Research on Sports Apparel Brand Strategic Planning Under the
Background of Big Data: Li Ning Company as an Example
Xingyuan Dai
School of Management, Shanghai University of Engineering Science, Shanghai, China
Keywords: Big Data, Internet Marketing, Digital Marketing, Strategic Planning, SWOT Analysis.
Abstract: In this paper, Li Ning Company as an example, for its development of appropriate marketing strategy, the
second part is the general profile of Li Ning Company; Thirdly, it analyzes the marketing environment
facing Li Ning Company and the opportunities and challenges brought by the novel coronavirus epidemic.
The fourth part plans the digital marketing platform of Li Ning Company according to ESP model and "5S"
strategy method. The fifth part is to design the effective search engine marketing plan for Li Ning Company;
The sixth part combines the development of big data and artificial intelligence technology to talk about how
Li Ning Company will realize data-driven big data marketing in the future.
1 INTRODUCTION
Since the outbreak of COVID-19 in 2020, the virus
has severely tested the world's societies and
economies. According to estimates from the world
bank, the impact of COVID-19 resulted in a global
recession unlike anything seen in 80 years. This
recession has had huge ripple effects across the
globe, bringing the global economy to an
unprecedented halt, resulting in higher
unemployment, lower retail spending and lower
consumer spending. As a traditional livelihood
industry, textile and clothing industry has played an
important role in expanding the market, balancing
foreign exchange payments and creating
employment. Considering that the impact of the
novel coronavirus will continue for some time in the
future, it is very important to assess its impact on the
garment and textile industry and use big data to help
enterprises develop their own online marketing
strategies to ensure recovery from the crisis (Wang
and Sindy, 2022).
Figure 1: Marketing digital decision model.
36
Dai, X.
Research on Sports Apparel Brand Strategic Planning Under the Background of Big Data: Li Ning Company as an Example.
DOI: 10.5220/0012023100003620
In Proceedings of the 4th International Conference on Economic Management and Model Engineering (ICEMME 2022), pages 36-41
ISBN: 978-989-758-636-1
Copyright
c
2023 by SCITEPRESS Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
2 OVERVIEW OF LI NING
COMPANY
Li Ning Company was founded in 1990, its
headquarters is located in Beijing Zhongguancun
Park, after more than 30 years of exhibition, Li Ning
has gradually become a well-known clothing brand
at home and abroad. In 2008, Li Ning had more than
6,000 offline stores. After several years of
development, the company's revenue exceeded 10
billion yuan in 2010, surpassing the old German
company Adidas. But then inventory build-up, peer
competition and marketing choices led to a series of
store closures over the next few years. Until 2015,
Li Ning Company changed from offline retail and
equipment supply to "Internet + sports life
experience", and returned to the domestic first-tier
brand with the marketing strategy of multi-brand,
multi-variety, online and offline multi-channel
operation, thus enhancing brand awareness and
brand recognition.
Figure 2: Annual turnover of Li Ning Company.
The ARIMA model is a short-term predictive
analysis method with high accuracy based on the
correlation measures in different periods of the
sequence. This method was proposed by American
scholar Box and British statistician Jenkins in 1976,
so it is also called Box-Jenkins model. In the
ARIMA model, the future value of a variable can be
expressed as a linear function of several past values
and random errors.
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In which B is backwards operator,
t
ε
is the
random disturbance or random error of every period,
d is difference order, p and q are respectively
autoregressive and moving average order number,
order the X
t
is the observed value of every period (t
= 1, 2...k).
The establishment of ARIMA time series model
can be summarized into three stages, that is,
sequence stabilization, model recognition, parameter
estimation and model diagnosis. Through the
repeated processing of these three stages, an
"optimal" model for forecasting is finally
determined.
Finally, we use this model to forecast Li Ning's
annual revenue and profit in the next three years.
Figure 3: Li Ning Company Annual Revenue Forecast
(million Yuan).
Figure 4: Li Ning Company Annual Profit Forecast
(million Yuan).
0
10
20
30
billion yuan
Research on Sports Apparel Brand Strategic Planning Under the Background of Big Data: Li Ning Company as an Example
37
3 SWOT ANALYSIS OF LI NING
COMPANY'S MARKETING
ENVIRONMENT
Table 1: SWOT analysis of Li Ning Company.
The internal
environment
Internal
strengths
Internal
weaknesses
●Sponsorship of
domestic events
●The
application of
Internet
platform
●Offline stores
are competing
with online sales
●The quality
and training of
talent is
inadequate
The external
environment
External
opportunity
External threats
●The garment
industry has
improved its
level of
innovation
●The
development of
e-commerce
platforms
●Competition
from other
well-known
brands
●Consumer
loyalty to other
brands
3.1 Analysis of Internal Strengths
Li Ning has relied on its sponsorship of major and
domestic competitions to increase its exposure
through its long-standing partnership with the
national team and the CBA league. As the exclusive
sponsor of the CBA, Li Ning, whose jerseys and
sneakers are worn by players and coaches, has
gained exposure in recent years as the number of
spectators has grown.
At present, the rapid popularization of the
Internet has changed the traditional communication
mode. Li Ning can directly obtain the consumer
demand of users by using the public account
platform, Weibo and a series of mobile terminal
apps, providing new ideas for the development of
the brand in the future.
3.2 Analysis of Internal Weaknesses
Under the background of Internet +, all major
clothing brands carry out multi-channel marketing
through offline physical stores and online sales, and
all brands bloom. If they do not have core
competitiveness that is different from other brands,
they will be severely impacted (Luo, Ge, Chen and
Li, 2021). At the same time, the manufacturing and
sales talents involved in the garment industry need
to keep pace with The Times, but Li Ning's training
mechanism for such talents is not perfect, resulting
in a shortage of talent reserve.
3.3 Analysis of External Opportunity
With the rapid development of the Internet and the
constant iteration of information technology, Li
Ning's development offers opportunities. With the
introduction of related policies such as Made in
China 2025, the sports apparel industry in China is
constantly transforming, and the ability of
independent innovation has been significantly
improved. The development of e-commerce
platform provides an important opportunity for Li
Ning's product sales, which makes the sales revenue
of products on the online platform increase
significantly.
3.4 Analysis of External Threats
For the sports apparel industry, well-known
international brands such as Adidas, Puma and Nike
are at the top end of the global value chain, and
consumers have high loyalty to these brands. By
contrast, Li Ning rose late. Although its brand has
attracted attention at home and abroad, customers
are more willing to choose Adidas and Under
Armour for the same price.
4 LI NING COMPANY'S DIGITAL
MARKETING PLATFORM
PLANNING BASED ON ESP
MODEL
4.1 Environment (E)
With the rapid development of the Internet, the
traditional media is gradually occupied by the
network media.
According to the China Economic Annual Report
2020 released in January 2021, the total annual retail
sales of consumer goods in China was 39,981 billion
yuan, down 3.9% year on year, but the online sales
continued to grow. The annual online retail sales in
2020 was 11,7601 billion yuan, up 10.9% year on
year, among which the online retail sales of physical
goods were 9,759 billion yuan. Increased by 14.8%,
accounting for 24.9% of the total retail sales of
ICEMME 2022 - The International Conference on Economic Management and Model Engineering
38
consumer goods, an increase of 4.2% over the
previous year. Among them, the retail sales of
clothing was 1,236.5 billion yuan, up 6.6 percent
year on year.
4.2 Strategy (S)
With the development of the network, Li Ning brand
can obtain users' information feedback at a low cost,
so that the effect of commercial activities can be
convenient and effective. At the same time, because
the network makes the information filterless and
consumer trust and other factors have a certain
interference to the brand. Li Ning brand should
adjust its strategy to achieve its marketing objectives
by integrating various factors.
Table 2: Digital Marketing Strategy.
category strategy
The electronic
commerce
Official websites can
cooperate directly with
e-commerce platforms
Social media
It is active on multiple
platforms
Strengthen user interaction
and communication, timely
integration of social media
Mobile terminals
It also released its own
branded mobile apps for
Android and iOS systems
The network game
Inject your own brand
elements into your game
and extend your brand
4.3 Performance (P)
Through digital marketing, Li Ning can build its
own digital world, understand the brand's potential
customers and their needs through multi-platform
marketing, and then prioritize the design content that
is beneficial and attractive to the customers. The
effects of digital marketing not only directly affect
the size and growth rate of users, business
contributions and interactive activities, but also the
negative feedback from users cannot be ignored. Li
Ning should take a rational attitude to the negative
evaluation of consumers and make a timely
response.
5 SEARCH ENGINE SOLUTION
Search engine optimization refers to the use of
search engine working mechanism or algorithm,
visit a specific website, systematically improve the
quantity and quality of traffic (Silvia and Claudio,
2021). Search engine optimization (SEO) is a
technique that applies to optimizing websites. Users
enter the keywords they want to know to search and
get what they want with the help of search engines.
Search engines have been widely used in the past
few decades. After literature reading, we sorted out
the index list for analyzing webpage ranking
(Andrew and Vaughan, 2022), as shown in Table 3.
Table 3: Page ranking indicators.
indicators description
Page rank
The metric used by Google Search to
rank websites in its search results
Page authority
Permissions that represent a specific
page or URL on a scale of 1-100
Domain
authority
Represents the authoritative 1-100
scale of a domain name, which is a
measure of the strength of the
predicted ranking of domain names,
including subdomains
MozRank
Represents the popularity of global
links on a scale of 1 to 10
MozTrust
Represents Moz's global Link trust
score.It measures link trust and
checks for reliable sources to receive
links
Citation flow
A metric provided by MajesticSEO,
which uses the number of websites
linked to it, Majesticseo, to predict
how influential a web page is. The
more links to the site, the higher the
CF value
Trust flow
Another index, on cover,
MajesticSEO, predicts the
trustworthiness of web
pages.Trustflow is computed using
the distance of backlinks from
trusted and old domains
Alexa rank
Alexarank refers to the use of user
visits and page views to calculate
Alexa traffic ranking
URL rating
It is a metric given by Ahref to
measure the strength of a backlink or
target webpage, usually on a
logarithmic scale of 1-100
Domain rating
Ahref calculates the logarithmic
scale of a web page's backlink
profile, from 1-100
Ahref rank Ahref's rankings compare backlinks
Research on Sports Apparel Brand Strategic Planning Under the Background of Big Data: Li Ning Company as an Example
39
to websites. It is calculated using
size and domain name rating
Google index
The number of specific pages that
Google is able to crawl or index on a
website
Social shares
Page sharing on Facebook, twitter,
google plus and other social media
platforms
Domain age
It is a metric that gives the
approximate age of a website and is
often used to rank web pages on
search engines
5.1 The Theme Should Be Clear and
the Content Should Be Rich
Before updating the official website of Li Ning, it is
necessary to set a clear main body and target, and
position the website according to the characteristics
of the campaign and the brand. Meanwhile, Li Ning,
as the leader of domestic sportswear brands, needs
to update its own brand culture in time.
5.2 Website Links Should Have High
Popularity
Search engines judge the quality of a site by the
number of external links and the quality of the
linked site. Therefore, Li Ning Company should
strengthen its own internal construction, improve the
connection of the wide degree, the production of
high-quality web pages.
5.3 Be Specific in Your Key Words
The keyword setting of the website is very important.
If a website wants to be retrieved by more users, it
needs to be more rigorous in the formulation of
keywords, not to blindly pursue hot words, but to
combine with its own brand and culture.
5.4 the Site Structure Should Be Clear
In the design of the website organization, the
framework should be avoided as much as possible,
and the use of FLASH should be minimized in the
design of navigation entries. At the same time, since
the root directory is the fastest to retrieve, usually to
the site's home page file set there. In addition, the
site's subdirectory Settings should not be too much,
the detailed directory Settings should not exceed
four levels.
6 BIG DATA MARKETING
Big data is carried out in the mode of peer-to-peer
advertising. The core of big data is to find the target
audience from the massive data and accurately
deliver information to them, so as to maximize the
communication effect. There are three advertising
modes based on precision marketing, which are
more suitable for Li Ning brand.
The first form is to directly communicate with
third party advertising agencies to develop
personalized and accurate marketing solutions for
the brand and build a brand database. To be specific,
the two parties first determine the target of
advertising through negotiation and choose the
media platform suitable for the brand. Secondly,
according to the keywords such as gender,
occupation, region and interest, the purchase
preferences of different groups under different
media platforms are identified, and consumers are
divided into three levels: understanding,
participation and purchase (Wei, 2022). Design
marketing content for different levels of users and
push personalized advertising display.
The second form is Dsp based precision
marketing. Before advertising, brand managers can
entrust advertising agencies to carry out creative
planning according to the different online and
offline marketing methods. In terms of online and
offline activities, consumers with a certain number
of online activities can exchange some gifts in
offline stores.
The third form is to carry out multimedia
marketing. In WeChat marketing, there should be a
link to other platforms, so that consumers can jump
to the product details page while seeing the
advertising pattern, so that they can browse and buy
products conveniently, time-saving and efficiently.
Figure 5: Factors influencing online shopping behavior.
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