Skechers Pins Turnaround On American Idols' Cook

American Idol winner David Cook Skechers USA hopes that signing American Idol winner David Cook to endorse the brand globally will reinforce the athletic shoe company's cool, hip brand image. But some marketing executives are casting doubt on the strategy.

Robert Passikoff, president of the brand consulting firm Brand Keys, believes its not an effective strategy because its the category that's in trouble, not just the brand.

Indeed, the Cook deal, signed through 19 Merchandising Limited on behalf of the artist, was announced just a month after analyst firm Wedbush Morgan Securities lowered Skecher's rating to "Buy" from "Strong Buy" because "a potential shift toward more athletic styles could pressure sales of the company's core low profile product," says Wedbush Morgan Securities analyst Jeff Mintz.

"There are few brands that control categories," says Passikoff. "It requires more than a celebrity endorsement to change the direction of a category, but endorsements are marketing's answer to shifts." The downgrade has contributed to a subsequent drop in Skechers stock price.

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Steve Silver, partner at New York-based marketing firm Helios Consulting, also cast doubt on the long-term benefits of choosing a little-known artist from American Idol to represent the brand.

"The artist may have success on the show, but you don't want your company to be associated with someone who ultimately becomes a joke, because they can damage your reputation," Silver says. "If they sign artists like Carrie Underwood they're fine. If they have someone who hasn't been as successful, then its pretty risky."

The endorsement deal gives Skechers exclusive worldwide rights to advertise footwear using Cooks image. The campaign, which launches fall 2008, will run through December 2009, using print, outdoor and in-store ads that feature the 25-year-old artist in various Skechers styles that reflect his interests and style.

Jennifer Clay, Skechers USA VP of corporate communications, declined to talk about specific advertising campaigns, calling it "premature." But she said the campaign would have a broad reach across demographics, and that "David Cook has a similarly broad appeal," she says.

The campaign coincides with the "PopTarts American Idols Live! Tour 2008" and the debut of Davids first post-Idol album on 19 Recordings/RCA Records. It marks the first male celebrity to make Skechers' roster since 2002, when actor Robert Downey Jr. represented the global brand, and the second American Idol winner; Carrie Underwood was the first in 2005.

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