LI-NING STRATEGIC RECOMMENDATION USA 2015
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Li-Ning is a Chinese sports brand founded in 1990 by Olympic gymnast Li Ning. While successful in China, the brand has little awareness in the US market which is dominated by Nike and Adidas. This strategic recommendation proposes building a digital ecosystem and community around Li-Ning to engage younger Americans aged 15-25 and increase the brand's market share. Key recommendations include developing websites, social media, a co-branded app, influencer marketing, contests and incentives to foster sharing and user-generated content using the hashtag #Lining. The goal is to position Li-Ning as a brand that brings friends together through sport.
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LI-NING STRATEGIC RECOMMENDATION USA 2015
- 2. PLAN I/ Li-Ning & Market introduction II/ From Target to Concept III/ Strategic Recommendations 2
- 3. I/ Li-ning & Market Introduction 3
- 4. LI-NING • Founded in 1990 by Li Ning a former Chinese Olympic Gymnast • Headquarters in Beijing, and US ones opened in 2010 + A flagship shop in Portland • Quoted on the Hong-Kong Stock Exchange in 2013 • Partnership with Chicago-based Acquity Group to improve its distribution and brand awareness Revenue: US $1.354 billion in 2010 Net Income: US $220.9 million 4
- 5. LI-NING Shift in the identity in 2010: 让改变发⽣生 for non Chinese speakers Make the change 5
- 6. BRAND OFFER Product: Li-ning: Sports footwear & apparel, equipment & accesories Sports: Running, Basketball, Badminton, Football, Tennis and Fitness Place: 2007: 4,297 Li-Ning retail stores, some owned, some franchised Promotion: Athletes & teams endorsements in China & around the world, NBA: Baron Davis, Shaquille O’Neal, Damon Jones, Dwyane Wade who left Jordan brand for Li-Ning Apparel provider for Olympic Gamers Since 2006, collaboration with Limited sale edition in 2006 6
- 7. SWOT STRENGTHS WEAKNESSES • Good sponsorship of NBA • Increase in sales since last years • The quality of product is recognised by sports industry • Investment in media since several years (TV ads) • 1st annual loss since 2004 • No brand awareness in USA • Brand identity too close form the Nike Swoosh • Dry Laundry - Greenpeace report on massive pollution in China including a lot of brand OPPORTUNITIES THREATS • Sport culture is really important in the USA • Sportswear market is evaluated between $480 and $620 billion • Challenging market conditions in China • Economic crisis since 2008 • USA has the largest number of obese people • Other brands invest huge amount of money in communication • Brands like Adidas or Nike are more legitimate to sell in USA 7
- 8. MARKET Brand Value in Billion $ 16 14 12 15 10 8 6 4 5 2 1,5 1,4 Reebok Under Armour 0 Nike Adidas Forbes: http://www.forbes.com/pictures/mlm45eleik/forbes-fab-40the-most-valuable-brands-in-sports-2013-3/ 8
- 9. MAPPING 9
- 10. PROBLEMATIC How Li-Ning can emerge in the US sportswear market and increase its market share among younger people whereas the market is already saturated by historical brands? 10
- 11. II/ From Target to Concept 11
- 12. OBJECTIVES • Increase market shares among young Americans • Improve brand awareness from none to aided awareness • Attribute distinctive qualities to Li-Ning Equipments • Increase visibility on the digital • Create a WOM process – community 12
- 13. TARGET Main target: Y Gen • 15-25 yo • Boys & Girls • Enjoying sports • Fickle, no brand loyalty to a brand 13
- 14. TARGET Core target: Digital Native - Ultra Connected • 15-25 yo • Boys • Involved in a sport team: Basket, Badminton… • Spend more than 52 hours per month on internet • Spending on average 2,3 hours per day on social media 18-25 yo University students Using the Internet each day through a computer or a laptop for more than 5h13 per day 14-17 yo High School students Multitasking on digital channels Mobile: an average use of 2h25 on internet per day Social, Digital & Mobile around the world – We Are Social – Jan 2014 14
- 15. TARGET Secondary target: Teens • 15-19 yo • Boys & Girls • Fashion conscious • Entertainment focus, Serie Addicts 15
- 16. TARGET Influencers: • • • • Vloggers Bloggers Influencers on Social Media (Twitter, Instagram…) Journalists in People, Lifestyle, Entertaining, Teens magazines 16
- 17. COMPETITORS Nike = Health / Lifestyle Recently Jordans = Lifestyle Miley Cyrus 23 – Jordan shoes Adidas = Both Street Style / Sports conscious Foot locker Snoop Dog 17
- 18. CONCEPT Federate younger people through the idea of COMMUNITY Bringing your friends together to share sporty moments 18
- 19. POSITIONING Li-Ning, Bringing friends together A new look at competition, See it through your friends’ eyes 19
- 20. RTB It’s more than a game, or a competition! It’s the story of people doing things, sharing success and feeling emotions together. 20
- 22. STRATEGIC RECOMMENDATION Global Advice • Build a digital ecosystem – improve traffic through different platforms – increase the time spend inside the brand channels of communication • Invest in Social media to support the community & invite people to create UGC 22
- 23. STRATEGIC RECOMMENDATION Global Advice • Facilitate every interaction with digital channels through links, buttons and Twitter/Facebook Connects • Aggregate information into a Database, & consolidate them to push personalized offers 23
- 24. STRATEGIC RECOMMENDATION Global Advice • Provide a great amount of content to invite people to discuss about it and to improve our organic ranking in Google • No massive invest in event/media like the Superbowl but repetition in leads mind through a presence in every channel 24
- 25. STRATEGIC RECOMMENDATION Global Advice • Creation of the hashtag #Lining • Federate every content about the brand around a Hashtag => 1 unique database to measure the digital echo • Stick to an agreed strategy > 1 use per channel for a greater message clarity 25
- 26. ECOSYSTEM Website Thorough reworking on every digital channels Dedicated Website wayofwade.com/ Brand Website not e-commerce li-ning.luhta.com/ Corporate Website lining.com/ 26
- 27. ECOSYSTEM Dedicated website The ecosystem needs CONSISTENCY Corporate Website Core platform: Brand Website E-commerce A Blog Provide content & demonstrate expertise 27
- 28. RENAMING 1 use per channel Li-ning.luhta.com Lining.com/ Wayofwade.com BRAND CORPORATE DEDICATED Lining.com Liningbusiness.com Wayofwade.com Blog Lining-blog.com 28
- 29. WHAT’S INSIDE / BRAND SITE Core platform Simple platform Ecommerce Web responsive Personal Account > Facebook/Twitter connect Good quality pictures of products + descriptions + consumer reviews Special offers Share buttons 29
- 30. WHAT’S INSIDE / BLOG CONTENT COMMUNITY Phase 1: The content/community are managed by the brand Display articles, interviews, videos to attract a community Phase 2: The content/community is managed by its own members who will discuss own subjects through different forums 30
- 31. APP Co branding with an existing app: TEAMUP Principle: “Get together with people in your area, looking to get out, get active and have fun” J 31
- 33. SOCIAL MEDIA • Main plateform : #Lining • Hashtag • Livetweet • RT • The central network to activate the others channels 33
- 34. SOCIAL MEDIA • Broadcasting products explanation & athletes interviews • Shoppable video • Comment inside videos 34
- 35. SOCIAL MEDIA Will relay & display Photo & Video: • News • Events • People wearing Products • Contests > Incentive “Serie” Relay #Lining Aggregating UGC 35
- 36. SOCIAL MEDIA Animate the community • Use of Boards: New/ Products/Videos/Trends/ Around the world By color/products/sports • Use of Open Graph: Post the pin directly on Facebook and Twitter 36
- 37. SOCIAL MEDIA Will relay: • special offers • Promotions • Contests Relay #Lining Aggregating UGC 37
- 38. BLOGGER/VLOGGER Keep the world informed about company’s latest products, projects and achievements • • • • • Press Releases Send free products Try it Create content Impulse WOM 38
- 39. INCENTIVE 39
- 40. INCENTIVE Contest: Play against Wade Contest ONLINE Tournament OFFLINE Principle: • Invite friends to create a team • Share it • Invite other friends to Like • Reward: Tournament against Dwyane Wade 40
- 41. INCENTIVE • Contest: Sponsor My Team • High school football/basket/badminton teams • Reward: Sponsor the winning team (customized shoes+ sweat) • Principle: each team will post one tweet with #Lining #SponsorMyTeam • Winner: Most RT 41
- 42. INCENTIVE • Contest: Act in your favorite show • Instagram contest: Replay one of your favorite scene with friends wearing #Lining shoes • Winner: Most Likes • Reward: Visit Teens shows set 42
- 43. STREET MARKETING • A specific vending machine for 2 friends • Finds shoe sizes thanks to a Kinect • Allows them to try pairs of sneakers Grab & Try
- 44. MEDIA RELATED 44
- 45. TALK SHOW • Shazam your Talk show • Principle: Scan with your shazam app the display and redirect you on the e-commerce website 45
- 46. PRODUCT PLACEMENT • Teens TV shows: + Mini series youtube 46
- 47. IN-STORE 47
- 48. POS • Some shops will be equiped with a giant TV screen Content display • Instagram pics of the #Lining community • Tweets of #Lining • Livetweet with #Wade #Lining • Videos/Ads 48
- 49. PLANNING 49
- 50. PLANNING 50
- 51. BUDGET BUDGET Website Blog Social Media Presence App co-‐branding > Play against Dwyane Wade > Act in your favorite Serie > Sponsor my team Street Marke=ng Shazam > Talk shows Product Placement RP Blogger/Vlogger POS+PRINT TOTAL 51 $90 000 $40 000 $190 000 $13 000 $150 000 $40 000 $50 000 $700 000 $200 000 $100 000 $30 000 $400 000 $2 003 000
- 52. Thanks for your attention Q&A 52