Anything is Possible

Name: Barbie (Li Shihui) Department of Foreign Languages Student number: 24090701710

Abstract:

As a major Chinese athletic company which possesses brand marketing, research and development, design, manufacturing, distribution and retail capabilities, Li Ning company has gradually on the way of realizing its three strategic phases. From my point of view, the third stage that is

becoming one of the top-five global sporting goods brands is feasible and practical.

Key words: Li Ning; marketing strategy; competitive advantages With the more rapid development of globalization and more fierce competition, the pressure of Li Ning cannot be underestimated.

Nowadays, Nike, Adidas and Li Ning are the main representatives of the sporting goods industry. What is more, many small and medium sized new brands have follow suit, like Anta and Hongxing Erke,etc. It was revealed from reports that Li Ning ranks the third one with its 8.7% of shares. Why this company dares to make the plan of becoming one of the top-five global sporting goods brands? I will elaborate my view in the following passages.

一. The unique marketing which distinguish Li Ning from both international brands and local rivals. 1. The differential marketing strategy.

Simply speaking, it is a market-coverage strategy in which a firm decides to target several market segments and design separate offer for each.¹ Li Ning began to carry out its strategy at the end of 2002. Then in 2004, it turned into the first local brand which targeted the professional basketball market and at the same year, the company brings out “the three-to-three campus basketball game”. After executing a series of integrated marketing offensive like public activities, advertisement, terminal promotion and innovation of

packaging, Li Ning company realized the promotion of its brand value and strengthen the market competitiveness. 2. Tournament sponsorship marketing strategy.

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Sports sponsorship is a strong tool of communication. It can not only deliver the brand information to consumers in a relaxed and all-concerned atmosphere, but also make the brand blend in people’s lives. In 2005,Li Ning signed a contract with NBA, the world’s top

basketball games, and became its official market and strategy partner. And in 2010, Li Ning signed many NBA basketball stars as their image spokespersons. Through these sponsorships, Li Ning company widened the differences from many other local brands. 3. Brand cooperation and acquisition strategy. 3.1 cooperation Examples:

On the January, 11th, 2007, Li Ning Company signed a six-year strategic cooperation agreement with CABB in Beijing. This is a very important pace that marked the beginning of Li Ning’s internationalization strategy.

In 2008, Li Ning’s Olympics strategy achieved a big success. It

provided the specific Olympic equipments for the sports heroes signing at home and abroad. What is more, it strengthened the communication interactive between consumers and improved its brand image through their flagship store and road show tour from the aspect of the product’s development, design, channel construction and marketing.

In 2011, Li Ning cooperated with Know1edge, one of the trend representatives in Hong Kong, to make a new plan for the series of Li Ning’s collaboration project collection. They brought out three types of casual sneaker. This cooperation had stirred up the interest of youngsters from all over the country. There is no doubt that the cooperation strategy has always been effective. 3.2 acquisition Example:

In 2007, Li Ning acquired the total 57.5% equity stake of “Double Happiness” with 305million Yuan.

In 2009, Li Ning acquired the Kasson’s battle Dore, sports clothes and sports accessories business.

Personal thinking, these kinds of acquisition can on the one hand improve Li Ning’s popularity, and on the other hand, can increase the

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profit and its marketing. Also, Li Ning can join different cultures together to create a more powerful and diverse culture industry. 二. National spirit and oriental characteristic 1. National spirit.

The key point of the success of Li Ning should rely on its national spirit. In the 1990s, the Olympics gold medal represent the patriotic and national spirit. Li Ning , wear his own brand clothes, won the gold medal in the Olympic games. This showed a strong sense of national honor. Therefore, Chinese consumers may more likely to buy the

national and local brand. However, this strategy is becoming more and more weak compared with other famous sport brand’s high quality and high price strategy. They gradually become a symbol of reputation and statue. Because of this, Li Ning is trying hard to bring their products to the world market, finding a position in this huge marketplace. 2. Oriental characteristic

Li Ning’s brand culture is closely connected with Chinese culture. This kind of oriental culture is the key point that distinguishes us from other countries and other cultures. We should use it and create our own brand culture. This is what Li Ning has always been doing. I think Chinese companies all should pay attention to this point. If Li Ning can use this oriental characteristic well, the road to its aim will be more smooth.

三. Other competitive advantages 1. Reasonable price 2. Higher user loyalty

User Loyalty Index brand data

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Nike 37% Li Ning 53% ANTA 37% PEPSI 35% ²

It is evaluated by three indexes: The total satisfaction, the intention of re-purchase, the possibility of recommendation. 3. Clear and all-sided market segmentation Conclusion:

Even though Li Ning still have many problems to solve and will be confronted with various challenges, I still firmly believe that it will reach its goal and have a more prosperous future .

Reference:

1. Wikipedia on-line answers.

2. The report of Li Ning’s marketing strategy, on line.

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