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The Difficult Brand Revitalization of Li-Ning

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The Difficult Brand Revitalization of Li-Ning
Marketing Case Study: The Difficult Brand Revitalization of LI-NING
Introduction
The case study explores how LI-NING brand which has been the No.1 domestic sporting goods brand was revitalized to satisfy the development objective of the company and to meet the challenge of the changing market. This report first introduces the company and its brands. Following this section, SWOT model is applied to analyze the situation faced to the company before the brand revitalization. The specific comparison of the brand STP strategy and 4P tactic before and after the brand revitalization is in the next section followed by the evaluation of this event. The report concludes with the proposition that instead of simply revitalizing the brand, the company should differently operate two brands to maintain the dominance as the top of sporting goods industry.

Introducing LI-NING Co., Ltd. and Its Brands
LI-NING Co., Ltd. commenced business in 1989. The “LI-NING” trademark was also registered in the same year. The company sponsored the Chinese delegation for Barcelona, Atlanta, Sydney and Athens Olympics in 1992, 1996, 2000 and 2004. It was officially listed on the Main Board of the Hong Kong Stock Exchange in 2004, becoming the first Chinese mainland sporting goods company listed in Hong Kong. In 2005, LI-NING Brand was awards as My Favorite China Brand. The company adopts a multi-brand business development strategy. In addition to LI-NING brand, it also operates the other 5 brands, including Z-do, Double Happiness, Kason, lotto, AIGLE. The data in Figure 1 clearly indicates that LI-NING is the core brand of the company since its revenue accounted for more than 90% of the total revenue of the company between 2006 and 2010. Figure 1: The Percentage of Revenue by Brand (From 2006 to 2010)

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100.00% 90.00% 80.00% 99.60% 70.00% 60.00% 50.00% 97.60% 95% 91.7% 92.1% Other Brands LI-NING Brand

Year
2006 2007 2008
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