What Swoosh? Nike Logo on Down Low at L.A. Marketing Push

Not everybody is impressed by the world’s most dominant brand names. However, one of the most dominant footwear and fashion labels—Oregon-based Nike Inc., which earned $18.6 billion for fiscal 2008—made a gambit to win over hip young adults who avoid mainstream fashion brands as a badge of honor.

To appeal to this crowd, Nike moved into one of their neighborhoods and built a house where the iconic swoosh logo was not the main topic of conversation.

The company’s Nike Sportswear division refurbished and rented out the 82-year-old Ricardo Montalbaacute;n Theatre in Los Angeles’ Hollywood neighborhood recently. Nike Sportswear later set up a pop-up shop in the theater. Then it invited the region’s hip youth to look inside and party. Nike Sportswear’s residency, which has been formally called Nike Sportswear at The Montalbaacute;n, met one hallmark of success. Nike Sportswear’s theater residency was scheduled to end on Halloween, but it was asked by The Montalbaacute;n management to stay until the end of 2008.

One reason for its success has been the overflow crowds. On Oct. 23, 1,300 people made a reservation for Nike Sportswear’s weekly “Cinema Tuesdays” night, which seats 630 people for free screenings of first-run, independent movies.

Movies are not the only activities. A Hollywood- based dodgeball league held a tournament on the theater stage. Students from the Los Angeles Unified School District were invited to clinics on sneaker design and a music clinic with Beastie Boys collaborator Money Mark. Graphics of popular street artist Geoff McFetridge were posted on theater wallpaper as well as on a billboard and building walls outside The Montalbaacute;n.

Nike Sportswear branding executive Robbie LaBelle declined to state the price tag for his company’s generosity. However, it has been estimated that refurbishing The Montalbaacute;n’s film projector booth and sound system cost $15,000 alone.

Nike’s bills may not be paid off by the Nike pop-up shop at The Montalbaacute;n. While an estimated 75 to 100 consumers visit every day, many are there to browse. But LaBelle said commerce was not the entire point of the venture. “We're continuing to support the arts here in Los Angeles,” LaBelle said. “Through our partnership with the theatre, we deliver unique events and unexpected retail to the community. I think we've accomplished that here.quot;

University of Southern California marketing professor Marlene Morris Towns said she thinks Nike Sportswear’s residency at The Montalbaacute;n will pay off. “Youth who feel they are outside the mainstream reject big corporate brands,” Towns said. “This strategy mixes the brand with forms of entertainment that they enjoy. Once it becomes part of their lives, not just a product they use, it will foster brand loyalty.” —Andrew Asch