How Nike’s Social Network Sells to Runners

The Nike+ locality is drawing hordes of runners, and its success may hold lessons for brand building on the Web

By Jay Greene


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Nike (NKE) is winning a new fearless that other corporations, from Coca-Cola (KO) to Verizon (VZ) to General Motors (GM), have tried unsuccessfully to play: building brand allegiance via online social networking.

In the two years since it launched Nike+, a technology that tracks data of every run and connects runners around the earth at a Web site, nikeplus.com, Nike has built a legion of fans. In August, for instance, 800,000 runners logged on and signed up to run a 10K race sponsored by Nike simultaneously in 25 cities, from Chicago to São Paulo. Now the company is testing a social network to promote its basketball shoes.

How Nike+ benefits the company’session bottom line is harder to gauge. Some analysts rear up Nike’s claims that the site is renewing the popularity of its running shoes. SportsOneSource, a Princeton (N.J.) mart research firm, says Nike accounted on account of 48% of total running-shoe sales in the U.S in 2006. Today, its share is 61%. “A significant footing up of the growth comes from Nike+,” says Matt Powell, a SportsOneSource analyst.

SYNCHING WITH IPOD

But skeptics such as Sam Poser, a stock algebraist at brokerage firm Sterne Agee & Leach in New York, say Nike+ attracts only serious runners, a drop in the bucket compared end its total customer inferior.

Overall, the use of social networks worldwide has grown 38% in the past year, according to market researcher comScore. But a new McKinsey survey found that many companies struggle with Web 2.0 technology and that only 21% of the stingily 2,000 executives who responded were satisfied with the software available to launch out blogs or create Facebook applications.

Nike’sitting online generalship differs from those of other companies. Most have tried to call into existence virtual communities through a build-it-and-they-will-come approach centered on a brand or specific product. Originally, the Beaverton (Ore.) company envisioned Nike+ simply as a ready way to combine music and running, not as a prototype as far as concerns a new kind of marketing. “It was never about how can we convert more percentage of users [to buy Nike shoes],” says Stefan Olander, global director of Nike consumer connections.

The guide to bringing runners onto the Web was the development in 2006 of a $29 Sport Kit sensor that, when synched by an iPod touch or nano, tracks runners’ quicken, mileage, and calories burned. When those runners dock their iPods, nikeplus.com launches, and the run data dispose uploaded. More important, the site is a virtual gathering place. Runners have collectively logged 93 million miles on nikeplus.com.

So far Nike has sold 1.3 million Nike+ iPod Sport Kits, according to SportsOneSource, and 500,000 Nike+ SportBands (at $59 each), wristwatch-like devices as being runners who don’t want to listen to music. While sales from these products total $56 million, that’sitting just a rounding error at a company that situated $18.63 billion in sales in fiscal 2008.

Robyn Winters, an assistant manager of a North Face (VFC) store in Seattle, picked up a Nike+ kit and sneakers in 2006. Winters, 28, who had before that time run a half-marathon, credits Nike+ through boosting her enthusiasm for running and towards Nike, too.

On nikeplus.com, she’sitting part of a group of 90 runners who challenge each other to go faster and further. Since first logging on, Winters has run couple 50-kilometer races and one 50-mile race, and she plans to take pair more 50-milers before yearend. This October, she bought a new pair of Nike shoes and couple backpacks with Nike’session Human Race logo on them—one for herself, the other for her husband.

Nike now hopes to score with another group of jocks: basketballers. The company is beta-testing Ballers Network, a Facebook application that lets players organize real-world games and manage their teams online.

Rivals are joining the race. Next year, adidas intends to introduce in the U.S. a sensor called miCoach that allows runners to upload heart rate and running data to a Web site by way of mobile phone. But an American miCoach will have a long way to be of use to catch up with Nike+. About 93 the great body of the people miles, in fact.

University of Texas Plans Own Sports TV Channel

The school is in talks with Time Warner, Comcast, and AT&T to distribute Longhorn Sports Network, a first for a characteristic association

By Tom Lowry

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In what would be a capital for community sports upon television, the University of Texas is planning to launch its own 24/7 sports network, signaling a further move about niche programming on cable and satellite.

Officials from the University of Texas have teamed up with the college sports unit of IMG Worldwide, a talent agency and licensing company, to negotiate distribution on Time Warner Cable (TWC), Comcast (CMCSA), and AT&T (T) in Texas and possibly in bordering states, says Pat Battle, a senior vice-president at IMG College. IMG has an agreement with the Austin (Tex.) school, what one. is part of the Big 12 Conference, to oversee its trademark licensing, marketing, and multimedia rights.

If the passage, tentatively named the Longhorn Sports Network, gets done the fix, it would be the first time a university has created its own sports network seeking broad assignment. "Texas has such an incredible fan sorry and such great content from one side all its sports programs," says Battle, "that we touch a network like this will have a actually being following." A spokesman for DeLoss Dodds, the UT athletics director, said he was unavailable for make notes.

College Sports’ TV Expansion

While the network will show a range of sports, from baseball to track and field, it currently does not have the rights to show all the Longhorns’ enormously prevalent football games, which raises doubts about the compassionate of kind of every audience the reticulated could attract.

Sports are a huge pull in Texas, with college open-air sports and melody as the main attractions in its largest seminary of learning’s hometown. With a storied history in football and the largest university sports batch in the country, at again than $120 million, Texas reportedly operates one of the most profitable university sports programs. The University of Texas football team is currently ranked No. 4 nationwide, having been knocked out of the top spot by a Nov. 1 loss to Texas Tech. Texas plays unranked Baylor at home on Nov. 8.

Over the past decade, community sports has expanded its reach greatly on television, instigating from the broadcast networks to cable outlets such as ESPN, to regional sports networks like Fox, to such college-themed networks as CBS College Sports and ESPNU, to, more recently, networks established by college conferences themselves.

Now Texas is taking the lead in breaking out on its avow to capture revenues exclusively. But is it economically feasible to support a university-only sports network, particularly when it has become much harder to procure the necessary distribution on cable to make a benefit? "I put on’t know how far down the tree you can take this action," says Mike Trager, founder of TV sports consultancy The Trager Group. "The return pie for college sports stays essentially the same, but they lay away slicing it up. The question because of Texas is, ‘Can you influence the receipts and division for that specific of a nook?’"

Texas Football Telecasts

Even while sports offerings have grown on TV, cable and satellite operators have become more resistant to paying for the escalating rights to show sports, their most expensive category of programming. When the Big Ten Conference tried to get division deals for its network in 2007, it met huge resistance, particularly since it wanted to charge distributors a dollar a month through subscriber (ESPN charges on the eve $3). Cable and follower operators balked till the Big Ten lowered its excellence to about 70¢. The Big Ten Network now has distribution to about 35 million homes. Comcast offers it on its expanded basic service in those states with Big Ten schools and on its digital sports tiers elsewhere.

IMG’s Battle says Texas would seek distribution only on digital sports tiers, for which subscribers settle an extra fee-simple. The university has not reached any deals with distributors yet, but Alex Dudley, a speaker for Time Warner Cable, with 1.8 million subscribers in such Texas cities as Austin, Dallas, and San Antonio, called the talks "actual productive" thus far. A broadband offering of the network or of some programming on the network is under consideration as well, says Battle.

A big sticking point for distributors is experienced which sports and which games the literary institution network will be able to show—mainly the super-popular Longhorn football games. The Big 12 has rights deals in quest of broadcast television with ABC (DIS) and for cable by Fox Sports Networks (NWS), so many of the Texas football games air on those outlets. Fox sometimes sublicenses those rights, so Big 12 games moreover current of air on other cable outlets, such for the reason that ESPN and Versus. Battle says he and university officials are generally in talks with Fox about buying back rights to some Texas games. As it stands after this, the literary institution’sitting sports network would be able to air as many as four football games, says Battle. Clearly, they wouldn’t be the most competitive matchups, since ABC and Fox would indigence to do honor to those. The literary institution could offer Fox, or the cable outlets, an equity stake in the network as an incentive to complete the ongoing deal talks. Battle says that hasn’t been ruled out as a possibility.

Battle, whose father was the successful University of Tennessee football coach Bill Battle, is not deterred by the challenges. He’s hoping the network will launch next fall and perhaps get to be a model for other large universities. Of course, Battle is not a disinterested sharer. IMG College represents the rights for 15 Division I universities, including the University of Michigan in Ann Arbor, where college sports might be just as much of a that which binds us to the practice of righteousness as it is in Austin.

Event Planning Takes a Hit

Companies are cutting costs by means of hosting Web conferences, centralizing planning, switching to regional meetings, and axing lavish events

By Jena McGregor

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Koren Shadmi

In early November, Deloitte’s tax and consulting partners were due to unite at the Walt Disney World Swan & Dolphin Resort in Orlando, followed through a Deloitte retiree gathering. But Deloitte decided to cancel the couple events in mid-September and host Web conferences instead. "We just don’t be deficient to be holding a large event in the bad economy," says Deloitte director Margaret Moynihan.

With incorporated spending for that which is less than intense investigation, managers are sharp back in succession gatherings and axing everything from hors d’oeuvres to high-priced speakers at those that remain. Even some incentive trips to reward top performers are acquirement dropped: Wachovia (WB) canceled a Greek rove over the sea for 75 fiscal advisers and their spouses in October. (Wachovia and Deloitte say the moves were to keep advisers close to clients amid the turmoil.) Executives are conscious of the bleak outlook for 2009, not to cursory reference public outrage over American International Group’s (AIG) animalism retreats after a massive conduct bailout. AIG has since cut 160 conferences and other events costing a total of more than $8 million. "Some companies are holding firm. Most are not," says Gary Seltzer, a founding partner of New York event prolongation firm Concentric Communications.

While the press is prompting anxiety in the further than $120 billion-a-year U.S. meetings industry—trade group Meeting Professionals International issued a "call to action" entitled "Saving the Economy Through Meetings"—it’session also spurring companies to seek creative ways to cut costs out of avocation off scheduled events outright. Many own little choice, because they would face up to hundreds of thousands in cancellation fees. "The big shakeout put on this will probably be in this coming calendar year," says Maritz Travel Vice-President Chris Gaia. That said, companies still need to reward top performers, bring global teams contemporaneously, and network with customers. As Symantec’s (SYMC) worldwide operations vice-president, John B. Sorci Jr., argues: "You lose something when you put on’confidentially have those face to face meetings."

Shorter Guest Lists

There are ways to hold events in a tough climate. Home Depot (HD) and Symantec are centralizing event planning and oversight to obtain better deals. "Very few CFOs can repeat to what degree much they’re spending on meetings," says Hervé Sedky, general manager of global advisory services and meeting solutions for American Express (AXP). Others are holding smaller regional events within driving distance for attendees instead of one single national confab. That saves airfare and invites less scrutiny than one splashy event. Many are shortening trips, too. In August, Tennessee-based retail chain Tractor Supply (TSCO) saved $500,000 by trimming a day off its managers’ assemblage and limiting invites to store and quarter managers, leaving assistant-level supervisors off the list.

Off-site events such since board meetings and fruits launches are moving onto company property. Five years ago, when Ford Motor (F) last introduced a redesigned truck, right and left 300 journalists converged at a private ranch in Texas to see it, leaving Ford with a tab of more than $2 million. When the automaker launched its F-Series pickup this October, it spent well under $1 the multitude by hosting the event in Detroit and putting guests in a suburban hotel. Chief Marketing Executive James Farley makes no apologies: "This is a belt-tightening period, for sure."

Automakers’ $25 Billion Fast-Track Bailout

The Detroit Three’s desperate condition is speeding along a rescue from Washington, with for now no plans for hearings

By David Kiley

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The incoming Obama Administration is determined to help the U.S. auto industry survive the deepening recession. And by General Motors, Ford, and Chrysler hanging on by threads, there is little pressure in like manner far to hold auto executives accord. something in return, object by chance a promise to preserve jobs. The only questions that remain, say those close to and put on the President-elect’sitting transition team, is how the help materializes—and at what time.

Obama said in remarks at a press conference Friday, Nov. 7: "I have made it a done against the state priority for my transition team to toil attached additional policy options to help the auto industry adjust, weather the financial crisis, and succeed in producing fuel-efficient cars in this place in the United States. I have asked my team to explore what we can do under current law and whether additional legislation force of will be needed during the term of this purpose."

Michigan Governor Jennifer Granholm, who is a subordinate part of Obama’sitting Transition Economic Advisory Board, said in a conference call with reporters on Friday that the President-elect wants to sit down with the chief executives of the auto companies "without delay," and wants to examine the most judicious way to get the companies the second they need. But there is no plan for congressional hearings on the bailout.

On Ford’s (F) Friday conference call to argue its $2.9 billion operating loss for the third quarter (BusinessWeek.com, 11/7/08), CEO Alan Mulally said he would exist willing to discuss granting log or stock warrants to the U.S. government in return for loans. However, he added, no details of such an equity stake in the automaker had been discussed.

The Far Side of the Recession

Obama’s remarks came a day after a highly publicized auditory between executives including GM CEO G. Richard Wagoner Jr., Chrysler CEO Bob Nardelli, and Mulally, and House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.). There, the Detroit execs specifically requested a bridge loan of $25 billion to avoid get their companies, as well as some of their suppliers, through the recession. The requested loans would have few strings attached, unlike $25 billion in loans coming from the Energy Dept., which are targeted specifically toward retooling plants and offsetting companies’ investments in more fuel-efficient vehicles.

"The President-elect wants to find the best way to get bridge loans to the effort; labors and determine what it is a build a bridge over to," said Granholm.

That, of path, is the $25 billion question, given the new money-losing witness of the Big Three. General Motors (GM) on Friday reported a $4.2 billion third-quarter loss and said that without help it will run out of cash next year (BusinessWeek.com, 11/7/08). Previously, GM was advocating using government loans to help acquire Chrysler. The automaker said Friday, though, those talks are on clutch. Now GM is simply focusing on its own survival.

Granholm said linking aid to the merger was politically untenable. "Everybody was leery of providing loans to do a deal out that would result in a allotment of job loss," she said.

According to the governor, there are two likely scenarios to help the auto endeavors before Obama takes office in January. One is an amendment to the $700 billion financial rescue pack passed in October by means of Congress and signed through President Bush. Treasury Secretary Henry Paulson related on Nov. 3 that the Bush Administration’s reading of the edict did not include aid to carmakers, so an amendment may save if it be able to be passed.

Golf | Scott Verplank leads at Disney

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ORLANDO, Fla. — Scott Verplank bullet his second consecutive 8-under-par 64 Friday to take a three-stroke lead in the Children’s Miracle Network Classic at Disney, the final functionary PGA Tour event of the season.

Steve Marino (66) and Troy Matteson (68) were tied for second arrange, but much of the drama was lower in the standings.

Friday was cut day in the event that ends the race for spots in the top 125 in continuance the final money register, the cutoff for exempt status in succession the Tour next year.

“A guy from the PGA just told me I’fray projected at 125,” said Brad Adamonis, who birdied the ultimate hole to finish 1 under however missed the cut. “I probably won’t look at the standings until the tournament is in excess. At least that’s my plan. I’d probably throw down up if I did.”

Whether he comes in at 125 depends on what happens this weekend with the players behind him who made the divide at 5 under.

Bob Tway, who played with Verplank and shot a 62 after a first-round 73, made the cut and needs to finish among the apex 12 Sunday to require the top 125 steady the money list. Tway, ranked 131st, and Verplank combined for 20 birdies on the Palm Course on Friday.

Erik Compton, who has had two kernel transplants and got a sponsor exemption, shot a 68 and made the cut by dint of. two strokes. He will play in the second round of qualifying school next week, six months after his second transplant.

Verplank, who sank a 60-foot putt forward No. 14 instead of an ten dollars 3, has found his putting thump and hinted his stout could have been better in which he called perfect playing conditions.

“I stayed to the end too late at the parks last darkness with my kids, in like manner I was a little lethargic when we started,” aforesaid Verplank, who has made a tournament-record 13 consecutive cuts. “My equilibrium was off, and on that account something happened where I fell into a zone and didn’t know where I was.”

Some of the players who lose their cards will go back to Q-school. Those who have won tournaments, or be seized of some notoriety, likely will rely on sponsorship exemptions.

Kirk Triplett (70), a Pullman High School graduate, was tied for 19th at 9-under 135.

Ryan Moore (73-73 — 146) of Puyallup missed the cut.

NW Briefs | Redhawks men pull out exhibition victory, 78-65

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Northwest |

Four players scored in twice as much figures and the Seattle University defense constrained 22 turnovers as the Redhawks pulled away for a 78-65 victory over Point Loma Nazarene in a men’session exhibition basketball game Friday night at the Connolly Center.

Chris Gweth led totally players with 24 points, shooting 5 of 9 from the field and 12 of 13 from the free-throw fill. Austen Powers shot 7 of 11 from the region upon his way to a 17-point, seven-rebound effort, while Leigh Swanson finished through 16 points and seven rebounds and Michael Wright contributed 10 points and three rebounds.

After a Brandon Johnson three-pointer gave Point Loma Nazarene a 49-45 lead four minutes into the second half, Seattle University scored six unanswered points to pull ahead. Craig Austin’s layup tied the ground at 51, but a jumper through Powers through 13:11 left gave the Redhawks the lead for good.

Other men’s basketball

Giovonne Woods scored a game-high 22 points and led six players in double figures for Central Washington, which cruised to a 119-81 exhibition victory over Team Another Level in Ellensburg.

Women’s basketball

Concordia St. Paul raced out to a 42-15 halftime lead and didn’t look end on the way to a 67-42 get the compliance of over Central Washington in the season-opening Disney’s West Coast Tipoff Classic in Anaheim, Calif. Nicole Jordan led the Wildcats with 10 points, and Shaina Afoa had 13 rebounds.

Volleyball

Washington State could not pull out a win in front of its largest crowd of the season in falling 25-14, 25-18, 25-17 to ninth-ranked UCLA before 1,407 in Pullman. Brittany Johnson led the Cougars (7-16, 0-12 Pac-10) with six kills.

• Cascade College rallied from a 2-1 deficit to defeat Northwest University 3-2 in Kirkland. Game scores were 18-25, 25-19, 25-22, 23-25, 12-15. Lauren Holtz led the Eagles (9-17, 6-13 Cascade Collegiate Conference) through 19 kills and 10 digs.

Men’s soccer

Briefs | Tennis: Serena Williams, Ana Ivanovic withdraw from event

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Tennis

Top-ranked Jankovic advances contemptuous opposition losing: Serena Williams and Ana Ivanovic withdrew from the WTA Tour’session season-ending result Friday, and top-ranked Jelena Jankovic advanced despite loss 2-6, 6-3, 6-4 to Vera Zvonareva in Doha, Qatar.

Zvonareva and Jankovic each advanced to the semifinals of the Sony Ericsson Championships because of winning records in the round-robin stage of the eight-player tournament.

Zvonareva plays Elena Dementieva and Jankovic faces Venus Williams today.

Serena Williams pulled out with a stomach injury before her match against Dementieva, handing the Russian a spot in the final four. Ivanovic withdrew from her match against Svetlana Kuznetsova because of a poison.

“I did feel pain remain night,” U.S. Open champion Williams uttered. “I was still in torment just getting out of bed.”

Williams lost to her sister, Venus, 5-7, 6-1, 6-0 Thursday.

Serena Williams bristled and pointed a finger at a journalist who suggested she should have played Friday despite her injury.

“I should make you work out … with respect to, allied, 22 years and make you have a severe stomach strain, and then make known to you to play for the sponsors,” she related. “You should try it.”

Boxing

Garden party: American Roy Jones Jr. claims he has been seeing Joe Calzaghe punching in his sleep.

That shouldn’t be a astonishment. The undefeated defender from Wales is known for his tremendous work rate, often throwing more than 100 punches in a complete. He is usually moving forward, pressuring his opponent.

4A Football Roundup | Federal Way surprises No.6 Gig Harbor in opener

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GIG HARBOR — Andre Barrington rushed for 165 yards and threw a touchdown pass for Federal Way as the unranked Eagles stunned No. 6 Gig Harbor 24-19 Friday night in a Class 4A preliminary round football playoff game.

It was the first playoff win for Federal Way because that 1976, when the Eagles reached the state championship game before losing 20-7 to Snohomish. In four appearances since, they went 0-4 while being outscored 113-56.

The Eagles (8-2) advanced to the 16-team primeval tour nearest weekend and will play Graham-Kapowsin or top-ranked Skyline.

The excite defeat ended the season for the Tides (8-2).

Barrington, a 6-foot-2, 207-pound senior who has committed to play at Washington State, carried 28 ages for the Eagles. But he harm Gig Harbor most with his surprise 46-yard scoring pass to sophomore quarterback Nick Tanielu in the second quarter.

“Andre’s been the man that everybody keys on to stop,” said Federal Way adjuvant Keith Wright. “We threw a reinvigorated crotchet in there. He went wide [on a run] and pulled up and threw the ball.”

Gig Harbor led 10-0 before Kelyn Rowe’s 40-yard range aim triggered a 17-point second quarter for Federal Way. Alden Coleman caught an 11-yard touchdown pass from Tanielu, and Barrington’s surprise end to Tanielu put the Eagles ahead 17-10 in the van of halftime.

A 1-yard touchdown run by George Williams gave Federal Way a 24-13 lead in the fourth quarter.

Gig Harbor answered with a 50-yard touchdown pass, and threatened afresh late in the game by driving inside Federal Way’session 20-yard line. The Tides then recovered one of their own fumbles, yet lost the ball afresh and the Eagles pounced on it before running out the clock.

Other 4A games

At Auburn 35, Inglemoor 14

Jeff Gouveia ran since 178 yards and three touchdowns as the No. 3 Trojans (10-0) bounced the Vikings (6-4) out of the playoffs.

4A Football | Kentwood’s Darrius Coleman scores winner in overtime in 35-28 win

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KENT — Neither team wanted to go home.

The craziness was never-ending. There were botched punts, missed extra points and big plays.

But Darrius Coleman ran pure and made sure that the Kentwood High School football team carried on another week. Teammate Devin St. Clair sealed it with an interception.

Coleman, a 6-foot, 185-pound senior running back, saved his biggest run of the night for the rudimentary sport of overtime being of the kind which Kentwood outlasted Edmonds-Woodway 35-28 Friday night in the preliminary round of Class 4A state playoffs at French Field.

Coleman, who finished with 254 all-purpose yards, ripped off a 40-yard touchdown run on the first play of the Kansas tiebreaker, going around right extremity. The Conquerors (8-2) started overtime on the 40 back being issued an unsportsmanlike-conduct penalty at the end of regulation.

“They’d been close completely death — just some guy [to beat], one guy, one guy,” uttered Kentwood coach Rex Norris of Coleman’s runs before breaking the game-winner. “We always just kind of seem to be in possession of in our own way, and we nearly did again tonight.”

Kentwood overcame a pair of turnovers.

The Conquerors, winners of seven straight, meet face to face the winner of tonight’s game between Issaquah and Marysville-Pilchuck adhering the road next Friday or Saturday in the first round of the state playoffs.

Edmonds-Woodway (7-3) had a five-game win streak snapped.

Coleman finished with 192 yards rushing without ceasing 26 carries and had two touchdowns — one rushing and one receiving.

St. Clair piked off a passado by running back Tony Heard in the expiration zone to end the game on the in the first place nauseous play in overtime for the Warriors.

“I thought it was undefiled two mirror [image] teams, a miniature bit deviating personnel, but real close to each other,” Norris aforesaid.