Foothill Ranch-based Oakley Inc. is moving on some big changes.
Chief Executive Scott Olivet, a former Nike Inc. executive who joined the company four months ago, recently said he plans to refocus Oakley on sunglasses, ditch shoes and revamp the company’s clothes, among other things.
Look for the company’s marketing to change as well.
Oakley plans to “focus on a wider range of customers” in its marketing, according to Eric Beder, analyst at Brean Murray Carrett & Co. in New York, in a Feb. 10 report.
“Management’s new vision is more inclusive,” Beder said.
In the past, the company’s message and products were “somewhat hidden under a barrage of testosterone-driven, generation Y-based ads.”
Plus, analysts thought Oakley had a “myopic focus on the relatively small electronics sector,” with its sunglasses that double as digital music players, Beder said.
New ads are set to play up the “technical, safety and health advantages” of Oakley’s garb, such as polarized sunglasses, Beder said.
Oakley also is getting bigger in the fashion world with its $56 million pending buy of Los Angeles-based Oliver Peoples Inc., which has three brands: Oliver Peoples, Mosley Tribes and Paul Smith.
Oliver Peoples sells upscale sunglasses from $120 to $425 at its own stores, including one at South Coast Plaza in Costa Mesa.
The move could help widen Oakley’s appeal with women. Jennifer Aniston and other celebs are fans of Oliver Peoples.
The deal plunges Oakley into fashion sunglasses, an area where the company “has had difficulty gaining a material foothold,” Beder said.
Oakley said it plans to run Oliver Peoples separately.
“We believe this somewhat ‘hands-off’ policy is very wise and represents a new way of thinking at the company,” Beder said.
Oakley, known for its macho image, has made other moves to lure women. They include launching a Web site, www.oakleywomen.com, making sunglasses and bolstering its female design team.
There were some hits and misses.
Some denim and other lifestyle clothing had an Oakley “twist” but didn’t stand out from other brands, Beder said.
The company plans to streamline its clothing line, slashing “superfluous categories” such as women’s underwear, Beder said.
Oakley now plans to focus its clothes on golf, surf and motor sports.
The company also plans to nix lifestyle shoes and stick with sandals, golf shoes and boots. It’ll take a $6 million to $8 million charge for doing so in the second quarter.
“The changes in footwear demonstrate the real operating power Mr. Olivet has been given to reshape Oakley,” Beder said. “The footwear line was a particular favorite of the company founder Jim Jannard.”
Jannard is chairman and owns more than 60% of Oakley.
Hyundai Hispanic
Fountain Valley-based Hyundai Motor America Inc. handed its $30 million Hispanic advertising account to del Rivero Messianu DDB after a four-month review.
The ad agency, based in Coral Gables, Fla., and a unit of Omnicom Group Inc., also plans to handle the automaker’s regional dealer advertising.
Other shops in the review included Ole in New York and Lopez Negrete Comm-
unications in Houston.
Incumbent Omnicom’s Dieste Harmel & Partners in Dallas decided not to defend. Its contract ran through 2005.
Media buying remains at Carat USA.
Hyundai got a new vice president of marketing, Michelle Cervantez, in August.
Surf Movies
Huntington Beach-based Quiksilver Inc. is going after aspiring filmmakers.
The surfwear maker’s entertainment arm, Quiksilver Entertainment, recently started Quik Films.
The program kicked off with a contest in February where people can submit action sports-related footage for a chance to win cash and get their film distributed by Quiksilver.
The company launched its entertainment unit a few years back to help create exposure for the surf industry through Hollywood hobnobbing, including signing book and movie deals.
Submissions for this contest only can be a few minutes long and will be judged weekly on narrative structure, characters and visuals. People can view and vote on the films by going to www.quiksilver.com/films.
The winning short film each week will qualify for the final contest, where a winner and three runners-up will be chosen by Quiksilver.
The grand prize winner gets $5,000 to use toward the production of a film, which will be considered for distribution by Quiksilver.
The three runners-up will receive $2,500 for the development and production of films.
In other news, Quiksilver recently promoted Natas Kaupas to vice president of marketing of the Americas.
Kaupas, who also is the brand global creative director, will oversee advertising, promotions and online projects at the surfwear maker.
A professional skateboarder, Kaupas started in Quiksilver’s art department in 1999. He’s helped shape the global identity of the brand, including putting together campaigns and logos that use his handwritten script, the company said.
“He knows our team riders and his connection to our events, retailers and heritage make him an ideal choice to direct our growth in these areas,” said Marty Samuels, president of Quiksilver Americas.
