"The first step was to make Allen cool and the I3 product cool," Munroe said. "Now we want to connect that with the Reebok brand." In addition to outfitting NBA teams, Reebok's new contract with the league calls for it to make and sell licensed merchandise, such as NBA and Women's National Basketball Association replica player jerseys. The company will also make and sell an exclusive line of NBA-branded basketball shoes.
The license should add at least US$40 million to US$60 million in sales next year, Landes, the Sanford C. Bernstein & Co analyst, wrote in a report. It should also help the company gain sales at athletic-specialty chains, where teens make up a large bloc of consumers, analysts said.
"That's where Reebok has targeted to boost their sales," said Wells Fargo's Shanley. "That's part of their strategy to enhance their position with teenage males." David Martin, an executive director with Omnicom Group Inc's Interbrand, a brand-consulting service, said Reebok may be able to change its image with teens within a year if it strikes the right chord. Some analysts believe there may be a long way to go.
What Iverson "hasn't done is give an umbrella effect for the Reebok brand in total," said Powell of Princeton Retail Analysis.
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