http://outside.away.com/magazine/0498/9804lance.html
Lance Armstrong Brand
became Livestrong
Livestrong morphs into Nike 10/2
Nike 10/2 is Armstrong's equivalent line to the Michael Jordan jumpman line, that they instituted post retirement (second time round, prior to Washington), and the same business model as Tiger Woods' Nike line. This business model is pretty simple sports personality merchandise marketing 101. See Greg Norman's Shark line for Reebok, and previously the pioneers were probably Arnie Palmer and Jack Nicklaus, with his Golden Bear line at McGregor.
So, Nike does the sums, they cannot turnover enough cycling kit to the Sunday morning doctors and accountants, so they divest the line to Trek. But Armstrong is still of huge value, not necessarily to the bottom line, but a leader and symbol of the vision that Nike wishes to project. His lines will never be a bump on the P&L compared to Tiger and Jordan, but his story is key to Nike. The Livestrong virtue that it confers over the entire corporation, are no doubt appreciated in the boardroom.
What does Nike do, they look to maintain a semblance of arms length to the LAF, but they still badge every piece of merchandise from the 10/2 Armstrong line with the yellow Livestrong cuff or loop. This contributes one dollar to the LAF. Nike maintain their unit variable profit margins on this shirt or shoe, or shorts, which cost them 60 cents to manufacture in Indonesia.
Armstrong is probably on a two tiered contract with Nike, he sees a piece of the profit from his line, plus he still has his traditional endorsement deal though it will have decreased greatly. In effect, Nike shifting more of the burden of Armstrong's endorsement to profit from his gear line.
So, why is he doing this high profile running, which, on the face of it, pertains to be fund raising events? He is trying to get the 10/2 line off the ground and shift units, and conflate the Livestrong brand with 10/2, cancer, and charity, 30$ t-shirts, one dollar to cancer.
There.
Lance Armstrong Brand
became Livestrong
Livestrong morphs into Nike 10/2
Nike 10/2 is Armstrong's equivalent line to the Michael Jordan jumpman line, that they instituted post retirement (second time round, prior to Washington), and the same business model as Tiger Woods' Nike line. This business model is pretty simple sports personality merchandise marketing 101. See Greg Norman's Shark line for Reebok, and previously the pioneers were probably Arnie Palmer and Jack Nicklaus, with his Golden Bear line at McGregor.
So, Nike does the sums, they cannot turnover enough cycling kit to the Sunday morning doctors and accountants, so they divest the line to Trek. But Armstrong is still of huge value, not necessarily to the bottom line, but a leader and symbol of the vision that Nike wishes to project. His lines will never be a bump on the P&L compared to Tiger and Jordan, but his story is key to Nike. The Livestrong virtue that it confers over the entire corporation, are no doubt appreciated in the boardroom.
What does Nike do, they look to maintain a semblance of arms length to the LAF, but they still badge every piece of merchandise from the 10/2 Armstrong line with the yellow Livestrong cuff or loop. This contributes one dollar to the LAF. Nike maintain their unit variable profit margins on this shirt or shoe, or shorts, which cost them 60 cents to manufacture in Indonesia.
Armstrong is probably on a two tiered contract with Nike, he sees a piece of the profit from his line, plus he still has his traditional endorsement deal though it will have decreased greatly. In effect, Nike shifting more of the burden of Armstrong's endorsement to profit from his gear line.
So, why is he doing this high profile running, which, on the face of it, pertains to be fund raising events? He is trying to get the 10/2 line off the ground and shift units, and conflate the Livestrong brand with 10/2, cancer, and charity, 30$ t-shirts, one dollar to cancer.
There.
Kristen would be nice, but not Lance.
