4p Analysis of Li-Ning

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4P Analysis

Product
Li Ning focuses mainly on providing specialized and technical sports equipment including shoes, clothes, equipment as well as accessories.

Horizontally, Li Ning categorized its product line as follows:
Athletic Pro: advanced sports equipment to both athletics and normal consumers.
Urban Sports: fashionable sports and casual wears.
Brand Heritage: incorporate brand value with high fashion and technology.
Crossover: designed by new edge artists.

While vertically, the product line was built to be:
Running, basketball, badminton, gym and what they defined as “urban light sports”. Under each category, Li Ning was able to provide consumers with extensive product portfolio

Price
To adapt to Chinese consumers’ price acceptance while maintaining a competitive price level, Li Ning had set a relatively reasonable price level which is 30%~40% lower than international brands like Nike and Addidas and 50% higher than local brands like Anta and Peak.

However, Li Ning also did price segmentation according to its multiple product line. For example, the most expensive advanced footwear cost about rmb 700~1000+, while the cheapest ones cost about rmb 100. The majority of the products were priced at rmb 200~500.

Place * Franchise
Li Ning has presence in 10 provinces in China with more than 6000 stores across the country. Although these stores were not under Li Ning’s direct operation, it had set up branches in major cities to manage the sales activities of franchisees. Stores were operated by local dealers who were familiar with the local market. * E-commerce
Li Ning started its e-commerce since 2007, and set up its official online store in 2008. In less than a year, the online store has generated a revenue of rmb 200 million.

Promotion * Brand image rebuilt
In 2010, Li Ning launched its brand new logo, slogan and commercials in order to rebuild its brand image among its major targeted consumer, the 90s. *

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