Marketing objectives of Li Ning Company Limited
Team 2, Class 1
S: 1) Lining initially acquired badminton and sports accessories of Kason. Because badminton has the largest number of participants in china now, the market is very easy to score and occupation----the geographical advantage.
2) Its specialization and professional r&d team play a great advantages to design and produce clothes, which help dominate the market quickly.
3) Products had affinity, and entered the market earlier, so more easily accepted by
consumers. What’s more, Li ning himself is a silent advertisement and intangible assets of the company. Lastly, the relationship with the supplier is good as well as supply system is stable. 4) The factors like: progressively international, large-scale event funding and internationalization of the market, it all help Li Ning company enhance brand awareness, and help to enter the international market.
W: 1) The competitors have better awareness in nation and abroad. On the other hand, the company still had some qualities problems.
2) Production line is too long, no clear market positioning, market segmentation is fuzzy. O: 1) Due to the GDP maintain high speed growth, the sport industry is also continued to develop, the market share occupied larger and larger year by year.
2) Li ning was chosen two forms of franchising and dealer, so it has a geographical advantage in development of marketing networks.
T: 1) The foreign companies like Nike and Adidas had increasing market share. Their growth rate exceeded the growth rate of market share. Domestic manufacturers raised in succession.
2) Li Ning has been to give people the impression of leisure products, hard to
locate in high-end sports brand, and it is more difficult to change.
2.2 Portfolio analysis
HIGH Question Stars marks
Market/ Badminton Industry
growth MED rate Cash cows
10 X 1 X 0.1 X
Relative market share
The reasons for BCG model
Badminton: the badminton of Li Ning Company has high profit growth. Li Ning profit in 2008 is 6.5 times of Yonex, and it has been keep 30% of annual market growth rate.
Clothes: It takes a more and more important role in this business area. So, its market share was climbing up.
Shoes: It has similar situation with clothe. It occupied a little bit high in relative market share, but due to its low price and cheaper quality than competitors, so only brought low benefit to Li Ning