sports sector,
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The world’s largest athletic shoe and clothing maker,
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Nike’s reining in ad spending,
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"They have such penetration in their marketing budget that they can use attrition to cut off contracts,
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"You’ll definitely see a different allocation and you’ll definitely see some reduction,
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Companies such as General Motors Corp and FedEx Corp have cut marketing budgets,
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Nike officials would not address specific plans,
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"As part of restructuring our business,
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"There are opportunities for reductions in endorsement contracts and we are evaluating them on a case by case basis,
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Eliminating deals with lesser athletes,
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"They still want to uphold the spending on their marquee athletes,
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In the process of dumping contracts,
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Nike spent an estimated $255 million to $260 million on sponsorships last year,
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The shoe giant spent $143.4 million on advertising in the first nine months of 2008,
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Nike surprised analysts in December by stressing cost tightening during a conference call following third quarter results. In the past,
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"Nike’s sports marketing strategy looking backwards was a little bit more free spending than it will be moving forward,
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Credit Suisse analyst Omar Saad wrote in a Wednesday research note that Nike is at the beginning of a longer term restructuring that will extend beyond just job cuts,
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"We think a story of slowing revenues will be overshadowed by Nike’s willingness and ability to cut expenses in the coming quarters,
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Nike’s North American marketing budget is likely four times the size of what No. 2 player Adidas AG spends,
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Shaw said Nike has also started spending its marketing dollars more wisely,
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"They’re still using their brand power and big,
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