STRATEGIC RECOMMENDATION

2015

PLAN

I/ Li-Ning & Market introduction II/ From Target to Concept III/ Strategic Recommendations

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I/ Li-ning & Market Introduction

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

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LI-NING Shift in the identity in 2010:

让改变发⽣生 for non Chinese speakers

Make the change

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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

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SWOT

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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

MARKET

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1,5 1,4 0

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Nike Adidas Reebok Under Armour

Brand Value in Billion $

Forbes: http://www.forbes.com/pictures/mlm45eleik/forbes-fab-40-the-most-valuable-brands-in-sports-2013-3/

MAPPING

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PROBLEMATIC

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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?

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II/ From Target to Concept

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

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TARGET

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Main target: Y Gen •  15-25 yo •  Boys & Girls •  Enjoying sports •  Fickle, no brand loyalty to a brand

TARGET

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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

TARGET

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Secondary target: Teens •  15-19 yo •  Boys & Girls •  Fashion conscious •  Entertainment focus, Serie Addicts

TARGET

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Influencers: •  Vloggers •  Bloggers •  Influencers on Social Media (Twitter,

Instagram…) •  Journalists in People, Lifestyle, Entertaining,

Teens magazines

COMPETITORS Nike = Health / Lifestyle Recently Jordans = Lifestyle

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Adidas = Both Street Style / Sports conscious

Miley Cyrus 23 – Jordan shoes

Foot locker Snoop Dog

CONCEPT

Federate younger people through the idea of

COMMUNITY

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Bringing your friends together to share sporty moments

POSITIONING

Li-Ning, Bringing friends together

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A new look at competition, See it through your friends’ eyes

RTB

It’s more than a game, or a competition!

It’s the story of people doing things, sharing success and

feeling emotions together.

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III/ Strategic Recommendation

STRATEGIC RECOMMENDATION

•  Build a digital ecosystem –  improve traffic through different platforms –  increase the time spend inside the brand

channels of communication

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Global Advice

•  Invest in Social media to support the community & invite people to create UGC

STRATEGIC RECOMMENDATION

•  Facilitate every interaction with digital channels through links, buttons and Twitter/Facebook Connects

•  Aggregate information into a Database, & consolidate them to push personalized offers

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Global Advice

STRATEGIC RECOMMENDATION

•  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

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Global Advice

STRATEGIC RECOMMENDATION

•  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

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Global Advice

ECOSYSTEM

Website Thorough reworking on every digital channels

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Brand Website not e-commerce li-ning.luhta.com/

Corporate Website

lining.com/‎

Dedicated Website

wayofwade.com/

ECOSYSTEM

The ecosystem needs

CONSISTENCY

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Core platform:

Brand Website

E-commerce

Corporate

Website

A Blog Provide content & demonstrate

expertise

Dedicated website

RENAMING

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Li-ning.luhta.com Lining.com/‎ Wayofwade.com ‎

Lining.com Lining-business.com Wayofwade.com

BRAND CORPORATE DEDICATED

Blog Lining-blog.com

1 use per channel

WHAT’S INSIDE / BRAND SITE

Personal Account > Facebook/Twitter connect

Good quality pictures of products + descriptions + consumer reviews

Special offers

Share buttons

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Core platform

E- commerce

Simple platform

Web responsive

WHAT’S INSIDE / BLOG

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

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CONTENT COMMUNITY

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

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SOCIAL MEDIA ECHO

SOCIAL MEDIA

•  Main plateform : #Lining •  Hashtag •  Livetweet •  RT •  The central network to activate the others channels

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SOCIAL MEDIA

•  Broadcasting products explanation & athletes interviews •  Shoppable video

•  Comment inside videos

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SOCIAL MEDIA

Will relay & display Photo & Video: •  News •  Events •  People wearing Products •  Contests > Incentive “Serie” Relay #Lining Aggregating UGC

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SOCIAL MEDIA

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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

SOCIAL MEDIA

Will relay: •  special offers •  Promotions •  Contests Relay #Lining Aggregating UGC

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BLOGGER/VLOGGER

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Keep the world informed about company’s latest products, projects and achievements •  Press Releases •  Send free products •  Try it •  Create content •  Impulse WOM

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INCENTIVE

INCENTIVE

Contest: Play against Wade Principle: •  Invite friends to create a team •  Share it •  Invite other friends to Like •  Reward: Tournament against Dwyane Wade

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Contest ONLINE

Tournament OFFLINE

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

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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

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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

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MEDIA RELATED

TALK SHOW

•  Shazam your Talk show

•  Principle: Scan with your shazam app the display

and redirect you on the e-commerce website

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PRODUCT PLACEMENT

•  Teens TV shows:

+ Mini series youtube

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IN-STORE

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

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PLANNING

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PLANNING

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BUDGET

BUDGET  Website    $90  000    Blog    $40  000    Social  Media  Presence    $190  000    App  co-­‐branding    $13  000    >  Play  against  Dwyane  Wade    $150  000    >  Act  in  your  favorite  Serie    $40  000    >  Sponsor  my  team    $50  000    Street  Marke=ng    $700  000    Shazam  >  Talk  shows    $200  000    Product  Placement    $100  000    RP  Blogger/Vlogger    $30  000    POS+PRINT    $400  000    TOTAL    $2  003  000    

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Thanks for your attention Q&A

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