. Each racket is named after our benchmark Tennis shoes, Barricade, Response and Feather, and share similar characteristics.


Barricade Response

Four Barricade models have been created; The Barricade Tour is designed for the "Tournament Player." It is the heaviest at 330g and the stiffest of the new adidas rackets, ideal for fast swinging players who can generate their own power and look for additional control.

The Barricade Tour Light is 30g lighter, suiting good juniors, but it offers the same control with every swing. Both the Barricade Tour and Tour light come with and 18/20 string pattern to give excellent control and a crisp feel.

The third racket in this range is the Barricade itself; a lighter and less stiff version of the Tour racket with a 16/19 string pattern to ensure a forgiving and playable racket for competition players. The Barricade Junior, meanwhile, satisfies the needs of young budding tennis stars.

All rackets in the Barricade family feature the adidas POWER STRUCTURE TECHNOLOGY (PST). Three structures at 3 o'clock and 9 o'clock act like the claws on the Barricade shoe to improve torsional stability. This technology transfers to adidas rackets by adding weight at the same points, putting pop into your shots and increasing the sweetspot.

The Response racket has the perfect combination of power and control for most club players. The higher frame height gives greater power while the stiffness and string pattern bring control.

The Feather is the lightest of the adidas Tennis Racket range just like the Feather shoe. However the Feather actually has the thickest frame offering a little extra power for the recreational or older club player seeking an easy to handle racket.

The Barricade range of rackets will retail for $185.00, and the Feather racket for $165.00, while the Response comes in at $145.00

adidas rackets, which are made by leading tennis manufacturer Keentech, will be sold through adidas own retail as well as tennis specialist stores worldwide. The rackets are available in the United States beginning February 1, 2009.

Labels:

Jan 31, 2009

Under Armor Earnings Fall Short

From BizJournals.com/baltimore...

Under Armour Inc.’s fourth-quarter profit sank 51 percent and the sportswear maker is staying mum on its 2009 outlook as it tangles with a slumping retail environment.

Earnings dropped to $8.3 million, or 17 cents per share, in the quarter ended Dec. 31. That’s compared with a profit of $16.9 million, or 35 cents per share, during the same period a year prior.

Sales during the fourth-quarter grew 2.5 percent to $179.3 million.

The earnings were on par with Wall Street’s forecast. Analysts polled by Thomson Reuters expected earnings of 17 cents per share on revenue of $179.7 million.

Baltimore-based Under Armour (NYSE: UA) said sales were impacted by a slowdown in its U.S. wholesale business and increased cancellations and returns. The company was also impacted by unfavorable foreign currencies. On the flip side, Under Armour said its footwear business more than doubled in 2008 to $84.8 million in sales.

CEO Kevin A. Plank said Thursday the company remains optimistic on its long-term growth opportunities, but for now is hunkering down to weather what looks to be a tough 2009.

“There’s been a lot of discussion where the consumer is heading,” Plank said on a conference call with analysts Thursday. “We are very aware of the challenges facing all brands in this environment.”

Under Armour began to see sales slump in the last 35 to 40 days of the year leading up to the holiday season, Chief Operating Officer Wayne Marino said in an interview Thursday morning.

"Under Armour has probably never had this type of challenge before," Marino said. "But we've got strong brand equity and very, very strong price integrity in this market."

Under Armour’s success in “2010 and beyond will be significantly impacted by the decisions we make in 2009,” Plank added.

The biggest test for the 13-year-old company this year will be its entry into the nearly $5 billion U.S. running shoe market on Jan. 31. The line of six shoes are priced between $85 and $120. Plank told analysts the returns on Under Armour’s running shoe foray won’t be immediately obvious.

“You’re not going to be able to define the success of our running footwear by Monday,” Plank said. It’s an “11 to 12 month launch that will be defined at the end of 2009.”

Aside from the launch, Plank said Under Armour is “cautiously optimistic about 2009” and is looking at the year with the “appropriate degree of conservatism.”

The company will not open any new retail stores during the year.

Executives would not give a 2009 outlook “because of the volatile environment” when pressed by analysts Thursday.

Meanwhile, Under Armour also announced it secured a new three-year $180 million credit facility with PNC Bank (NYSE: PNC). The facility replaces an existing $100 million credit line the company had in place.

For 2008, Under Armour had net revenue of $725.2 million, up nearly 20 percent from last year. The company’s profit dropped 28 percent to $38.3 million. Inventory climbed in the year by $16 million to $182.2 million.

Inventory at the end of the year included $15 million in running footwear. The company’s inventory growth would have been flat without the running shoes, said Chief Financial Officer Brad Dickerson.

Labels:

Under Armor Not Cutting Workforce

From BizJournals.com/baltimore...

In a week when more than 100,000 people across a broad swath of industries have lost their jobs, Under Armour Inc. has no intention to cut its work force.

The sluggish economy, however, will play a role in the Baltimore sportswear company’s future hiring plans. That was the word Thursday from two top executives after fast-growing Under Armour released its fourth-quarter results.

“We know we have to bring in new people,” said Brad Dickerson, Under Armour’s chief financial officer, in an interview. “It’s much more focused [now] on where we bring those people in.”

While Under Armour executives say they will spend 2009 evaluating its core operations, the company still has plans to outline additional product lines in future years. Those launches are what will fuel the company to continue hiring where needed, Dickerson said.

A soccer clean, also known as a "boot", and line of basketball sneakers are likely to be the next launches.

Under Armour employs more than 2,000 people globally, including 1,100 in Maryland.

Unlike many of the country’s biggest consumer-focused brands that are bleeding red ink and shedding jobs, Under Armour still remains profitable.

The company reported Thursday its fourth-quarter profit dipped by 51 percent to $8.3 million.

“[W]e’ve got strong brand equity and very, very strong price integrity in this market,” said COO Wayne Marino in an interview.

Just this week, retail giants Starbucks (NASDAQ: SBUX), Home Depot (NYSE: HD) and Target (NYSE: TGT) unveiled massive restructuring plans.

Home Depot plans to cut 7,000 jobs, Starbucks is closing 300 stores and slashing 6,700 positions and Target is eliminating 600 jobs at its Minneapolis headquarters.

Last week, discount retail chain Filene’s Basement announced it would close three Greater Baltimore locations.

Labels:

Under Armor in Super Bowl

From MdDailyRecord.com...



When Pittsburgh and Arizona square off Sunday in Super Bowl XLIII, it will be the finale to weeks of anticipation and media coverage, and one Baltimore company is looking to again cash in on the buzz.

After paying big bucks for a Super Bowl television ad last year to announce its cross-trainer shoe — then seeing its share price fall partly in response — Under Armour is taking a grassroots approach this year in Tampa to marketing its new running shoe on the sporting world’s biggest stage.

The athletic apparel company’s senior vice president for brand, Steve Battista, said a television ad this year just didn’t fit into the strategy for the shoe’s launch Saturday.

“Remember last year, no one had ever even seen what Under Armour [non-cleated] footwear looked like,” he wrote in an e-mail. “The Super Bowl is great for that.”

Instead, Under Armour sent a team of salespeople and athletes to market the new product at the NFL Experience — the Super Bowl’s fanfest at Raymond James Stadium — through activities and athlete demonstrations. Visitors can test out the new shoe in a 40-yard dash and in training sessions, or browse Under Armour’s retail section which will include the new shoes on Saturday.

The Ravens’ Troy Smith, the Redskins’ Santana Moss and the 49ers’ Vernon Davis (a University of Maryland alum) will be among the handful of athletes at in-store promotions and autograph signings on launch day in Tampa. Moss, along with the Bears’ Devin Hester and the Giants’ Brandon Jacobs, will promote the product on local and national media outlets, and Under Armour will give away 10 Super Bowl tickets at Tampa-area stores.

Elsewhere, specialty partner Fleet Feet will host an event in Chicago beginning at 11 p.m. Friday — one hour before the launch day — where customers can test shoes on a late-night run and opt to buy the shoes after midnight. Under Armour is also running an event at Hibbett Sporting Goods in Atlanta with Braves outfielder Jeff Francoeur, whom the company sponsors, as a continuation of a promotion there during the football season.

No launch events were planned for the Baltimore area because local marketing staff and athletes will be in Tampa to focus on the Super Bowl this weekend, according to Under Armour’s communications staff. Future events at the specialty stores in Bethesda and Annapolis are possible.



The guerilla approach is a stark contrast to the dramatic, 60-second spot the company bought for last year’s Super Bowl, but far less controversial. Although last year’s game, in which the New York Giants upset the New England Patriots, did end up being the most-watched NFL championship in history, the Fox Network’s base rates were a then-record $2.7 million for a 30-second ad. When Under Armour announced it was springing for a spot worth $5.4 million — its first Super Bowl ad purchase — analysts questioned the decision, prompting a 33 percent dip in the company’s stock last January.

Robert J. Thompson, director of the Bleier Center for Television and Popular Culture at Syracuse University, said Under Armour’s timing seems off. Running a high-profile ad during last year’s game, three months before the launch of the cross trainers, was a curious decision, he said. And an ad this year might have made more sense.

“In some ways, on the surface I don’t quite get it,” Thompson said. “Last year, they have a February ad even though it’s not launched until May; this year they don’t have an ad but the launch is the day before the Super Bowl. It seems like an ad would have been better this year in terms of a timing standpoint.”

Thompson noted that Super Bowl ads tend to get buyers more bang for their buck because of the attention they draw from media and replays of the spots on other television networks and the Internet. The ads have historically been a tactic for announcing a new product.

“There’s no place at any other time on the calendar where you can get so many people talking about your ad and product,” he said. “Under Armour is an interesting case because you have athletic shoe companies like Nike that everybody knows, and Under Armour’s ad last year made some degree of sense — their move to the Super Bowl was like saying they wanted to become the Pepsi to Nike’s Coke.”

But Battista said that, unlike the cross trainers last year, the new running shoe has already been featured in national publications and benefited from word-of-mouth advertising.

“All of our retailers have shoes in store, plus, we’ve been seeding it to members of UA RUN club and our pro athletes for several months,” he said. “These individuals are the influencers … the product has been strategically placed in the marketplace, whereas with trainers it was all about the unveiling [at the Super Bowl].”

In addition, advertising is more expensive this year — NBC’s base rate is $3 million — and in a sinking economy with historic lows for consumer demand, retailers nationwide are scrutinizing their expenses more critically.

So Under Armour’s choice to take a grassroots tactic with the marketing opportunities the Super Bowl presents is likely motivated by finances and the response to last year’s method, those in the industry say. In its annual report released Thursday, the company said it would maintain a strong balance sheet this year by lowering capital expenditures while anticipating revenue growth, mostly due to its new product. Watching costs also means Under Armour will not open any new full-priced, specialty retail outlets this year.

Finding a less expensive way to still make a splash during the media event of the year — given the unstable economy — is a wise move, marketers say.

“The money they would have spent on a Super Bowl ad, they’re going to spend far less with this grassroots marketing approach and I think that’s a much more effective way to do things,” said John Maroon, president of Marriottsville-based Maroon PR. “A 30-second ad can be effective, but to be on the ground at the Super Bowl utilizing media, utilizing public relations, seems to be a better use of time.”

The grassroots approach — Under Armour’s bread and butter in its early days — does have its disadvantages, however. The effects of it are subtle and harder to track than conventional media advertising. But, said Maroon, the results are what matter.

“If somebody hears an Under Armour spokesman on a radio show and it hits a nerve, or somebody bumps into a [marketing] team out on the streets — that’s not stuff you can necessarily trace,” he said. “So it is more challenging, but who cares? At the end of the day, you look up and say we’re selling more shoes — and if you’re selling more shoes, you’re doing something right.”

According to its year-end report, Under Armour expects nearly all of its growth to come from its running shoe category, and analysts anticipate 1.5 million to 2 million pairs priced between $85 and $120 will be sold this year. But unlike its venture into the cross-trainer market, one dominated by Nike, Under Armour’s running shoe will face off against other stiff competitors like adidas, Reebok and New Balance.

In addition, analyst Jeffrey P. Klinefelter of Piper Jaffray points out in his note this week, the company is also up against “intense competition and strong brand loyalty” from specialty competitors like Brooks, Asics and Mizuno in the estimated $3.2 billion running-shoe market.

But while runners tend to be loyal to their shoe brand and defections to the new brand may be harder to achieve, it’s not impossible, said University of Maryland marketing professor Roland T. Rust, an avid runner.

“I’ll go out and buy 15 pairs of Brooks [shoes] at a time, so that makes it tougher for someone breaking into the market,” he said. “But on the other hand, you might get a runner right before one of those binges … if you can get people to start on your shoe once, then you may be able to turn them.”

On the plus side, Under Armour’s brand awareness, which is also strengthened by being face-to-face with some of the sports world’s most influential people in Tampa this week, is strong and its loyal following will give the new running shoe an automatic base of customers.

According to a recent survey by analysts at Stifel Nicolaus, 25 percent of the 300 respondents expressed interest in buying Under Armour products (up 4 percentage points from a year earlier) and 9 percent responded they planned to buy the new running shoe. While just over half of the respondents also expressed interest in buying a Nike product during the next three months, Under Armour’s slice of the market pie is encouraging.

“I think in a lot of cases the brand will sell itself,” said Thomas D. Shaw, who headed up the survey. “Lots of teens buy the product because it’s Under Armour; they already have the shirts, hats, the pants, and this completes the look. The question is can it sell itself to people who are [loyal to other brands].”

Battista said the fact that the running-shoe category is bigger and in far better shape than the cross-training category is an advantage to Under Armour.

“Unlike football, baseball and lacrosse cleats, this category is very important to the female consumer,” he said. “I really like our chances.”

Kevin Roche, a principal at the Seattle-based retail design firm Callison, said to be a player in the running-shoe market, Under Armour essentially needs to protect its house.

“People don’t buy brands, they join them,” Roche said. “In this economy, design concepts like creative excellence and commitment to differentiation appeal to the consumer on an emotional level and I think you can begin to protect your position [with that]. Clearly there will be less volume moving, but you can protect your margin to some degree.”

In the meantime, this weekend’s launch and the activities in Tampa will be about making waves where it counts.

“If you’re a big name in the sports industry and the sports world and have something to say, you’re down there this weekend,” said Maroon. “Although it’s tough because everyone else has also determined the Super Bowl is the place to be or to launch their product so you have to do something to stand out from the fray. But if you do that you’re golden.”

Labels:

Jan 23, 2009

Nike Reuse A Shoe Program

From BixbyBulletin.com...

Not long ago I posted a story at bixbybulletin.com that was so popular I put it in the Bixby Bulletin hardcopy edition; it had to do with selling used cooking oil which would be used to make fuel. I realized that recycling has come a long way since the days it meant turning milk cartons into bird feeders. “Look, Mommy, a milk carton tree!” Suggesting to someone 30 years ago you’d buy their old cooking oil would be as ridiculous as bottling water and selling it.

As a one-time Brownie Scout leader, I saw many peers “recycle” by turning would-be trash into re-named ugliness. Not a lot more practical than milk cartons was cutting a hole in a plastic bottle, turning it into a carrier with the handle at the top, for perhaps garden tools--not very pretty but at least not hanging in a tree. Some leaders made trash more endearing than ever by having tots paint, “I love you, Mommy,” or the name of a deity on it. It was an unimaginative leader who sent home garden tool carriers which still said such things as Cheer or Tide on the side. But they/we were pioneers.



In addition to aluminum can pyramids, some of you may remember putting soda bottles in the oven and stretching them into sculptures. Recycling then didn’t mean saving something from the trash; it meant bringing the trash into the house or hanging it in a tree.

Even as I tease, to this day I find it difficult to throw into the trash an oatmeal box, coffee can, or potato chip tin. I once got a call from my daughter’s second grade teacher asking if it were true I had enough egg cartons in my garage for the entire second grade. I said it indeed was, and she asked if I would bring them to the school right away for a project. My daughter still tells the tale proudly.

Today, however, everything I once put in the family “Rainy Day Box” for the kids to create with can be recycled if the right destination is found. Destinations are out there. It sometimes just takes some digging.

This week I hit the jackpot. I discovered that old tennis shoes can be recycled. The first source I read on-line took me back to the old bird-feeder days, suggesting that old tennis shoes be used as planters, dog chew toys, or even, yes, sculptures! Everyone needs an old tennis shoe sitting on the grand piano? Or, yes! Why not teach the dog to chew up the old tennis shoes so he’ll never learn the new ones are off limits?


Moving on, I found that unwearable sports shoes may be ground up to make athletic surfaces for kids.

Old tennis shoes, runners, sneakers, or gym shoes can be recycled. Send them to: Nike Recycling Center, c/o Reuse A Shoe, 26755 SW 95th Avenue, Wilsonville, OR 97070. Your old shoes--any brand I suppose--will be ground up to make surfaces for tracks, basketball courts and more for under served communities. They won’t end up in landfills. For more information, visit Nike Reuse-A-Shoe.

Now THAT’S recycling with a purpose! Share other great finds like this with me so I can share them with others.

Labels:

Welcome to the ATP

From TimesOnline.Co.Uk...

As short-lived honeymoons go, this must be one of the most troubling — even in the manic world of tennis politics. Adam Helfant had no sooner become executive chairman of the ATP World Tour than Ivan Ljubicic, the former world No 3 from Croatia and the newest member of the ATP board, has decided to resign.

Ljubicic has recently become a father for the first time and was finding that commitment and continuing his career very tricky. His loss to the decision-making process, when clarity and harmony is vital and when he was seen as a vital link between the players and the tournaments who own a half share in the ATP, is shocking. Ljubicic is also said to have been troubled by the behaviour of several of his fellow players at a meeting last weekend here, at which Helfant was formally introduced.

According to one official at the meeting and did not want to be named, the players “went ballistic” when the debate moved to the allocation of ranking points. The ATP has introduced a new system that now offers a far greater differential between the early and later rounds of tournaments as well as between the bigger and smaller events. It also includes, controversially, ranking points for playing in the Davis Cup.

If Helfant, a former Nike executive who spent the past few days here locked in various meetings, wanted to know what he had let himself in for, then Ljubicic’s resignation is the sharpest of introductions. The new board has barely had time to bed down and already a place has been

It is believed that a favoured candidate to replace the Croatian as a player representative is Benito Pérez-Barbadillo, who represents the media interests of Rafael Nadal, Novak Djokovic and Juan Martín del Potro, the No 1, No 3 and No 6 players in the world respectively.

Labels: ,

What is "G"?

From AdAge.com...

http://link.brightcove.com/services/link/bcpid1370868150/bctid6807847001

G?

What the F is G? The commercial that's been running for the past two weeks doesn't explicitly say. All it does is pan across black-and-white images of familiar and perhaps not so familiar (mainly) black and white athletes, while rapper Lil Wayne waxes poetic about everything the mysterious G putatively embodies:

"It's the emblem of a warrior. It's the swagger of an athlete, a champion and dynasty. It's gifted, golden, genuine and glorious. It is a lowercase god. It's the GOAT, the greatest of all time. It's the heart, hustle and soul of the game."

The greatest, naturally, is Muhammad Ali; the god, Bill Russell; the warriors, sprinters John Carlos and Tommie Smith, who scandalized the Mexico City games with fisted black-power salutes. JabbaWockeeZ, the masked, hip-hop dance crew is in there too, and why the hell not? Here at AdReview, a wedding-floor Electric Slide is a grueling test of endurance.

Anyway, as anyone with a fluid ounce of sense should have realized, G is Gatorade, as envisioned by its new agency, TBWA, Los Angeles. Apparently, though, plenty of viewers were stymied. On the YouTube comment board, poohbearg35 wrote, "yo this came on during the trojans n penn state game ... what are they actually tying to advertise." And diamonddevils10 said "so what is g?" And ptouhey deduced it was an ad -- for Nike.

Many other matters were discussed, including plenty of nakedly racist debate about the video's black-centricity, but more on that presently. The point is, it worked. People are talking about G. This is what a teaser campaign is meant to do. Therefore, for TBWA, so far, so good.

Likewise (if we can ourselves deduce based on limited data) the strategy -- which would seem to solidify what Gatorade began with its "Is it in you?" campaign but did not quite finish: to be sport in a bottle, the Nike of beverages. That's right, ptouhey wasn't far off.

"Is it in you?" was a reasonable facsimile of "Just do it." It was question as admonition, asking in particular whether you were serious enough as an athlete to do what is necessary for peak performance -- such as not cramping up when you are sweating your body salts away at maximum exertion.

We loved that campaign (from Element 79, Chicago), at least when the ads managed not to exaggerate this genuine, but modest, brand benefit. Here and there the brand overreached, implying that some electrolytes in your DayGlo-colored sugared swill offer a competitive edge -- like human growth hormone, in a variety of tangy flavors.

In any event, it would appear that the new agency is reaching still farther, not to "Be like Mike" but to be like Nike, associating G with all the emotion and beauty and glory of sport. There are worse things for a sport drink to be than synonymous with athleticism.

There are, of course, also many ways for this to go wrong. One, again, is to oversell the product efficacy. But here there's also a glimmer of something potentially more sinister: embracing "G" to mirror urban street parlance for substances far less benign than Gatorade. In a world where X stands for Ecstasy and H stands for heroin, you'd better take care how you sling around your Gs. This is no place for slumming or radical chic.

The racial skew of the opening ad makes the subject even more sensitive. The preponderance of African-American icons, and the reminder of 1968 black militancy, seemed to unsettle many of the YouTube audience. If PepsiCo hopes to speak to black America -- as opposed to exploiting it or pandering to it -- it had better know what the F it is doing.

Labels: ,

Under Armor Outlook

From Forbes.com...

Shares of athletic apparel maker Under Armor Inc. fell more than 15 percent Wednesday after the company forecast quarterly and full-year results far below analysts' expectations, saying wholesale orders are down and cancellations are up amid the dismal retail environment.

The company expects fourth-quarter earnings per share of 16 cents to 18 cents and revenue of $179 million to $180 million. The company had not issued previous guidance for the quarter. Analysts polled by Thomson Reuters have predicted much higher earnings of 49 cents a share on revenue of $209.7 million.

For fiscal 2008, the company now expects earnings per share of 76 cents to 78 cents and revenue of $725 million to $726 million, down from its prior estimate for sales of $750 million to $765 million.

Analysts polled by Thomson Reuters had expected annual earnings per share of $1.09 on sales of $755.5 million. In fiscal 2007, the company reported earnings of $1.05 per share on revenue of $606.6 million.

Shares tumbled $3.38 to $18.94 in morning trading and sent fellow apparel makers Nike Inc. and Dick's Sporting Goods Inc. down as well. Nike shares fell $2.81, or 6 percent, to $46.69 and Dick's lost 57 cents, or nearly 5 percent, to $11.72.

Citi analyst Kate McShane said that although she expects the 2009 first quarter to continue to be challenging for retailers and manufacturers, but thinks Under Armour could still see solid 2009 revenue growth based on its running footwear launch and expansion through existing and new retailers like Foot Locker.

In a note to clients, McShane said Under Armour's reduced guidance implies heavy order cancellations from sporting goods retailers, who are trying to keep inventories in-line with weakening consumer demand. While this obviously reflects on other apparel makers like Nike and Dick's Sporting Goods, McShane points out that Nike is "significantly more diversified" in terms of product, U.S. retail channels, and international exposure than Under Armour. She also said Dick's is more diversified by price point and better positioned as a retailer to control inventory.

Labels:

Jankovic Goes China

From Sports Business Journal...

The world’s top-ranked women’s tennis player, Jelena Jankovic, has reached an endorsement deal with sneaker and apparel company Anta, sources said, becoming the highest-profile global athlete to back one of China’s emerging athletic companies.

Reebok last week formally declined to re-sign Jankovic, and she quickly accepted a three-year offer guaranteed at $5.1 million from Anta, the sources said.

The deal positions Anta alongside companies like Li-Ning and Peak that are now competing in China with traditional powers Nike and Adidas and perhaps soon could do so globally, as well.

“This is a first. It is really groundbreaking,” said Terry Rhoads, co-founder of Zou Marketing, a China-based sports marketing firm. “This is a proud moment for all Chinese sportswear companies.”

Jankovic is represented by IMG tennis agent Gavin Forbes, who declined to comment.

The deal highlights a changing marketplace for tennis players’ core sneaker endorsement deals just as this year’s first Grand Slam, the Australian Open, gets under way.

James Blake last week left Nike for an unconventional pact with Fila, which has not had a top American male endorser since 1977. Neither of the Williams sisters, Venus and Serena, is under contract despite residing in the top 10 and holding the last two Grand Slam titles.

One of the reasons for the changes is the decline of tennis in America . The current economy is also a factor. Reebok, for example, declined to re-sign Jankovic the day before announcing 310 layoffs.

“After two successful years in partnership, Reebok has decided not to extend our relationship with JelenaJankovic,” the company said in a statement. “Jelena has always been a loyal ambassador for the brand and has continuously proven herself as a player of stature and maturity. We wish her all the very best in her future endeavors.”

Nike declined to re-sign Blake after having worked with him since he turned pro in 1998. He signed a four-year deal with Fila that pays him in the mid-six figures guaranteed, with potentially more based on the performance of a developing line of products.

That arrangement is unique. Most tennis contracts reward players for on-court performance. Fila will pay Blake based on the success of the products.

That product line is under development, but it will involve both the Fila logo and a yet-to-be-developed mark for Blake. His agent, Carlos Fleming of IMG, said the line will incorporate intellectual property from the player and the sneaker company, and will include tennis, lifestyle and fitness offerings.

Meanwhile, Serena Williams, whose contract with Nike expired last month, is still talking with the company. Nike has plowed substantial resources in tennis into Maria Sharapova, so where Williams fits into the mix is unclear.

Similarly, Venus Williams’ line, EleVen, now has no home with the demise of her retail partner, Steve & Barry’s. Fleming, who is also her agent, said he is in negotiations with potential partners.

Whether Jankovic’s agreement with Anta will bring forth a wave of new deals from China in tennis is unclear. Anta is largely a China-only company, though it does advertise courtside at Houston Rockets games. Rockets owner Les Alexander was an early investor in the company.

Li-Ning, which had a visible presence during the Beijing Olympics, was interested last year in signing Ana Ivanovic, currently the world’s No. 5 player, before she re-signed with Adidas.

To date, the significant non-Chinese endorsements for Chinese footwear companies have been in basketball. Peak counts Shane Battier and Jason Kidd as endorsers. Shaquille O’Neal has a China-only endorsement deal with Li-Ning.

The companies use the signings to gain credibility domestically, Rhoads said. He views the Anta/Jankovic signing in this light, with tennis, unlike in the United States, a growing sport in China.

Labels: , , ,

Jan 16, 2009

Helfant Takes the Helm

From ESPN.com...

It's a measure of new ATP chief Adam Helfant's management style that an accomplished man almost 30 years his senior would affectionately refer to him as "a teacher … the best leader I've ever had."

Helfant hired George Raveling -- who had a distinguished career as a college basketball coach at several schools, including the University of Iowa and USC -- as global director of basketball marketing at Nike in 2003. Raveling reported to Helfant, then vice president for global marketing for the sports apparel behemoth, for the next four years.

"He's at his absolute best when the heat is on and the issues become complex," Raveling, 71, said in a phone interview Monday.

"Adam is a really bright person who doesn't try to beat you over the head with his intellect. His style of criticism was to let you know, in a very subtle way, that there might be a better way to do things. No one ever questioned his judgment, and people still quote him around Nike."

The 44-year-old Helfant, a father of two, completed the requirements for an MIT engineering degree in 3½ years, went on to Harvard Law School and was briefly in private practice before working for the National Hockey League's legal department. He rose through the ranks at Nike quickly, mentored by global marketing guru Ian Todd, and left the company in late 2007 for undisclosed reasons.

Raveling, who still works in the same position at Nike, said he wept when Helfant called to tell him he was resigning. "There wasn't a dry eye in a room full of adults at his goodbye party," Raveling said.

The ATP World Tour formally announced Helfant's appointment, effective immediately, as executive chairman and president Monday. He succeeds former Disney executive Etienne de Villiers of South Africa and, like de Villiers, will work out of the organization's London office.

Helfant's cachet as a former top executive with one of the world's biggest and best-known brands certainly enhanced his appeal to the power brokers in one of the world's most multicultural sports organizations. But Helfant also has the very basic negotiating skills essential for the job, according to those who have sat across the table from him.

"He's a pleasure to deal with -- tough, but fair-minded," said NBA deputy commissioner Adam Silver, who said he and Helfant have taken in several U.S. Open matches together from the Nike suite at Arthur Ashe Stadium. "He understands the perspective of individual athletes and brands, but he also understands how individual athletes and brands can add value to a league or an organization like the ATP.

"Adam is used to managing people around the world, and he has extensive Olympic experience, negotiating with leagues and [sports] federations. This will be an opportunity for him to put his imprint on a sport."

Helfant, well aware of the top players' recent dissatisfaction with communication from the top, logged extensive flying time in December to visit with the ATP's top three players on their turf, Rafael Nadal, Roger Federer, and Novak Djokovic all won seats on the Player Council, an advisory body to the ATP board of directors, and Federer is the council president.

"Suffice to say those meetings went pretty well," said Tony Godsick, Federer's agent and IMG senior vice president. "Roger was very interested in finding someone who is going to take tennis to the next level.

"[Helfant's] biggest challenge -- and I think it's a great one -- is that there are so many great story lines out there in men's tennis right now," Godsick said. "Will Rafa stay No. 1? Will [Andy] Murray win his first Slam? Will Roger break the [Slam] record? So how do you harness this excitement and put it into a package that will sell to fans and sponsors in a very challenging economic environment? Adam knows how to maneuver globally, and he has always wanted to get a deal done that was fair to both parties."

Bob Kain, a former IMG executive who is vice chairman of the NFL's Cleveland Browns, agreed, saying Helfant was regarded as a "win-win" negotiator. "He wasn't trying to squeeze every last dollar out of you," Kain said. "He was intense and aggressive, but in the end, you'd still end up with a good relationship with him. He's filled with integrity."

One of the biggest stars in Nike's tennis stable is Maria Sharapova, and her agent, IMG's Max Eisenbud, has personally negotiated past deals with Helfant. "It's very obvious he's the smartest person in the room," Eisenbud said.

"He's dealt enough with tennis to understand it, and he likes the sport," Eisenbud said. "A lot of people who come from the outside don't understand how fragmented our sport is, that there's a role for the ITF and a role for the USTA and for [management agency] Octagon and IMG, and that's never going to change. One of the reasons [WTA chairman] Larry Scott does such a good job with the WTA is that he understands that and works with it.

"Some people wanted a total outsider for this job, and some wanted a total insider, and they got a nice hybrid with Adam."

Labels: ,

WTA / ATP Live Matches

From USAToday.com...

The ATP and WTA tours will offer fans the chance to see more professional tennis matches live on the Internet this year -- for a price. The men's and women's professional tours announced the creation of TennisTV.com on Tuesday, offering streaming video from 41 events, including the Masters series and the season-ending championships but excluding the four Grand Slam tournaments.

Not everyone around the world, however, will be able to purchase a pass to the site. The WTA is excluding users in all European countries and some others, while the ATP is not offering the live service in Brazil, according to the Web site.

The men's and women's finals of this year's Sony Ericsson Open in Key Biscayne, Fla., will also be blacked out in the United States.

Where it is available, subscribers will be charged $129.95 for a full access pass to the season. A men's pass runs $84.95, and a women's pass costs $69.95. Viewers can also purchase day or tournament-specific passes for lower prices.

"This is an incredibly exciting time for the future of tennis viewing," WTA president Stacey Allaster said in a statement. "For the first time we will be able to deliver live broadcast quality matches from both tours' top level tournaments to online audiences around the world."

Overall, the two tours plan to provide eligible fans with access to about 700 live streaming matches, interviews and matches on demand. Coverage will start with this week's Sydney International in Australia.

Last year, the WTA Tour's Web site broadcast a live women's match -- in select countries -- for free for the first time. The live feed of the Pacific Life Open final was not available to users in the United States, Japan, Hong Kong, Australia or any country in Europe.

Besides Europe, WTA matches on TennisTV.com will also be excluded from viewers in Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Syria and Tunisia. Also, the Sydney International won't be shown in Australia.

Despite charging to watch live matches in 2009, TennisTV.com will offer highlights from both tours for free.

"Tennis fans are changing the way they view the sport and we need to ensure we change with them," ATP media CEO Steve Plasto said. "This is the place to watch live and on demand tennis online."

Labels: ,

Nike Marketing

From Fortune...

These days, it seems harder than ever to get back in the game. You know, you take a time-out from corporate America–to spend time with your family (really!) or simply to reinvigorate–and what do you get when you try to return? Serious skepticism about your experience and relevance because (hey, haven’t you noticed?) the world changed radically while you were out.

So, it’s interesting that Liz Dolan, Nike’s (NKE) long-ago marketing boss whom I mentioned in Monday’s Postcard, got a call “out of the blue,” as she says, to come on board as chief marketing officer of OWN, Oprah Winfrey’s cable TV venture. OWN stands for the Oprah Winfrey Network, in case you didn’t figure that out. It’s Oprah’s 50-50 joint venture with Discovery Networks (DISCA), and it’s due to launch in the next year.

The world will change by then (we hope!), but the rules of building iconic brands won’t all that much: Whether the brand is Nike or Oprah or OWN, success basically derives from “the power of connection” with a target audience, Dolan contends. Oprah and her startup team–which includes former Viacom CEO Tom Freston, who built MTV–get that. Which is why they hired Dolan, who was once on Sporting News‘ “Power 100″ list of the most powerful people in sports and left Nike 12 years ago. From sports to Oprah may seem like a leap, but it’s really not. (For one thing, Oprah says her new network isn’t just for women.) As Dolan starts at OWN this week, she offers a few thoughts about what she learned along the way:

“I started at Nike August 1, 1988–just when the original ‘Just Do It’ ads were breaking. When I was interviewed for the job (initially director of public relations), I asked [Nike founder] Phil Knight why he was just getting around to hiring someone to manage media relations/PR. His answer was: ‘Well, last year we got sued by the Beatles.’ (You may remember the Revolution ad from ‘87?) We got a ton a bad publicity, but our sales almost doubled. I said to myself, ‘If bad PR could do that for us, what might some good PR do?’

“Craziest day at Nike? The day Michael Jordan retired from basketball (the first time). People outside the company (media, analysts, retailers) went crazy, as if it had never dawned on us that he would not be playing forever. This Chicken Little reaction was a real challenge. In fact, a good team inside the company had prepared for the moment. And now, in 2009, the Jordan Brand is still a major revenue source for Nike.”

After she left Nike in the fall of 1997, Dolan set up her own marketing consultancy, where her first assignment was marketing the Women’s World Cup soccer tournament. “The best day in my professional life,” she recalls, “was sitting in the Rose Bowl July 23, 1999 for the finals of the Women’s World Cup, looking around and seeing that it was totally, completely full, mainly of teams of girls who had come to see their heroes win it all.”

Her next chapter, starting in 2001: Satellite Sisters, a radio show featuring Liz and her four older sisters. (She has three brothers too!) Syndicated by Public Radio International and ABC Radio Networks (DIS), it was smart and fun. “I got to interview everyone from Nobel Peace Prize winner Wangari Maathai to my favorite Satellite Mister, Bradley Whitford, who will always be White House Deputy Chief of Staff Josh Lyman to me,” says Dolan, clearly a “West Wing” fan. (Bet she doesn’t know that Bradley Whitford’s brother is Fortune editor at large David Whitford.)

Now, as she gets back in the game, Dolan is carrying a lesson she learned at Satellite Sisters and at Nike too: “One good brand,” she says, “can give the audience a full range of experiences, from the serious to the silly–as long as you do it with respect and humor.”

P.S. To Dolan’s credit–and credit due to the Nike brand bosses who followed her–the world’s largest athletic shoe and apparel company has been outperforming most consumer giants lately. Nike stock is up nearly 60% in the past five years and 10% in the past two. The S&P, meanwhile, has Swooshed downward.

Labels:

Jan 10, 2009

Nike vs. Nadal

From tennistalk.com...

I strongly urge you to discount the opinion of anyone who tells you that professional tennis is void of entertainment value. Two noteworthy items captured my attention this week.

First, the ATP finally broke the news the tennis world has been waiting to hear since the summer- Harvard alumni and former Nike bigwig, Adam Helfant, was tapped to replace outgoing CEO, Etienne de Villiers.

Second, I had a chance to watch Rafael Nadal take center stage and debut his new look in Doha, Qatar.

Days later, and after much consideration, I have to admit it- neither decision makes the slightest bit of sense to me. In fairness, Mr. Helfant has yet to officially take his place as exalted leader of the ATP. I will reserve final judgement until the tennis community can confirm his success, or EdV-esque failure, whichever happens first.

I am ready to pass judgement on current world #1, Rafael Nadal's new look, however. In the simplest terms and least diplomatic way possible, I hate it. While Nike has developed an ambitious design for the Spanish superstar, the combination of canary yellow, longer sleeves and shorter pants come together to create an awful, inexplicable misfire. In my view, Nike has singlehandedly crafted the symbolic destruction of an international brand.

I had initially heard rumblings of a possible tog change over the summer- I laughed at the idea. Now that the possibility has become a reality, I no longer find any humor in the situation.

The WSJ published an article that called Nadal's signature look "adolescent." They went on to praise his decision to revamp it. Nadal, the story read, was poised to grow up and become a fully-fledged tennis adult. According to the corporate suits at Nike, they explained, the Spaniard found himself ready to "adopt a more traditional tennis look."

Nadal, having worn his signature "pirata" ensemble soon after he began on the tour, now looks....ordinary. His famously over-developed upper arms and shoulders are hidden from view. The trademark sleeveless shirts have been shelved, now replaced by an ill-conceived, generic polo. Those capri-style pants are gone too, supplanted by shorts that rest a few inches above his taped knees.

As I watched the footage of Nadal this week- he lost his quarterfinal match to talented Frenchman, Gael Monfils- I was struck by the familiarity of his garb. At first, I failed to connect the clothing to anyone. After awhile, I remembered where, and upon whom I had seen it.

For his part, Roger Federer has utilized a signature style as well- tailored and pitch perfect. Federer's look is conservative, timeless and a throwback to a bygone generation of tennis, where players trotted onto court in crisp, classic gear.

Rafael Nadal was now a carbon copy of the Swiss sensation and current world #2. Nike includes both men on their roster, of course, having designed their tennis apparel for years.

I had to wonder if Nadal had mistakenly signed a clothing contract with Nike that did not include a right-of-refusal clause. In a statement he voluntarily gave to the press, the Spaniard laid my puzzlement to rest:

"I am excited about evolving my on-court apparel with Nike to a polo and shorter-length short."

Apparently, Nadal had not been threatened with a breach of contract lawsuit afterall. Okay then, fair enough. If the man himself insisted he signed off on that canary yellow, longer sleeved and shorter short calamity, I need ponder the debacle no more.

Labels: , ,

Air Jordan 2009

From www.wwd.com...

There is a 24th Jordan shoe, but brand officials said the latest entry in the storied basketball series marks a new beginning for the brand.
Ending speculation that last year’s Jordan XXIII shoe would be the end of the line for the famous sneaker, Jordan brand execs — including Michael Jordan himself — were on hand yesterday in New York to unveil the latest signature shoe from the basketball great.

Brand execs called the Air Jordan 2009 a “new direction” for the company and hinted that international growth and an increased focus on women were in the future.
The changes start with the name. Unlike all previous entries in the franchise, the Air Jordan 2009 is named for the year. Jordan — who famously wore the number 23 during his days as a Chicago Bull — said he wanted a fresh start. “My number was 23, and I think [to do a] 24 would detract from what 23 really meant,” he said, calling the new shoe “a whole new legacy.” Another first for the brand was April Holmes, a gold-medal winning U.S. Paralympian and the first woman to join the Jordan brand.

She was a major inspiration for the design of the new shoe. The carbon fiber prosthetic Holmes wears to race was a catalyst for one of the Air Jordan 2009’s key technologies: a carbon plate incorporated into the shoe to increase propulsion and explosiveness on-court.
Brand President Keith Houlemard said that increasing the brand’s penetration into the overseas market will be a major focus for Jordan — especially in China. “China is a major opportunity for any brand in basketball,” he told FOOTWEAR NEWS. In the U.S., the shoe will drop in limited release on Jan 31 at a price of $230. The national debut is set for Feb. 14 (coinciding with the NBA All-Star Weekend), with a lower tag of $190.

Labels: ,

ATP Tour to Name New CEO

From USA Today...


Adam Helfant, a former Nike executive and Harvard-trained lawyer, is expected to be named the ATP Tour's new chief executive at the latest by early next week, according to SI.com.

SI.com cited people with knowledge of the process.

Helfant, 44, replaces Etienne de Villiers, whose three-year term ended last month.

ATP spokesman Kris Dent would not confirm or deny that the organization had settled on Helfant after an intense search this fall.

"The process hasn't finished and we are moving forward very positively," Dent said. "We expect to be in a position to conclude very shortly."

American Helfant, who studied engineering at MIT before earning his law degree at Harvard, spent several years as an attorney for the NHL before moving up the chain at Nike, where he most recently was vice president of global sports marketing. He left the Oregon-based sporting giant in 2007.

Helfant is a surprise choice for two reasons: His nationality and his tennis pedigree. Power in men's tennis has shifted to Europe in recent years, so many insiders expected a European to lead the organization, which is co-owned by the players and tournaments.

Many also anticipated the hiring of someone with an extensive tennis background after turbulent years under de Villiers, a former Disney executive and tennis outsider.

Helfant will need to bring his full marketing and legal skills to bear in his new job. He inherits an organization that last year lost the support of top players, has yet to replace its major sponsor (Mercedes) and faces a host of thorny calendar, revenue-sharing and broadcast issues in a harsh economic climate.

ATP board member Justin Gimelstob would not confirm or deny the hiring but said any candidate for the tour's top post would have strong support behind him.

"No one is going to get this job without the support of the players and the tournaments," he said.

A New Yorker, Helfant will likely relocate to London, home of the ATP headquarters.

Labels: ,

Jan 4, 2009

ATP CEO???

From TennisTalk.com...

A decision on the new ATP boss to replace outgoing supremo Etienne de Villiers should be known before the January 19 start of the Australian Open, with local media tipping current current official Brad Drewett as a top pick.


The 50-year-old former player is who reached a career-high ranking of 53rd and lifted two Australian Open junior titles in the 1970s, is reportedly on a short list fo the $1 million job along with former Nike executive Adam Helfant.
Interviews by an executive head-hunting firm were held in December in hopes of making an announcement before year-end but the timetable has been subtly slipped back a few weeks.

Drewett has run the ATP international Asia-Pacific division for a decade and a half and can take credit for spearheading the drive of the sport into China. He served as tournament director of the season-ending Masters Cup in Shanghai for all five of its editions before it moves to London - a de Villiers initiative - next November.


South African De Villiers, a former Disney executive, said he would step down at the end of the year after losing support of top players, many of whom had called for his replacement.
Other candidates in the mix for the top spot included a Florida-based ATP lawyer and several European candidates.

Labels: