Lining's Brand Positioning Reinvented

after market After investigation and numerous discussions, Lining The company still decides to challenge Mr. Philip Kotler's advice: "it will be extremely difficult to change it after setting up a position." In June 30, 2010, the Li Ning Co held a press conference at the Yizhuang production base in Beijing, announcing that it used the old Lining LN logo for many years to officially replace it as the "Lining cross action" new logo. At the same time, Li Ning Co launched the new advertising "make the change" to occupy the TV, subway, network and other media rapidly, and the lightning typeface of "90's Lining" hit the eyeballs of consumers.

The world is changing all the time. enterprise Only by changing at any time can we advance with the times. But has Li Ning Co really arrived at the time when we must abandon the "old map" to find the new continent? Where is the opportunity? Where is the new compass? Will its followers follow their search for the new continent?

The market is "stuck up".

Perhaps the new advertising language illustrates the original intention of Li Ning Co's strategic adjustment: "I do not like to be unconventional, but I just don't agree with it." Self complacency is bound to be eliminated by the market. The severe situation facing Li Ning Co is a major reason why it has to change.

Starting from "everything is possible", Lining gradually developed into a leader in the local sporting goods industry in China. However, when the market leader has to be ready to be surpassed by competitors. The front is Nike and Adidas, the two largest international giants, followed by unremitting pursuit of Anta, XTEP and other Chinese local enterprises challengers. The medium and high end market positioning space that Li Ning Co built and relied on has been squeezed unprecedentedly. "If I don't have the money, I'll buy cheaper Anta. If I have money, why not buy the international brand Nike and Adidas?" The Li Ning Co is suffering from enormous competition pressure. "Change" is the inevitable strategic option for it.

Market pressure is on the one hand, but more is the market opportunity to be grasped. Statistics show that the annual expenditure on sports shoes for Chinese middle school students and college students is equivalent to that of American middle school students and college students. China's young consumer groups represented by post-90s are growing up. As a sporting goods brand, it is of great significance for Li Ning Co to seize this part of the huge consumer market.

At the same time, Li Ning Co continues to be challenged and criticized by "logo plagiarism Nike and slogan plagiarism Adidas". After skimming over the sky at the Beijing Olympic Games, Lining must catch up with the momentum and make use of the Olympic marketing's surplus heat to make his brand occupy a larger share in the domestic market and expand the international market. Li Ning Co's 2009 annual report shows that its annual operating income is RMB 8 billion 387 million yuan, while Adidas's sales in mainland China are about 7 billion yuan. Li Ning Co has taken a firm foothold in the Chinese mainland market, which is a good opportunity for international operation. Perhaps the Chinese consumers do not care about the Li Ning Co's plagiarism, but will foreign consumers accept this "copied version" made in China?

In the strategic planning of Li Ning Co in the next ten years, 2009 ~2013 was the preparatory stage for internationalization. In 2014, ~2018 was the stage of full internationalization, and the goal was to enter the top five of the world sports brand and become the first Chinese sports brand. However, according to the general "internationalization" standard (overseas market contribution to the company's business is above 20%), Li Ning Co's overseas contribution is less than 2%.

Li Ning Co CEO Zhang Zhiyong admits that the change in brand positioning is also due to the consideration of international operation: "first we should create an international brand and then expand the international market." This approach is different from the low dumping method of some enterprises. We hope to increase the added value of the brand first. "

Therefore, Li Ning Co has new logo, new slogan and new positioning. Li Ning Co has made a major operation on its own: the brand gene, target population, product positioning, brand connotation and product development system have made corresponding adjustments. Lining is indeed "make a big change", but can consumers accept it? As Mr. Philip Kotler pointed out, "it will be extremely difficult to change it after setting up a position." Almost all operators know the fact that no one is more stubborn than the consumer. They don't know how much money they spend in order to change consumers' awareness of their brand's market by advertising. "Once people's ideas are formed, they can hardly be changed. With the meagre power of advertising, we can't do that. Changing people's minds is the way to advertising disaster." "Positioning," a book says.

Then, is Li Ning Co going to kill nirvana or seek death?

Questioning "Lining after 90"

Li Ning Co's confidence in the success of its transformation may come from its changing tradition.

From its inception to the present, the Li Ning Co has undergone several changes in positioning. Initially, Li Ning Co has not focused on sporting goods, and the opportunity driven business model has led to the pursuit of profit growth opportunities as much as possible. Correspondingly, it is the slogan of the Li Ning Co, which is "outstanding from the true colors" and "leaving the wonderful to the next generation". In 2002, Lining repositioned herself and focused on the sporting goods industry. In September of that year, he launched the household slogan, "anything is possible," and was formally promoted in May 2003.

After this brand remolding, Lining brand is gradually becoming familiar to Chinese consumers. From 2004 to 2008, Li Ning Co's revenue and earnings maintained an annual growth rate of over 30%. According to the market survey report made by Li Ning Co in 2006 to ~2007, the actual consumption population of Lining brand is relatively large, and the proportion of people aged 35~40 is more than half. Obviously, for sporting goods brands, 14~25 year old young people are more ideal consumer groups.

Therefore, Li Ning Co is facing such a dilemma: the group that accounts for more than half of the consumers is not the consumer group that they want. Abandoning them will inevitably cause great losses to Li Ning Co. With them, how to attract young people of 14~25 years old and make the brand younger is a problem to be solved.

However, under the enormous pressure of competition, brand younger is the inevitable choice of Li Ning Co. Therefore, after the appeal of brand younger, 90 became the new goal pursued by Li Ning Co. The brand of Li Ning Co is even younger than that of the post-80s consumer group. "The new logo is designed to accommodate young consumers, especially after 90." Li Ning Co CEO Zhang Zhiyong once explained.

In fact, after Li Ning Co's strategic adjustment, its experts and consumers questioned precisely its brand positioning after the 1990s. "After 90" Lining highlighted the specific consumer groups, so experts and consumers accused Li Ning Co of forgetting other consumer groups. Some consumers said: "sport is not age, Li Ning Co should not draw the age limit, otherwise it will hurt 70 and 80 after pleasing the post-90s." And industry experts pointed out: "if this set of changes failed to please the post-90s, Li Ning Co would be afraid of losing their wives and soldiers."

In determining the target consumer group, the main problem facing Li Ning Co is whether the new positioning will make the Lining brand lose its original consumer group (after occupying more than half of the 70). Will it buy it after 90 years? Will the target consumers be defined as a means of market segmentation in a certain year? Will the Lining brand grow together with the 90s, or will the target consumer group target 00 after growing up after 90? Is Li Ning Co ready to launch the brand positioning of "00 after Lining" in 10 years? {page_break}

Unknown future

In fact, in the process of marketing, the adjustment of any part of products, prices and channels can be regarded as a major project. As the fundamental of marketing, changing brand positioning has a wider scope, deeper degree and longer duration. And marketing 4P is always positioning service, and it must change with the change of brand positioning. Aside from the question of whether the brand positioning is accurate, Li Ning Co should let the positioning of "post-90s Lining" play a role and occupy the minds of consumers. What we need to do is not so simple as changing slogans and symbols. It is reported that Li Ning Co has already completed a series of adjustments including organizational structure, product system, sales system and market system, and replacing logo and slogan is only the last step of Lining's brand remodeling activities.

"We need to build brand personality so that our brand can truly become a truly emotional premium brand in the eyes of consumers, and become a fashionable, cool sports brand with global vision." Zhang Zhiyong described the future of Li Ning Co in the future.

However, will Li Ning Co be lost in its own planning when it claims that it does not need others to arrange routes?

If we want to go down this determined Road, the Li Ning Co must face a great change.

First of all, from the perspective of positioning, Li Ning Co must further study the post-90s, understand their consumption preferences, contact media, buying habits, and communication channels. Compared with the 1980s, the post-90s have a more publicized consumption proposition and unique consumption characteristics. They have more disposable income and pay more attention to brand names, but the brand has a high frequency of replacement. They like to try new things, advocate new consumption, have distinct personality, have advanced consumption consciousness, and have the characteristics of "constantly changing". So, how Li Ning Co aims at the essential characteristics of the post-90s to carry out brand promotion and achieve good results is a major challenge for them.

Secondly, Li Ning Co must design and produce products that can attract more post-90s consumers, which is based on the insight of the 90's consumer preferences.

Once again, enter the high-end sporting goods market, throw away the Chinese brands such as Anta after the tail, and close to the international brand, Lining has to reconsider the layout of his channel and terminal image. As of December 31, 2009, Li Ning Co has 8156 retail outlets in the Chinese market. It is reported that the old logo of Lining sporting goods has already started a substantial reduction in sales promotion. According to the plan, Li Ning Co will open 70 sixth generation flagship stores in Beijing, Shanghai, Guangzhou and Shenzhen this year, which means that it will have more intense battle with Nike and Adidas in the first tier market.

Finally, perhaps the most important thing is corporate culture. Corporate culture has always been a short board for Chinese local enterprises. Lining recently told the media: "the brand is advancing along with the times, so the brand must be kept alive." I think my value in the company is not simply to create the fashion of the post-90s, but more importantly, I want to contribute to the spirit of the company's sports spirit.

In fact, Lining's words only reached the red spot of the bull's eye.

The first step has already taken place, the bow did not return to the arrow, "after 90 Lining" arrow can hit the target, in fact, the most critical is Li Ning Co's market operation and brand promotion ability.

In the face of the big market test, what kind of answer can Li Ning Co produce? At least, it is unknown at the moment.