Li Ning: Brand Growth and Excellence in China
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Case Code: BSTR207 Case Length: 14 Pages Period: 1989-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.300 Organization: Li Ning Industry: Sports and Sporting Goods Equipment Countries: China Themes: Marketing Strategies, Brand Management, Distribution Strategies |
Abstract Case Intro 1 Case Intro 2 Excerpts
"The market landscape is polarized between Li Ning as the volume leader, while Nike and Adidas are the value leaders."
- Nene Leung, Founder of Champion Projects sports consultancy, 2002
"Li Ning is a leading sports brand in China's rapidly growing sports industry and we are delighted to join forces with them to promote the sport of basketball leading up to the 2008 Beijing Olympics."
- Andrew Messick, Senior Vice President, NBA International, 2005
Introduction
When Li Ning Company Limited (LNCL) entered into a three-year marketing partnership with NBA Properties Inc. on January 18, 2005, it became the first sports goods enterprise in China to enter into such an alliance. Under the agreement, LNCL had the right to use the title Official Sponsor of NBA with logos and names owned by NBA in its advertisements. LNCL could also sign up key NBA stars and sponsor NBA-related events and programs for promotional purposes. NBA Properties would provide timeslots to LNCL to air advertisements during its regular season games telecasts by China Central Television. The deal was a strategic one as it was expected to help consolidate and boost the Li Ning brand in Tier I cities like Shanghai, Beijing, and Guangzhou.
In line with this initiative, in January 2006, it was announced that Damon Jones (Jones), a basketball star player for the Cleveland Cavaliers would sign an endorsement deal with LNCL. Jones was the first NBA player to endorse sports shoes made by a Chinese company. Commenting on his decision to endorse LNCL's products, Jones said, "Li-Ning is a company focused on performance with strong capacities for marketing, research and development. Wearing Asian-styled, Li-Ning products makes me different from others on the court and I am honored to be the first to wear the Li-Ning brand in NBA games." LNCL, one of the leading marketers of sports goods in China, had established a strong presence in the domestic market against competition from global giants like Nike International Inc. (Nike) and Adidas-Salomon AG (Adidas).
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