This action might not be possible to undo. Are you sure you want to continue?
The fashion channel
TFC- the fashion channel here is devicing a marketing strategy to improve its revenue and the positioning itself better than its competitiors .i.e Lifestyle and CNN which are also telecasting fashion related programs and taking the share of the ad revenure pie. Regarding the positioning TFC has to decide. The company now targets the two levers of revenue that is the increased viewership rating and the increased advertising pricing. They work out strategies so as to achieve these objectives.
Problem Statement and Issues:
The Issues here are as follows: 1.
The company wants to build and strengthen its brand for which following components it targets at: 1. 2. 3. 4. 5. 6. 7. 8. 9. product differeciation, Pricing, positioning, brand recognition, advertising, endorsements, distribution, capacity building, Product segmentation, customer targeting, using various communicating media with their customers
Product differeciation: According to Abel Wu, VP, marketing strategy aimed at product differeciation, this can be an effective idea whereby the name of Li- Ning is equally established in the minds of the customers as that of the international counterparts that is Nike and adidass owing to the competitive advantage of the company. Distribution: The Company in 2006 had 3005 franchise through which it reached almost all major places in the people republic of china. It had 111 directly managed retail store and 257 Concession counter. The distribution was spread over 8 regions geographically. Resources were well managed and as the result their inventory which was earlier for 112 days came to 86 days. Its target was two and three tier cities. Brand building and strategic alliances: For its Competitive advantage utilisation and therefore linkage with the International Brands to help successfully enter the Chinese markets. Example of Strategic alliance of 50 years with the French iconic brand for rubber boots is stated.
energetic and dynamic image among the potential customers in china: They came up with an L shaped logo like Squirrel tail. Spanish basket ball team. Sponsorship: Sponsored the NBA. Emerging sports of tennis and fitness was targeting females of the larger cities. The oriental theme is advocated bit he fact that it is perceived as more cool as it has international touch to it and the example where the Chinese kids find the same Mulan character story cool when played by the Disney characters. the TV commercial were shown with a runners movement and Chinese Kung Fu and basketball depicted together and also NBA player Damor Jones featuring in a commercial. Branding: Establishing a young. the Pricing position which 30-40% lower than global players but maintains its standards high above the local players by 50%. Strategy for new and untapped market: If we see the large competition on global scale was the result of the increasing awareness about sporting goods. Positioning: With an increasing global marketing. weight and support system but also to have a continuous improvisation in the brand thereafter as the establishment being of their very own firms and in their homeland and adapting to the Chinese customers need. This can bring about an analysis that the there is more inclination of the buyer of shoes section if today’s generation o age group 28-32 in the two and three tier cities towards the globally recognised brand. The company also researched with university collaboration the Chinese feet size and the best inner soul to suit it.2012H149216 Vinay Amdhare Targeting customers: There was an increasing purchasing power among the Chinese consumer by 25% and also it is seen that there is also an increase in the global brand Nike s market share. demand for recognised brand among the customer will increase. Celebrity endorsements: Since 2005 and 2006 Cleveland’s Demon . USA. Pricing: The most competitive advantage for Li Ning needs to be maintained i. Also the case mentions that the active – sports range like shoes is creating a difference. along with the international sponsorships it also sponsored few regional provincial teams like the ones from Shandong and Ningxia. Along with the prising position there was a need to make the brand being recognised at par with its competitors equally fashionable and stylish. it simply indicates the need of the brand recognition and brand value need. this gives a chance to Li Ning to capture the market share of the unpopular local brands as well as the upcoming local brands like Speedo. New Balance. Capacity Building: Investing in R&D in china not only helped the firm to gain a competitive advantage due to new designs and technological improvements like cushioning.e. Advertising and endorsements: Advertising and TV commercial had a significant Chinese youth so that people could relate to them. Sudan field national team. and Arena.
They got endorsed Li Ning from superstar Shaquille O’Neal a five year deal. In this case of Li Ning it should ‘ THINK GLOBAL AND ACT LOCAL’ it should also portray itself as a global brand through its TV commercials and at the same time help the Chinese consumers to relate the same in Chinese context. It should tap its tier 3 and 4 cities and the active age group of 16-28 years and maintain its pricing position at the same time reducing its other overhead costs. wants of customers and deliver a Chinese tailored products. 4. 5. 3. the R&D should focus on sensing changes in demand. . For a global image it should carry on with its sponsorship and take a better share in it unlike the one missed in the Beijing Olympics 2008 to Nike. Capacity building in china not only will reduce its cost but also help continuous improvements by sensing changes in the Chinese markets. it can procure the international brands get into strategic alliances with them as well use its capacity of R&D to tailor it to Chinese needs and target its customers through its chain of 3300 stores. It should carry on with its product differeciation and internationalisation strategy simultaneously.2012H149216 Vinay Amdhare Jones was seen wearing Li Ning shoes. It should focus on Commercials and brand image and make it alive among the Chinese target customers through it well spread network of 3300 stores. 2. Commercials Sponsorships to games Star endorsements Logo and brand image 3300 stores (acted like bill boards) Li Ning can take the advantage of being the very own Chinese brand and focus on image building in global as well as giving it a touch in a Chinese context. Decisions and recommended actions: Li Ning used the following communication media to communicate with its target customer: 1.