However, unlike its ventures into a more technologically-dominated market in the early 2000s, this time around the central heroes both on-screen and on store shelves remained its basic bricks and mini figures. I hope you enjoyed learning about Lego Group and analyzing the company's generic strategies. 2. Their Chinese market share was only 2.8%, leaving enormous potential for growth. LEGO learned that in a new digital landscape it was no longer enough to offer a box of plastic bricks the brick had become a commodity. The LEGO Groups logo was designed in 1973 and has not been changed since. Lego's broad international export strategy is to target countries where there is a growing but still relatively underserved middle class. part of the brand's wider strategy to help people understand the creative value of play by instilling a "fresh creative culture" in children. Pursuing multiple, complementary innovations that harmonize to create something is much better than any one key alone.. After all, the practice easily imitable and if the cost get too out of line, it creates an opportunity for low-end competitors to enter the market. That creates a lot of hunger in the organisation, she concludes. Opening its third-largest global factory (in the city of Jiaxing) positioned Lego to supply products not only for the Chinese market, but other Asian markets too, including Japan and South Korea. Lego brand strategy / positioning case study If you want to get access to Lego brand strategy analysis including brand essence, brand values, brand character, brand archetype and expert commentary register or log in. So what changed? Engage with an activity that combines creativity, problem solving, and a tactile experience, Gets kids engaged with a toy that encourages creativity with non-digital play, Teaches important lessons around problem solving, following directions, and spatial relations, Offers fun connections and integrations with many other brands and properties to spark the imagination. In my opinion, this is a good strategy because by increasing . The company's name is an abbreviation of the Danish words 'leg godt' which together translate to 'play well.'According to Forbes, it was ranked as the world's 91st most valuable company in 2018, with a valuation of nearly $7.8 billion. Though painful, these actions streamlined a company which had lost its 'dynamism' and entrepreneurial feel during the preceding decade. Lego's new brand growth strategy paid off - they returned to growth again in 2018, with profits and sales both increasing by 4%. We have added complexity into the organisation, which now makes it harder for us to grow further. Knudstorp said this pruning back would prepare the company to grow back stronger: We will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children. Based on our platforms data, during 2020 weve seen that a benefit-driven exit-intent pop up on the checkout process had a median conversion rate of 1.47%. 1. It would put money into opening stores, while shipping less product to retailers in the US and Europe. LEGO has a great expression for why they listen to kids when developing new toys, said Robertson. A 2017 report byBrand Finance noted that LEGOs cross-generational appeal and the creative freedom it gives children were reasons why it became the worlds most valuable toy company, outperforming rivals Mattel and Hasbro. The LEGO Group (TLG) is a toy production company established in 1932 and headquartered in Billund, Denmark. This mix of time-honored ideals and cutting-edge marketing enables them to adjust to societal changes and grow even through challenging times. Learn from Attests experts in the Consumer Research Academy. However, with little experience inhospitality, operating these establishments proved to be a logistic and financial strain on the firm, and loss-making continued. The company produces toys for children that are consisted of interlocked colorful plastic bricks that make an array of gears, mini-figures, and many other pieces. LEGO uses its digital platform to provide each segment of its consumer audience with an integrated customer experience. In this Lego SWOT analysis for 2021, you will see what makes this Danish company one of the biggest toy companies in the world. The world-famous LEGO brick has both propelled the company to its current success, and has laid the foundations for future growth. 3.Toys face continuous threat by the advent of electronic alternatives. Featuring the same, iconic brick design that hasn't changed in 50 years, LEGO is not a toy brand; it depicts the childhood of a major proportion of the world's children - being constructed, brick by brick. The legacy started in 1949. According to CMO Julia Goldin, its been key to improving efficiency and effectiveness, not just in marketing but across the business as a whole. Moreover, if someone looks at its surroundings and its (social) networks as well, there is a tremendous amount of LEGO-related user-generated content which also continuously validates that this toy is, maybe, one of the healthiest, most educative, and most beneficial addictions of its life. Although the LEGO brick remains their trademark product, the company expanded into new ways of making toys and marketing during the 20th century. That means Goldins role encompasses both product and marketing, which she describes as a really big shift for the company. Thanks to the LEGO Groups willingness to enter new marketplaces, diversify its merchandise, and embrace social media marketing, their product lines are better suited to adapt in beneficial ways. This growth mainly came from a healthy balance of going 'back to the basics' while simultaneously looking towards the future. Lego may be the building blocks of the toy industry, but it hasn't always had a smooth ride. Get access to bite-sized brand and marketing strategy content right on your phone. LEGO began to evolve product development practices to support design thinking principles, empowering experts to come up with ideas for new products based on that critical customer input. And most importantly what that leads to is they are more agile and responsive to the marketplace.. "The LEGO brand is one of the most recognized and reputable brands in the world and the protection of IPRs is extremely important to us . So, we strongly believe that a brand with so much content and such brand prestige as LEGO, will surely achieve an even higher conversion rate than 1.47%. The number of parts required to manufacture these newlines rose rapidlyfrom 6,000 to more than 12,000which proved to be logistically difficult and expensive. To say it in another way, Phillip Kotler, marketing author and professor, defined brand position as "the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market." What do you want your customers to think of when they hear . The toys can also be bought online from several sites such as Amazon, eBay etc. The promotional and advertising strategy in the Lego marketing strategy is as follows: Lego was made popular not just through the conventional media but also through unique marketing strategies. Last Step! Following is the distribution strategy in the Lego marketing mix: Lego is headquartered in Denmark and has its major production units in the UK, US, Singapore, and China. STP marketing as a planning tool. AsWhartons business analysis journal reported, they reduced losses and set the stage for a new period of rapid growth. World-famous landmarks like the Eiffel Tower and The Statue of Liberty could be replicated in miniature forms using LEGOs colorful bricks. Video Games by Lego Media International Limited include Lego Island, Star Wars, Indiana Jones, Batman, and Marvel Superheroes more recent being a game based on The Lego Movie. It had started off as stackable wooden blocks which then converted to plastic. LEGO's products are based on a strong culture of creativity and have a high-quality brick system. A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers. Answer. Get a 10 page workbook on Purpose, Vision, and Values. While providing millions of dollars in income, LEGO came to depend on the fate of other companiesin this case Hollywood blockbustersto drive its own growth. Cookies help us deliver the best experience on our website. Some adults adore Lego toys as well, assembling their collections of characters from movies, games, etc. The second was to get a long-term strategy in place which sharply defined Lego Factory's positioning, target market, growth options, marketing mix, and revenue and cost projections. It can be easy to oversimplify the product and product description as a fun day at a Lego-themed park for the family, but this is not necessarily the best marketing approach to . CEO Niels Christiansen announced that 80 new stores would be launched in China during 2019, adding to the existing 60, and giving it a presence in 35 cities. There are several theme parks under the Lego Group which are spread across various countries like UK, Denmark, Dubai, Japan, USA etc. LEGOthe Danish toy manufactureris one of those companies with a solid foundation. LOOKING AHEAD. Much of this success is due to the LEGO marketing strategy, which embraces digitalization and emphasizes knowing its customer base. Lego Brand Strategy. LEGOs turnaround from its existential crisis in 2003 is remarkable. Need help with the Attest platform? Board games by Lego Games include some popular games like Minotaurus, Creationary & Ramses Pyramid. LEGO also decided to branch out of toy making and started expanding its theme park network globally. A strong brand image helps the company maintain its success and leadership position. But in general, you position your brand so that your target market views it as: top-tier; . In fact, it is difficult to find any construction-related toy which is not, or does not relate to, LEGO. It started as a toy manufacturing company but it had also become a great marketer. Lego reported its first drop in sales and profits in more than a decade in 2017. In 2017, journalist Maia WeinstocksWomen of NASALEGO idea gained the necessary 10,000 votes from supporters, was produced, and became a top-selling product on Amazon. In this article, well take a close look at the tactics and tools LEGO uses to market its products successfully, even during the current pandemic. The toys are exported throughout the world so that the toys are made more accessible to the people. . LEGOs Facebook page has well over 13 million followers and regularly updates the page with photos and videos of new LEGO releases and innovative creations. During our tests, we didnt detect such a tactic at Legos website. Lego, well known for its toys based on interlocking bricks, was founded in 1932 in a carpenter's small workshop in Denmark.. Ole Kirk Kristiansen, founder of Lego, started by making simple wooden toys. Check out 6 ways to break through the barriers to international expansion. Introduction On 4th September 2014, LEGO Group announced the news that the company is achieving 11 percent increase in sales for the first half of year 2014, surpasses fellow toy manufacturer Mattel. Heres our assessment for what we liked bestand what we didnt. Pexels In essence, brand positioning is the core of every digital marketing strategy. Brand positioning is the space your brand and products hold in the market and in the minds of your customers. And despite how devastating the COVID-19 pandemic has been for many in the toy industries, LEGOs salesrose 14%in the first half of 2020 compared to the same period in 2019, with its operating profit rising 11% to $622 million.

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