New Adidas Ownership May Mean Bad News for Young & Rubicam By Beth Heitzma
CHICAGO – Last week’s announcement that Saatchi & Saatchi ceo Robert Louis-Dreyfus acquired a controlling stake in German-based Adidas A.G
Sources said last week that Louis-Dreyfus, who officially steps down as chief executive of Saatchi & Saatchi P.L.C. at the end of March, has already talked to agency heads inside the Saatchi network about pitching global category assignments.
‘Louis-Dreyfus is definitely going to give the agencies in the Saatchi network a shot at this business,’ said one source. ‘He has already promised agencies in the network a shot at the business.’
Young & Rubicam/Chicago has weathered two years of uncertainty as the agency for Adidas U.S.A., which was renamed Adidas America two weeks ago in conjunction with the announcement that two former Nike marketers, Rob Strasser and Peter Moore would take the helm as chief executive and creative director, respectively. Y&R president Pat Cafferata did not return phone calls as of press time.
Adidas America will handle design, marketing and advertising for the basketball category on a worldwide basis, as well as for the Adidas sub-brand, Equipment. All other categories, such as soccer and tennis will be handled on a worldwide basis by Adidas Europe.
Adidas spent approximately $5 million in the U.S. last year, according to Y&R and was expected to increase its spending to $7 million in 1993. Moore said budgets are currently under consideration.
Moore said last week that Y&R is still the agency for Adidas America, however he admitted changes were coming. He also said that despite the global categories that Adidas has established, he is not convinced one agency should handle, for instance, the basketball category worldwide.
Moore said Y&R will finish a few projects already in the works and then Adidas America will probably stop advertising efforts to assess its advertising direction.
Copyright Adweek L.P. (1993)
