New Balance, along with Adidas America and Asic America, has seen declines in share of the $3.6 billion U.S. running-shoe market and has struggled to keep pace with Nike, which holds a 56% share, according to SportsScan Info.
First national campaign
The sports apparel maker's incumbent, Boathouse Group, Waltham, Mass., will participate in the review. Boathouse created New Balance's last major ad effort, a $20 million multimedia campaign in 2005 -- more than the marketer's entire ad budget the year before -- that carried the tagline "For Love or Money?" It was the first national campaign for New Balance to feature its full line of products.
New Balance is hoping to better compete with Nike's popular Nike Plus line, which uses a device to connect an iPod to running shoes, giving runners information about their mileage as well as providing music.
But it's going to be an uphill battle to cut into market share, as Nike spent $220.5 million in measured media in 2006, according to TNS Media Intelligence.
Select Resources International, Santa Monica, is handling the review, which is expected to be complete in October.