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Copy of Marketing project - Li Ning in NA

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Katy Long

on 22 February 2013

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Transcript of Copy of Marketing project - Li Ning in NA

Who is Li Ning? Chinese Gymnast 3x Gold Retired 1988 2x Silver 1x Bronze Medals: Born 1963 Chinese Sportswear Manfacturer Li Ning & Zhang Zhiyong, CEO of Li Ning Company Limited Based in Beijing, China Founded 1990 Li Ning Company Ltd Revenue: $1.255 billion Net Income: $146.9 million in US $, FY 2009 Products Athletic shoes, apparel & accessories Running, Basketball, Badminton, Tennis and other sports Swot Analysis Company 4297 Li Ning stores in China 2005: Joint-venture with AIGLE Core Values "We" culture Breakthroughs Integrity & Commitment Consumer-oriented Achieving Excellence Weaknesses Weak global brand name Weak international distribution channels Similar products as competitors High Profit Margins Economies of Scale Strong domestic brand name Diverse product lines Innovation & Product Design Strengths Increasing spending power & expenditure on sportswear in North America Many Chinese immigrants with brand awareness Price-sensitive customers Opportunities Product similarity with competitors National pride does not transfer Cultural differences Threats Price heuristic causing low-quality perception Background Situational & Environmental Analysis Industry Overview Big opportunity in the U.S. Market Growing spending power & healthier lifestyles contributing to sportswear sales Competitors Major U.S. sportswear brand Athletic shoes, apparel & sports equipment 2010 Revenue: $19.014 billion Internationall recognized Germany-based sportswear manufacturer Sports footwear, apparel, accesories & equipment 2010 Revenue: €11.99 billion Marketing through sponsorhip: Key NBA supplier Largest European sportswear brand Human rights concern Market Share Problems Domestically succesful, but how about internationally? Only 1.1% of sales from international operations How to expand Li Ning's market? How to enter U.S. market specifically? How to outperform competitors? Segmentation Segmentation by demographics Sex (both) Age (people who work, have stable income, ) Income (low prices -> low income group) Ethnicity (initially target Chinese-Americans who are already aware of the brand) Positioning map Company & Background PESTO Anaylsis Recent recession in U.S. market Asian economic crisis (affecting manufacturing) Trend towards healthier lifestyle Increasing demand for corporate social responsibility IT in marketing information system (segmentation, differenciation) and consumer management Technology in production and packaging Numerous competitors in U.S. market New potential competitors Local, domestic laws International laws Domestic law in home country Marketing Strategies Marketing Objectives Break into US sportswear market Transfer brand image from China Gain significant market share Marketing strategies Strategy option 1 Low price Find distribution partner (e.g. Walmart) Competitive pricing Economies of scale (through large volume) Strategy option 2 Niche markets Marketing development strategy Focus on professional sports brand image
- swimming wear
- sports equipment (tennis, camping)
- footwear (hiking) Strategy option 3 High-end Sponsorships (of athletes & sporting events) Fashion shows Large-scale advertisement & promotion Fast brand awareness & recognition Higher costs & risk Same strategy as main competitors Age Consumer Analysis 7-11 Conclusion Any questions? We chose strategy 2: Niche markets Less direct competition
Target customers 35-54 -> largest total number
Focus on the most popular sports for this age group: Bus 343 Intro
to Marketing
Presentation: Li Ning
in the U.S. 12-17 # of people participating in sports 19,436 18-24 25-34 35-44 45-54 55-64 65+ 25,116 29,438 37,808 40,807 43,821 32,985 38,261 1. Exercise walking 2. Exercising w. equipment 3. Swimming 4. Bowling 5. Weightlifting 6. Hiking Brand awareness in targeted market niche Market Share in targeted market niche Expand product range Don't become China's Nike, but become the world's Li Ning Time Little direct competition Smaller market Economies of scale -> High sales Price heuristic (low-quality perception) Customers loyal to other brands Larger demand Less risky (less investment necessary) Relate brand image to athlete's image First-mover advantage Some sports are "new territory" for the company Focus on building the brand image rather than mass production
Focus on long term relationship building rather than short term profit
Be able to target on specific customers and meet their needs Decision Positioning Cheryl Wu
Brandi Zhang
Miya Chen
Moritz Schorr
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