Preview

The Difficult Brand Revitalization of Li-Ning

Powerful Essays
Open Document
Open Document
1955 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Difficult Brand Revitalization of Li-Ning
Marketing Case Study: The Difficult Brand Revitalization of LI-NING
Introduction
The case study explores how LI-NING brand which has been the No.1 domestic sporting goods brand was revitalized to satisfy the development objective of the company and to meet the challenge of the changing market. This report first introduces the company and its brands. Following this section, SWOT model is applied to analyze the situation faced to the company before the brand revitalization. The specific comparison of the brand STP strategy and 4P tactic before and after the brand revitalization is in the next section followed by the evaluation of this event. The report concludes with the proposition that instead of simply revitalizing the brand, the company should differently operate two brands to maintain the dominance as the top of sporting goods industry.

Introducing LI-NING Co., Ltd. and Its Brands
LI-NING Co., Ltd. commenced business in 1989. The “LI-NING” trademark was also registered in the same year. The company sponsored the Chinese delegation for Barcelona, Atlanta, Sydney and Athens Olympics in 1992, 1996, 2000 and 2004. It was officially listed on the Main Board of the Hong Kong Stock Exchange in 2004, becoming the first Chinese mainland sporting goods company listed in Hong Kong. In 2005, LI-NING Brand was awards as My Favorite China Brand. The company adopts a multi-brand business development strategy. In addition to LI-NING brand, it also operates the other 5 brands, including Z-do, Double Happiness, Kason, lotto, AIGLE. The data in Figure 1 clearly indicates that LI-NING is the core brand of the company since its revenue accounted for more than 90% of the total revenue of the company between 2006 and 2010. Figure 1: The Percentage of Revenue by Brand (From 2006 to 2010)

PDF created with pdfFactory Pro trial version www.pdffactory.com

100.00% 90.00% 80.00% 99.60% 70.00% 60.00% 50.00% 97.60% 95% 91.7% 92.1% Other Brands LI-NING Brand

Year
2006 2007 2008
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Steps for Cleaning Fertilizer Spreading Machine
    • 378 Words
    • 2 Pages

    Steps for Cleaning Fertilizer Spreading Machine

    Hongxing Company lays much emphasis on the quality and clients. We serve clients with the quality guideline of being responsible for every working procedure, every product and every client. What we have done is for the clients and we believe that quality is the best way to develop market. All of the products have passed the authentication of ISO9001. Hongxing Brand is the Chinese Famous Brand. Reliable and stable quality is the key to success. Our products are well known at home and abroad. Now we have tens of thousands of users throughout China and more than 30 world markets.…

    • 378 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Li And Fung
    • 254 Words
    • 1 Page

    Li And Fung

    Li & Fung is a logistic/distribution (place) company (one stop sourcing) and supplying consumer brands. It’s hard to produce their own brand because they are usually having relationship with consumer brand. They also need to have quality control, marketing and other stuff. The success of the company depends on the company knowledge. Besides, in order to produce their own brand, Li and Fung also needs to design their products which suit to the market. Li and Fung also needs to know how to market the products. If they are making their own brand, it makes their consumer become their own competitors as well and it is less likely for the consumer to keep using Li and Fung as their sourcing company.…

    • 254 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Balanced Score Card Week 4
    • 1174 Words
    • 4 Pages

    Balanced Score Card Week 4

    In determining the company’s financial objectives, it is important to reflect on consumer wants, competition, and customer satisfaction within the business, as evaluated in the SWOT analysis. The first strategic objective found within the organization 's financial perspective is to increase the organization 's market share. “Our diversified business model is one of the keys to our success. Each of our brands is managed within a coalition structure: Outdoor & Action Sports, Jeanswear, Sportswear, Contemporary Brands and Imagewear. This structure enables us to leverage our size, scale and global expertise across each coalition, while ensuring that each brand is managed by leaders who are deeply connected to their brands” . As of 2012 revenue for Contemporary Brands are at four percent of profitThis magnitude of this objective gains its value as the percentage increase in market share grows after adding two trainers per market. Measuring the percentages will assist the organization in determining if they have attained their vision, which involves annual increase of 2% in the market share.…

    • 1174 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Best Essays

    Concept Proposal Report
    • 2612 Words
    • 11 Pages

    Concept Proposal Report

    With respect to the modernized lifestyle, more and more city residents are suffering from sub-health. To avoid the sequence of sub-health, conscious consumers demand more natural and healthier products. Innocent is a remarkable brand of healthy food. It is marked by the pure fruits ingredients and has become the market leader of fruit smoothies. Innocent targets young professionals and Innocent smoothies are popular as healthy drinks at lunch. However, from the target’s consideration, healthy drinks can’t fulfil their psychological needs namely stress release and inspiration. Based on recent research, a quarter of workers feel stressed a lot of time. Those in the £15,500-24,999 income bracket are particularly worried (Mintel, 2009). It means that there is a large, potential demand of stress release product but a scarcity of supply.…

    • 2612 Words
    • 11 Pages
    Best Essays
    Read More
  • Better Essays

    Vans: Skating on Air
    • 631 Words
    • 3 Pages

    Vans: Skating on Air

    Problem Statement: The key issues in the Vans: Skating on Air case are how to drive the next stage of growth for the company. To arrive at this answer, management must consider which product categories Vans should participate in, which distribution channels Vans should be in and how to integrate into the places their customers want to be.…

    • 631 Words
    • 3 Pages
    Better Essays
    Read More
  • Best Essays

    Harley Davidson Case Study Essay Example
    • 2163 Words
    • 9 Pages

    Harley Davidson Case Study Essay Example

    In the automotive industry Harley Davidson is a prominent brand for its exceptional product and customer loyalty. Harley Davidson is the leader in heavyweight motorcycles market from the very beginning of its operation; it has created its own specific customer group. This report will discuss how SWOT Analysis a marketing theory applied to Harley Davidson simultaneously this report will focus on a range of features of the company including marketing plan through loyalty program. Harley Davidson products are not just giving riders an outstanding riding experience it’s a lifestyle. The company experienced complexity to keep hold of their customer in the market due to the entrance of cheap Japanese motor cycles. Simultaneously Harley Davidson exploring new markets such as India without lowering its product quality and customer loyalty.…

    • 2163 Words
    • 9 Pages
    Best Essays
    Read More
  • Powerful Essays

    Marketing Plan Billabong
    • 7605 Words
    • 31 Pages

    Marketing Plan Billabong

    In the world there are 194 countries and Billabong has sold their product over 100 countries, the major regions are the North America, Australasia and Europe. There are several smaller regions that are selling products of Billabong, such as Australia, New Zealand, Singapore and more (Billabong n.d.). Billabong has been recognised in Australian and most in European countries for more than 10 years in the boardsports industry, yet Billabong has a limited consumer in a limited area with the high competitors. In order to survive with the limited consumer spending observed in 2007, Billabong must adopt a strategy that is not necessarily focused on cutting costs and monitoring pricing. Also a brand “Billabong” should contain no internal contradictions and it should be consistent over time. Billabong consistency must be maintained through all channels, and communicate the same values, whether it be to shareholders, corporate affiliates, or at the retail or consumer level through service delivery. This report is to analyze how current business environment and the acquisition impact on Billabong, as well as providing a realistic strategic planning in the future recommendation and evaluation. The study has divided into four main sections. The first section contains the information of Billabong as the history of the industry, Marketing environment, product and consumer evaluation and competitor analysis. The second section provides the marketing objective. The third section applies the marketing strategies. Lastly, the major part of evaluation and monitoring is how to evaluate the problems and overcome the enormous amount of competitive pressure from competitors such as Quiksilver and Rip Curl.…

    • 7605 Words
    • 31 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Honda and Taurus Made a Run at Being Number One
    • 2542 Words
    • 11 Pages

    Honda and Taurus Made a Run at Being Number One

    Case Preview: In the US market there were intense competitions during the end of eighties and the beginning of nineties. The US Cars market was characterized by an intense competition in the mid- size cars “SEDAN”. During 1988 Ford Company was ranked the first in terms of selling cars in the United States, and in 1989 Honda attacked Ford Company and assumed the lead in the Unites States. In the wake of loosing number one position, Ford Company was compelled to work hard to recover this first place in the midsize category in the 1992. To that end, It adopted some strategies, such as reshaping Taurus and taking the safety position to change its image to meet customers’ needs and wants. This case study discusses the intense competition between the two wellknown brands (Ford Taurus and Honda Accord). When Ford became in the challenging position, it adopted some attack strategies to recapture the leading position in sales of the Mid-size Sedan. The case study further presents a profound analysis that goes over all the strategies adopted by Ford in competition with Honda to achieve its goal. Problem Definition in the Case: Ford Taurus was lagged by thousands of cars in sales to Honda accord (?). Furthermore, to become Number 1, “The Leader”, and beat Honda, Ford set up several strategies and stood to the management (?). The staff was capable of achieving the strategies, and the gap between the two companies obviously shrank by the time Ford achieved its objective in early 1993. SWOT Analysis Understanding Your Strengths, Weaknesses, Opportunities and Threats The importance using SWOT analysis SWOT Analysis is a very effective way of identifying your strengths and weaknesses, and of examining the opportunities and threats you face. Carrying out an analysis using the SWOT framework will help you to focus your activities into areas where you are strong, and where the greatest opportunities lie. Again, consider this from an internal and external view - do other firms seem to…

    • 2542 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Biore Pore Pack
    • 1361 Words
    • 6 Pages

    Biore Pore Pack

    Kao Corporation made a big hit in the industry of personal care product with Biore Pore Pack launched in 1996 in Japan. However, after the successful launching, Biore Pore Pack faced intensive competitions which threatened its brand and positioning in the market. (1) As such, there is a need for a critical analysis of the marketing environment SWOT analysis.…

    • 1361 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    Compare and Contrast the Marketing Strategies of Li Ning
    • 1643 Words
    • 7 Pages

    Compare and Contrast the Marketing Strategies of Li Ning

    China Daily (2012). China 's sportswear brands nurse Olympics hangover. [online] Beijing: China Daily. Available from: http://www.chinadaily.com.cn/business/londongames/2012-07/02/content_15542591.htm. (Accessed: 12 October 2012)…

    • 1643 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Cost Curves
    • 20411 Words
    • 101 Pages

    Cost Curves

    whose brand name was recognized throughout Asia. By 2004 HiSense was not only one of China’s…

    • 20411 Words
    • 101 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Li Ning
    • 254 Words
    • 2 Pages

    Li Ning

    Li Ning established in 1990 was one of the leading sporting goods company in Guangdong, China. According to Zhang Zhiyong, CEO attributed Li Ning’s performance to number of competitive advantages related to brand reputation, unique “value” positioning, extensive and efficient distribution and dynamic corporate culture. The growing affluence and mounting interest of Chinese consumers in Beijing Olympics has provided an opportunity to the sporting goods industry. Li Ning has projected a growth of 33%, which is strong relative to other local brands but pale in comparison to the global brands like Nike and Adidas. The CEO wanted to have category leadership for Li Ning. This category leadership could be achieved through marketing strategy which aimed at projecting Li Ning as a unique differentiated brand in people’s mind at the time of Beijing Olympics 2008.…

    • 254 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    eaasy
    • 4891 Words
    • 20 Pages

    eaasy

    analysis and implications for the next step in building the brand became vital for the company’s…

    • 4891 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Good Essays

    Li Ning and the Market
    • 688 Words
    • 3 Pages

    Li Ning and the Market

    Even though Li-Ning is a well-known brand in China and recently debuted its flagship store at Orchard Ion this year, the brand name is still unfamiliar to many Singaporeans. There are a couple of reasons to that and we shall look into what are the reasons that might be impeding Li-Ning from becoming a well-known brand in Singapore, what Li-Ning is doing to become famous as well as recommendations to build up on its image.…

    • 688 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    How Does a SWOT Analysis Help in Formulation of Strategies
    • 280 Words
    • 2 Pages

    How Does a SWOT Analysis Help in Formulation of Strategies

    SWOT not only tells us the strengths, opportunities, weaknesses and threats of an organization but it also help in generating the view that how can we overcome the weaknesses by our strengths, how the firm can achieve its targets by utilizing the enriched opportunities available in the market, how the firm can deal with the threats using its strengths and these are the initials that a strategist should know before making strategy as he should know the productivity and success of a strategy is depending upon these factors. By looking at the organizations own structure and its competitor’s outlook one can craft a strategy that can differentiate them from their competitors, so that the organization can compete and take a large pace in the…

    • 280 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics