Report Lining new brand strategy(李宁新品牌战略报告)总结 计划 汇报 设计

1、Report Li-Ning new brand strategyBy Dec. 22, 2011 8AbstractThis report analyses the new brand strategy launched by LiNing Company in June 2010.The purpose of this report is to provide a direction of LiNing Company with the information through assessing the effectiveness of the new brand campaign. Th

2、e results of the new brand strategy will be show after analysis .And the recommendation will be made to help establishing a new image of the company based on the assessment and analysis.Executive summaryThe report examines the market reaction to the new brand strategy of Li-Ning Company. The purpose

3、 of this report is to provide the board of directors with information necessary for assessing the effectiveness of the new brand campaign.In June 2010, Li-Ning Company unveils its new brand image and changes its slogan into “make the change”.We analyze the financial returns and performance of Li-Nin

4、gs stock price in capital market. We arrive at a conclusion that it is a bad strategy and should be make the change. Recommendations are given for the board of directors in planning the appropriate strategy. We suggest that elaborate market research should be making to find the true attention of cus

5、tomer combining qualitative analysis and quantitative study.ContentsThe development of LiNing1Lining brand startup stage(19901992)1Domestic high speed development stage (1993 1996)1Strategic adjustment stage (1997 1998)1Renaissance stage(1999 2001)2Establish Brand System Stage (2002 2009)2Brand Remo

6、deling Stage (2010 )3Introduction of the new brand strategy4Analysis of the new brand strategy5Conclusion and recommendation8The development of LiNingLining brand startup stage(19901992) Lining Company was launched in August 1990.At the same time, Lining became the only company that provided sports

7、equipments for the Chinese delegation in 11th Asian games. In 1991, Lining sports goods company formally established in Guangdong. In the end of 1992, three branches established in Beijing, Guangdong. Because Chinas sports goods market was not industrialized at that time , Lining could satisfy the p

8、ublic demand. And Li Ning s star effect ,all these make Lining brand succeed in the early 90s.Domestic high speed development stage (1993 1996)In 1993, Lining brand took the lead to establish franchise monopoly marketing system in China; In September 1994, Lining sports company set up; By the end of

9、 1995, Lining Group was founded; In early 1996, the Groups headquarter moved from Guangdong to Beijing. And from 1993 to 1996 , Lining brands sales income increased in more than 100% a year. In 1996, its total income is 670 million yuan which made a history record.Strategic adjustment stage (1997 19

10、98)Li ning brand succeed in 1997 but the success ended abruptly, due to the impact of the Asian financial crisis and China's economic deflation, Lining brand also got into trouble. After several years, Linings sales income has been hovering around 700 million and market position also declined ye

11、ar by year, reform is imperative. In 1998, Lining brand had built the China's largest design center of clothing and shoes product in Foshan Guangdong, and hired experts in capital operations in order to adjust business strategy timely, strengthen the system brand management . Renaissance stage(1

12、999 2001)Lining brand intended to improve and perfect the various resources and management system of the enterprise, and paid high attention to the "brand internationalization". In 1999, Lining brand established strategic cooperation with the top brands in different areas, which became the

13、 first Chinese sports product enterprise to implement ERP (international); In 2000,Lining expanded the franchise dealers in Spain, Greece, France, the Czech republic, Belgium, Bulgaria, Italy and South America 99 countries and regions; In July 2001, Lining signed Italy top designers, in October, Lin

14、ings first overseas image store opened in Spanish. A series of development strategy aimed to make Lining more professional and international).Establish Brand System Stage (2002 2009)In 2002, Li Ning brand established a stable cooperation relation with international well-known enterprises, such as du

15、pont and 3M. Furthermore, it developed more cooperation forms with South Korea and Frances enterprises. In 2003, Li Ning was exceeded by Nike for the first time; it had been leading the domestic sports market before that. In 2004, it was exceeded by Adidas once again. In July 2005, Li Ning made coop

16、eration with Algle that is the French outdoor sports brand, Li Ning Company gains 50 years brand management right of Algle brand in China. Li Ning created Z-DO brand in 2007. In November 2007, Li Ning used $300 million to purchase 57.5% of Hong Shuangxis stock rights. In July 2008, Li Ning get 20 ye

17、ars of Lottos exclusive franchise right in China by using no less than 934 million. In July 2009, Li Ning acquired KaiSheng with 165 million Yuan.Brand Remodeling Stage (2010 )Li Ning and its CEO Zhang ZhiYong officially released its brand new logo- "人" word alternative "L" pinyi

18、n logos and "everything is possible" propaganda also turned into " Make The Change" on June 30, 2010. The new Logos inspiration comes from the "Li Ning cross" that Li Ning created the pommel horse action; the new slogan has more colorful of individual character. Li Ning

19、 Company hopes that this will get rid of suspect that is similar with Nike and Adidas in logo and slogan, more important is it wants to reconstruct their brand image in the new generation of consumers by this way. As if overnight, the gentle, trustworthy and actively Li Ning had gone, and the cool,

20、fashion, internationalization and personalized became its label.Fang ShiWei, as Li Nings chief market officer since 2007, joined the system study of "replacement logo" when he take up this job at his first working day. Because sports goods core consumer is the people of 14 to 45 years old,

21、 however Li Ning brands actual consumption consumer is nearly 35 to 40 years old. Li Ning brand need to let the new generation of consumers enjoy its products. So it planed change its logo and slogan to reach its target.Figure: LiNings turnover (20012010)Introduction of the new brand strategyThe dev

22、elopment of LiNing Company is introduced on the above. This report mainly examines the new brand campaign of the lining company. Unveil on June 30, therere now new logo and slogan which replace the old. Almost overnight in cities and towns, Li-Nings new brand campaign has saturated the media: TV sta

23、tions, the internet and retail displays.However, there is more content in this branding campaign. The company is changing its target consumer base, from cost-conscious thirty-and forty something to whats known in China as “after-90s”. Li-Ning wants to become a smart, humorous, forthright, sincere, c

24、urious and creative young man. It want to model these image as its new brand image.As the industry of sport goods goes into its second stage, which is characterized by more mature and stable growth. The competition becomes increasingly fierce. To Li-Ning Company, this stage means great opportunities

25、 and huge risks. Li-Ning Company had a long fast growth in the past 20 year. It now has 8000 stores nationwide, which plan to increase to 10000 in 2013 and in 2010 its total revenue comes to 9479 million Yuan. However, the company has great disadvantages which have become an obstacle to its further

26、development. The most urgent weakness is the image of its brand. When people mention Li-Ning, they tend to link it to an old and unfashionable product. To solve this problem the company planed to reshape its brand threes years ago. And in June it unveiled its boldest brand makeover since LiNing, a f

27、ormer gymnastics star, launched the sporting goods company in 1990.Analysis of the new brand strategyTo examine the effect of the new brand strategy of the company, we analyze the financial statement of the company to find the result of the rebrand. We put some revenue index in the following sheet.T

28、able: Revenue (2007 2011) unite: millionyearfirst half year revenueIncrease (%)second half year revenueyear revenue20071909-244043492008306160.3362966902009405232.4433583872010450511.24974947920114289-4.8-As we can see from the picture in the fist half year of 2011, the revenue of the company decrea

29、sed by -4.8%. The negative growth is the first time from its listed in HK 2006.Figure: First Half Year Revenue Increase And in the first half of 2011 its net margin decreased 49.5% compared to first half of 2010.The new brand strategy didnt bring the company with anticipated growth but lead to great

30、 declination.In the following, we want to check what the investor reaction is in the capital market. It can give us signals to estimate the effectiveness of the new brand strategy. Figure: Daily stock price of Li-Ning(2331.HK)From the day company launched the new brand strategy, the stock price of L

31、i-Ning declines stably. From 25.8 HKD in April 30, 2010 to 7.09 HKD Nov 13, 2011, the stock price decreased 72.52%. The performance in capital market reveals what investors assess the prospect of the company. It is ease to get a conclusion that investors dont identify with the new brand strategy.Conclusion and recommendationAnalyzing the financial performance after its new brand strategy provided us with the information to assess the effectiveness of the new brand campaign. We can