Li Ning Marketing Case Study

Satisfactory Essays
In its mission statement, Li-Ning vision is to be ¡§a world's leading brand in the sports goods industry.¡¨ While it is obvious that Li-Ning has been hugely successful in maintaining its brand image and sales growth in China, I believe that Li-Ning can further improve its market share by positioning themselves differently from the top 2 player in the industry: Nike and Adidas, by exploiting its comparative advantage over these multinational companies. The primary target customers for Li-Ning are students in both high schools and universities. Obviously, students are often on a limited budget and are price sensitive. Li-Ning are successful in capturing this segment of the market since they are priced 30% - 40% lower than other multinational brands while they maintain a strong brand image to keep its customers away from other local competing brands. Within the local market, while it is almost impossible for Li-Ning to overtake Nike and Adidas¡¦ position in the mega cities, they should continue to build on their domination in the second- and third-tier cities since it is their major income stream. It can be said that while Li-Ning could not match value with Nike and Adidas, they make up with volume. Therefore, they should avoid a heads-on confrontation with Nike and Adidas in these markets. Specifically, Li-Ning should expand its product portfolio and include sports such as tennis and golf, where the market is still young and fragmented. However, there are unlimited potential in these two markets in China. For tennis, the duo of Jie Zheng and Yan Zi became the first ever Chinese pair to capture a grand slam title in the Australian Open 2006, and its popularity is rising exponentially in China (see reference). For golf, it is fast becoming a favorite pastime especially among the middle-high income portion (mainly businessmen) of the population. Should Li-Ning allocate additional resources to expand on these two markets, they would be able to increase their

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Li Ning Case Study

    • 278 Words
    • 2 Pages

    Market Environment for Li Ning •Li Ning is operating in local market, competing with International brands (viz. Adidas,Nike) •More than 50% of active Chinese sport population is from Tier 2 & 3 cities •Market is poised for exponential growth in next 2 years (owing to Beijing Olympic 2008) •The household income for 70% of families of active sports teenagers (14-24 yrs) is less than RMB 4000. Li Ning is mainly operating in this segment. •60% of Active sports population is students : 45% University…

    • 278 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    | |Programme |Marketing | |Module Code |EAP105 | |Assignment Title |Compare and contrast the marketing strategies of Li NING domestically and internationally…

    • 1463 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Li Ning Case

    • 1311 Words
    • 6 Pages

    Marketing Management Group Assignment 1 Li Ning – Anything is Possible Submitted by (Group 18): PGP-11-091 Abhigyan Mundhra PGP-11-097 Aditya Narang PGP-11-102 Anant Damle PGP-11-133 Parag Aggarwal PGP-11-141 Prerna Lotlikar PGP-11-148 Ramya V. Supraja Is this company successful? Yes, the company is successful. And it is well envisioned and positioned to convert its opportunities into strengths. For Li Ning, its…

    • 1311 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Executive summary LI-NING limited company was found in 1980. At the beginning of its establishment, it cooperated with Olympic team of China to push the development of sports goods. At the same time, LI-NING spared no effort to sponsor all kinds of matches. In 1995, it became the leading sports brand of China. Through exploration over 20 years, it gradually becomes a famous international sports brand representing China. In this report, it makes a marketing plan for the next three years according…

    • 5085 Words
    • 21 Pages
    Best Essays
  • Good Essays

    Li Ning Marketing Plan

    • 1236 Words
    • 5 Pages

    Marketing Plan: Li Ning to be the number one in China sportswear market 1.0 Executive Summary The primary objective is to increase Li Ning¡¦s overall market share from the current 17% to 20% in 3 years time and defend its first place in China sportswear market against strong competition. To achieve this goal, Li Ning has to improve the customers brand perception, rationalize market segments and invest in Mega cities and first tier cities. 2.0 Situation Analysis As the dominant local brand…

    • 1236 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Li Ning Marketing Plan

    • 2802 Words
    • 12 Pages

    in Information Technology, Vol.14 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…

    • 2802 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    Li Ning

    • 254 Words
    • 2 Pages

    Management BITS Pilani Department of Management BITS Pilani | Li Ning- Anything is possible | Case study analysis report | | | 1/24/2013 | | Submitted To: Dr. R. Raghunathan Department of Management BITS, Pilani Submitted To: Dr. R. Raghunathan Department of Management BITS, Pilani Submitted By: Name: MANJU ID: 2012H149239P Submitted By: Name: MANJU ID: 2012H149239P INTRODUCTION Li Ning established in 1990 was one of the leading sporting goods company in…

    • 254 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Li Ning

    • 606 Words
    • 3 Pages

    Li Ning – Anything is possible Since its foundation in 1990, Li Ning, a leading sporting goods company in the China, has been experimenting a high speedy development that became company in the dominant domestic sport brand. Part of this success has been possible due to company’s strategy, which is based in extensive retailing, franchised stores, concessions and sponsorship to many sport teams. However, during the Asian financial crisis in 1997, company decided to reorganize its operations and…

    • 606 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Li Ning Company Limited Philip Warwick, The York Management School Background Li Ning is one of the world’s most profitable and biggest selling sports goods companies, yet it remains almost unknown outside China. Few sports enthusiasts or business analysts in Europe, or North America are familiar with the brand[i]. Li Ning takes its name from the company’s Chairman, a triple gold medal winning Olympic gymnast, who founded the sports goods company in 1989[ii]. It has a manufacturing near…

    • 1033 Words
    • 5 Pages
    Good Essays
  • Good Essays

    SWOT Li Ning

    • 5296 Words
    • 16 Pages

    will be an answer to the question: ‘’How can Li Ning beat Nike in Europe?’’. Li Ning Company Limited is one of the leading sports brand companies in China, headquartered in Beijing. In addition to its core Li Ning brand, the Group also manufactures, develops, markets, distributes and/or sells sports products under several other brands. Mr. Li Ning, is the founder of the Li Ning brand and was one of the most outstanding athletes in the 20th century. Li Ning’s main mission is to create a breakthrough…

    • 5296 Words
    • 16 Pages
    Good Essays