• Ad Age , Monday, November 13, 2006 11:04 AM

In an effort to reverse plummeting sales, Adidas admitted last week that it has under-supported the Reebok brand it acquired in the summer of 2005. So it has pledged to put at least $63 million behind the brand in 2007. Reebok received $7 million for the first half of this year in marketing support; sales orders have plunged 14%.

Adidas CEO Herbert Hainer says the company's primary objective for 2007 is to strengthen the Reebok brand, which was also hurt when Reebok's $250 million exclusive apparel deal with the National Basketball Association was transferred to Adidas.

Analysts say the acquisition impacted Adidas' bottom line because profit margins for Reebok are narrower in its main market--North America. Hainer anticipates doing a better job of branding Reebok in key international markets, including China, Russia and India.

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