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 in China sports market, Li Ning is facing intense competition from its multinational competitors. Li Ning¡¦s growth rate is 23%p lower than Nike¡¦s and 13%p lower than Adidas¡¦. Li Ning owns a well-established distribution channel, a powerful R&D team, and broad brand awareness in the China market. All these factors provid Li Ning with the opportunity to achieve a larger market share in China¡¦s booming sporting goods market, which is expected to grow to, conservatively, 55 billion RMB by 2008. 2.1 Market Summary By focusing on University students and second and third tier cities and by underestimating the stronger purchasing power and trend-setting effect of Mega and first tier cities, Lin Ning has lost market share in the first tier cities. Moreover, other local brands like Anta and Double Star are threatening Li Ning¡¦s market share in second and third tier cities. On the one hand, Li Ning should keep the current market territory. One the other hand, Li Ning should step into mega- and first tier cities and extend the market segment it is targeting to the population of age 25 to 34, to the portion that has a higher income and is also active in sports. In terms of brand positioning, Li Ning needs to put international fe... ... middle of paper ... ...rst tier cities to demonstrate Li Nings¡¦ brand value and deepen customer¡¦s impression. * Brand endorsement with international celebrities and top-ranking teams. Invite sports stars who are well-known to China customers. Withdraw from the sponsorship to Spanish national basket ball team and provincial field and track teams, which target much smaller group of audiences. *Sponsor sports and academic events in schools and universities, such as provincial sports meeting, nation-wide matches, and academic contest etc. * Set Li Ning outlets in college to enhance brand awareness among students 3.4 Market Research; In the dynamic sportswear market, fashion and innovation are critical to grasping young people attention. We have to track after-sale feedbacks from customers, process and react to customers¡¦ shifting taste and give input to R&D department for improvement.
Having a large market share can be very helpful because companies earn more money to produce more. They also create brand loyalties even if they increase their prices. However, companies who have large market shares often times do not provide a lot of innovation. These companies usually feel they don’t need to get ahead because they hold such a big share in the market. This sometimes hurts their brand because when new products enter the market with cool features, consumer are likely to be engaged and
Nike generally has the largest earnings and highest gains to its share holders among all their American competitors (excluding adidas which is a German corporation). Nikes rising popularity creates a major stock demand and trade because it is one of the best performing mega-cap stocks rising 700%. Nikes Profit margins has expanded to 45% which which gives them and opportunity to
Today we can see an increasing demand of luxury goods sold worldwide. A great deal of that is from emerging market such as china. It is a race amongst competitors to gain market share in those regions before others do. The challenge arises when it comes to properly marketing, distributing and selling in these new markets. To accomplish these feats Coach will have to turn to its resources and capabilities (see Appendix
Athletic clothing companies aggressively compete with one another to carry on their legacy and survive as a business. Consumers are constantly being persuaded by these companies to buy their brand athletic apparel. There are thousands of options, therefore the company with the all around best product often wins the sell. Nike dominates the athletic apparel market and continues, to expand its reaches. Nike’s potential to grow will allow the company to continually lead the industry, and perhaps be the greatest company ever created.
Lululemon Athletica is likely to have a growth rate of 381% with Under Armour coming second at 128.67 and finally Nike at 20.84%. Since the size of the market is expected to grow, revenues are also expected to follow suit. In order for Lululemon Athletica to become a market leader, it needs to engage in development and research to come up with new products (MarketWatch, 2013).
Nike’s brand strategy focalizes upon the “emotional branding based upon the story of heroism” (Newell 2014), which creates the most success for Nike as they relate the struggle to everyone and makes us want to prove strength for ourselves and win our inner battle with their products. This message plays powerfully in the market showing strength vs weakness and the battle between success and failure where nobody wants to fall under the weak category so they need to work and alternatively purchase Nike’s products to avoid this failure playing off their motivation. Surely the competition in the athletics market is high with competing products and value, which is why Nike is leading with their product innovations and inventions with material innovations such as Dri-Fit and inventions like their Fuelbands and trackers that cooperate with their Nike apparel. Nike is always targeting the professional athlete markets and the current athlete markets; however, Nike is also aggressively targeting consumers who aspire to be “Fit” and are even increasing their focus (by brand sector) on skateboarders, surfers and much of the youth population who may not be viewed as huge athletes but rather athletic individuals. Nike is very prominent in advertising their products to spark the message of increased athleticism in the motivation towards fitness. Advertising by Nike can be seen throughout many different mediums, including social media, internet, television broadcasting, and branding throughout stadiums, gyms as well as on a massive portion of the populations clothing. Because of the massive success of the brand Nike can have a slightly inflated price over that of their competitors with their association with quality in the mind of the consumer. Considering that Nike has made some effort to increase brand equity in companies like Apple
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
It has been found that the company should target the market aged 18 to 44, married, living in urban China, and purchasing for personal use. In order to address and leverage the current internal and external situation, the recommended marketing communications objectives have been set as follows:
...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well:
Shirley Ye, Sheng, and Yan Ma. "China Vs. The United States: Market Connections And Trade Relations." International Journal Of China Marketing 2.1 (2011): 45-57. Business Source Complete. Web. 13 Dec. 2013.
Just as it says in the text, Nike is predestined to be the front-runner in the industry. After all, the company is named after the Greek goddess of victory!
Nike inc. which all the other companies are trying to be like. Some changes are
According to global industry analyst, the world sports clothing industry is anticipated to exceed $126 billion by 2015, Because of more active lifestyle, with older demographics and woman becoming more energetic, this drives the market. The entire sports clothing industry is highly filled with so many brands like Nike, Adidas, Umbro and Reebook all over the world competing, even the high leading brands have to work twice has hard in other to keep their share in the market because most of this small firm have quality products and also a very fine marketing style which has increased competing style in the industry. All over the world people demand more versatile wear, which indicates that’s retailers continue to produce new style of sports clothing for both men and women.
a. Grow the business by constantly adding more stores around the world: The Company has had tremendous success in opening stores around the world. It has applied its global strategy effectively and has enjoyed increase in sales from global operations.
...ing in unique outcomes in different geographic areas” (Guo, 2013). Guo gives an example of Starbucks in China (2013). In China, Starbucks stores have incorporated Chinese cultural design elements despite the corporations branding is based on Americana (Guo, 2013).