University of Southern California



Li-NingAndrew xx, Robbie xx, and Claire xxTable of ContentsExecutive Summary3 Overview of Li-Ning4The Strategy of Signing NBA Stars4Balance Theory and the Way of Wade Campaign4Li-Ning during the 2008 Olympic Games5Current Social Media Practices5Potential Challenges of E-Communication 5The Nike Example5RecommendationsCreate Social Media Profiles6Hire Professionals to Maintain Social Media Presence 7Social Media Contests7Be Innovative7The Social Business World 8Works Cited9Executive SummaryLi-NingCompany OverviewLi-Ning is a Beijing-based footwear and apparel brand that currently has the second largest market share in China. Looking to expand its brand beyond the Chinese market, Li-Ning signed NBA superstar Dwyane Wade. The deal was one of the biggest endorsement deals in sports history. Since then, Wade and Li-Ning has been working closely on their product, “Way of Wade”. Although Wade has helped Li-Ning in exposing the brand name, they will still need to increase their social media activity to improve their global reputation.Current Communication Strategies Li-Ning marketing strategy is currently focused on sport stars like NBA superstar Dwyane Wade. With this strategy Li-Ning is hoping that consumers will follow social psychologist Fritz Heider’s Balance Theory. Based on the Balance Theory consumers would buy Li-Ning products solely because their favorite athletes support the product. Overall celebrity endorsement is not an effective marketing strategy on its own. In order to become a global brand Li-Ning needs to combine its celebrity endorsers with a strong social media presence. Currently Li-Ning’s social media presence is basically non-existent. Recommendations We recommend that Li-Ning create social media sites in their target markets. These social networking sites would include American networking sites like Facebook, Instagram, and Twitter, as well as international networking sites like Russia’s VKontakte and China’s QQ.Once the networking sites are created we recommend that Li-Ning hire a staff to update and maintain the new networking sites. In addition to day-to-day maintenance of the sites the social media team would also be responsible for developing innovate social media strategies to encourage consumer participation. We are confident that an innovate social media presence would allow Li-Ning to become a leader in the athletic apparel industry. Overview of Li-NingLi-Ning is an innovative sports company that brings products to athletes to help them excel in their respective sport. Li-Ning, the founder of the company, is a world-class gymnast with success in all areas of the sport. He has received 106 gold medals, two World Cup Championships, and has had major success at the Olympics. As Li-Ning retired, his passion drove him to start a company that produces high quality footwear, apparel, accessories, and sports equipment. Li-Ning also sponsors many world-class athletes ranging from professional handball players to NBA superstar, Dwyane Wade. The Strategy of Signing NBA StarsIn 2012, Li-Ning signed basketball phenomenon Dwyane Wade in order to expand their brand globally. The endorsement deal with the NBA champion was marked as one of the biggest in history. Signing Dwyane Wade was not the company’s first attempt to sign a big-name NBA Star. In 2006 they signed Shaquille O’Neal (Shaq), a 3-times Final MVP and Hall-of-Famer. Unfortunately, the deal with Shaq did not give Li-Ning the international exposure it desired. Six years following the failed marketing campaign with Shaq, Li-Ning decided to start a new campaign with a younger NBA star. Dwyane Wade was different from Shaq’s because Wade was in the prime of his NBA career we he joined Li-Ning, while Shaq was signed in the final years of his career. Li-Ning sees Dwyane Wade as the missing link that will allow them to be a leader in the global athletic apparel market, however they need to go beyond signing sports stars to their brand. Li-Ning needs to learn from their failed campaign with Shaq. They need to realize that signing NBA players will not automatically make them a competitor in the global athletic apparel marketBalance Theory and the Way of Wade CampaignLi-Ning’s endorsement of Dwyane Wade was an insightful marketing strategy, because the use of celebrity endorsers has proven to be an effective. According to tests conducted by the Association of Consumer Research and Business Professors Dr. John C. Mowen and Dr. Stephen W. Brown, the success of celebrity endorsement is attributed to social psychologist Fritz Heider’s Balance Theory. Balance Theory, or “P-O-X” theory, is the idea that if subject P likes subject O and subject X likes subject P, then subject X will also like subject O. To apply Heider’s Theory to Li-Ning, the Dwyane Wade fan would be subject X, Dwyane Wade would be subject P, and the product would be subject O. In other words, if Dwayne Wade likes a pair of shoes then his fans will want the same shoes. Following the signing of Dwyane Wade, Li-Ning developed the “Way of Wade” marketing campaign based upon Heider’s Balance Theory. The goal of the Chinese oriented campaign was to use Dwyane Wade’s popularity to sell sneakers. To do so, the shoes were advertised to exemplify the dynamic skills of the American basketball star. One example from the campaign was a television commercial that showed Wade in an office handpicking each feature of Li-Ning shoes. The commercial was an obvious exaggeration, however, it would cause consumers to associate Dwyane Wade with Li-Ning sneakers, and therefore, attract more potential customers.Li-Ning during the 2008 Olympic GamesIn addition to the “Way of Wade” campaign, Li-Ning also used the 2008 Olympic Games to improve their marketing and public relation strategies. They improved their image internationally during the Olympic games when Li-Ning lit the Olympic torch while wearing a Li Ning jacket. The ceremony where Li-Ning lit the torch, and consequently the Li-Ning jacket, was seen by millions of people worldwide. In 2008 they also promoted their brand domestically by outfitting the broadcasters on a popular Chinese sports channel. These strategies received millions of views, which resulted in the increase in their company’s share price by three percent.Current Social Media PracticesLi-Ning’s social networking presence is limited because the Chinese government forbids the use of Western social networking sites like Facebook and Instagram. Li-Ning does have a Twitter account, however the company does not update it frequently. The account is only updated four or five times a month. Li-Ning’s lack of social media presence has hindered the company’s ability to expand into the global market. Potential Challenges of E-CommunicationAs society has evolved and business strategy has become more innovative, there has been a rapid increase in the use of Internet communication. This “paperless” strategy has been advantageous to many organizations because it has allowed them to compete in the global market. However, this new technological era also presents challenges. Li-Ning needs to be aware of these challenges before they can implement our recommendations. ??????In a world where virtual communication has become the predominant form of interaction, messages sometimes do not come across as they were intended. For example, when one tweets, Facebooks or Instagrams, it is very hard to get the point across with the correct emotion. In virtual and written communication one cannot use body language or tone to help convey ones message. In virtual communication the message is drastically altered by a reader’s interpretation. This is dangerous because it limits the control an organization has over their message. To combat this inevitable consequence of virtual communication, organizations need to make sure that the people responsible for maintaining their virtual presence release clear and concise messages.?The permanency of virtual communication can also be detrimental to an organization. Due to the fact that virtual communication is permanent organizations need to be careful that no potentially harmful information is released. Once an organization posts something on a social networking site they can never get rid of it. One message can have a drastic impact on an organization’s future. Even though there are some challenges that will result from the use of virtual communication, Li-Ning needs to be able to use virtual communication if they want to become an international brand. The Nike ExampleIn order to establish itself in the international market Li-Ning needs to update its social media strategies. To do so we recommend that Li-Ning follow the example of the world’s largest sportswear company, Nike. Nike is the leader in the athletic apparel industry because of its innovate social media strategy. Nike’s goal is to personally connect with each customer. In an interview with Mashable reporter Erica Swallow, Nike’s Global Digital Brand and Innovation Director Jesse Stollak said, “We've evolved to a focus on conversations and engaging customers to participate as opposed to using new media in traditional ways.” Establishing global connections has contributed to Nike’s $44.36 billion value. In order for Li-Ning to achieve Nike level success, the company needs to connect with as many people as possible; this connection starts with a strong social media presence.Currently Li-Ning’s social media activity is limited; their only social media profile is a Twitter account with ten thousand followers. Li-Ning contributes its lack of involvement in traditional western social platforms, like Instagram and Facebook, with the Chinese government’s Internet regulation policies. However, in spite of the regulations western brands, like Nike, have been able to use alternate social media platforms to communicate with international markets. Today Nike is involved in of hundreds of virtual communities and engages over 50 million people worldwide.RecommendationsI. Create Social Media ProfilesTo transform Li-Ning into a globally recognizable brand the company should create social media profiles on the main social networking sites in their target markets. For example in the United States and other western nations Facebook and Instagram are popular networking sites, while in nations like China and Russia sites like QQ and VKontakte are used. Once the profiles are created Li-Ning will easily attract followers because Dwyane Wade is the face of their organization. As one of the most popular players in the NBA Wade has 4.28 million followers on Twitter, 3 million followers on Instagram, and 2.5 million Facebook fans. By having a wide social media presence Li-Ning will be in continuous contact with millions of potential customers at a relatively low cost.II. Hire Professionals to Maintain Social Media Presence The process of establishing an effective web presence does not end with creating social media profiles. In order to be successful Li-Ning will need to employ people to maintain and update the sites. Possible updates would include announcements of future releases as well as sales promotions. Offering unique promotions to social media followers would drastically increase Li-Ning’s followers because the majority of people want to save money. In addition to increasing the number of followers, sales promotions would also attract new customers who would contribute to Li-Ning’s global expansion. ??III. Social Media ContestsAnother way Li-Ning could use social media to attract new customers/expand its global brand would be to have social media based contests. In 2012 Nike/Jordan’s #RiseAbove Instagram contest had 327 million participants. For this contest Nike and their spokesman Michael Jordan asked people to post pictures that described how basketball helped them “rise above” challenges. Nike then chose winning photos to be included in an advertisement. Using their spokesman Dwyane Wade Li-Ning could easily conduct a similar contest. By giving ordinary people the opportunity to star in an international campaign there would be excitement around the brand. The more positive discussion there is about Li-Ning, the quicker Li-Ning will become a universally recognizable brand.IV. Be Innovative The final recommendation we have for Li-Ning is that as they expand they need to come up with innovative social media strategies. Nike has been the leader in the athletic apparel industry for decades because they never stop reinventing themselves. As Nike Director Jesse Stollak says, “The rise of social media provides new ways to do things. The future will have new tools and methods and Nike will continue to push the edges.” Li-Ning needs to follow this philosophy. Li-Ning needs to constantly come up with new ways to use social media and the Internet to connect with their customers in an ever-changing global community.The Social Business World Li-Ning needs to follow the 21st century business trend where organizations are communicating and connecting virtually. According to a survey conducted by the Social Media Examiner, the world’s largest social media magazine, over 97% of marketers use social media to advertise their businesses. The surveyed marketers claimed that their heavy use of social media allowed them to establish genuine connections with their customers around the world. Li-Ning needs to take advantage of the fact that social media gives companies the ability to connect with people across the world. If Li-Ning follows our recommendations they will transform into the world-renowned brand that they aspire to be. Works Cited Association for Consumer Research. Association for Consumer Research, n.d. Web. 27 Apr. 2014. <, Michael A. "2013 Social Media Marketing Industry Report." Social Media Examiner. Social Media Examiner, 2013. Web. 27 Apr. 2014. <, Erica. "How Nike Outruns the Social Media Competition." Mashable. Mashable, 22 Sept. 2011. Web. 27 Apr. 2014. <;."Way of Wade." Way of Wade. Li-Ning, n.d. Web. 27 Apr. 2014. <;. ................
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