Marketing Plan for Li-Ning Product Expansion in UK Xin Zhang Dept. of Sports Economics ＆ Management, Wuhan Inst. of P.E . Wuhan, China Keywords: marketing Plan; expansion; Li-Ning Company
Abstract. Through the analysis of UK market situation for Li-Ning Company. This paper makes a marketing strategy for Li-Ning product expansion in UK and also includes the financial forecast, evaluation and control. Introduction Li-Ning Company Limited is a major Chinese athletic company which makes athletic shoes and sporting goods. Li-Ning branded products are targeted for consumers play in sports such as running, basketball, badminton, football, tennis, and fitness. Li-Ning counts Nike and Adidas as its main competitors which endorses a number of athletes and teams, both domestic and abroad. In 2005, Li-Ning created a joint-venture with French sports apparel company, AIGLE, which was given the exclusive right to be the distributor of AIGLE's products in China for 50 years. His Company directly owns some of the retail stores while others are franchised. On January 2010, Li-Ning opened its U.S. headquarters and flagship store in Portland, Oregon. Market Summary Sports participation and general apparel are both fragmented markets, but sportswear features a more concentrated structure, centered on a small number of key companies and brands. These are led, at both UK and global level, by Nike and Adidas Group. Macro-environmental Analysis. PESTEL framework：A macro-environmental PESTEL stands for Political, Economic, Sociological, Technological, Legal, and Environmental. PESTEL analysis is in effect an audit of an organization’s environmental influences with the purpose of using this information to guide strategic decision-making (Shank, 2009). The key issues are summarized below: Politics: the EU has recognized the social value of sport and published a Code of Sports Ethics. Public sports strategies are increasingly linked to the activities of the departments of health. Healthcare strategy is increasingly shifting towards preventative action to reduce diseases and premature death caused by the unhealthy lifestyle. Economic: economic decisions on sports must always be implemented at a local level and take regional and local issues into account, with impacts on the local or even the national economy. The Olympics 2012 win for London brought this issue into focus, with predicted claiming that the Games could bring in a national income of up to £3bn. Purchasing power affected by the global economic slowdown recently. Sociological: Sport as an entertainment developed out of the move to professionalism with important social impacts. Technological: use of modern technology in functional products, fashionable sportswear is often sold in 'retro' styles because these are so firmly established in the consumer consciousness. Environmental: the company is consistently complying with environment laws to protect environment, like waste disposal, energy consumption or carbon footprint and becoming a green 978-1-61275-012-5/10/$25.00 ©2012 IERI
efficient customer. Mico-environmental Analysis Market Size/ Growth. Evaluated by the terms of direct consumer spending in sports market, the overall market was worth exactly £10bn in 2008, and is provisionally estimated to have fallen to £9.85bn in 2009 as the recession took hold and trends continued away from formal, competitive sports and `equipped' sports. The basic reasons for relatively low consumer spending are twofold: the ability to follow professional sport in the media (mainly television) at a low cost to the consumer; and the government subsidy provided for sports participation in terms of local facilities. Furthermore, the trend to `pure' fitness activity such as road running or aerobics classes, away from competitive, `equipped'...