* I agree to receive communications from Attest. This community lets members share their LEGO creations images and offer proposals for new LEGO Ideas sets that members vote on for the company to produce. They became convinced that if all they offered was another box of bricks, they would become a commodity, Robertson said. The purpose of this report is to analyze the Lego's turnaround and business model in light of its competitive position from approximately 2003 - 2013 . Its always been a towering giant in the toy industry but in the last couple of years,the company has had to radically rethink its brand growth strategy to compete with challengers in the space and digital offerings. Step 3 - Marketing Plan. This was widely seen as an attempt to appease an increasingly online and electronics-focused target audience. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories. 2015-2023 ContactPigeon. It is not priced very heavily also since it wants the customers to be able to afford high-quality toys and the middle-class families would also be able to buy them. The toys are exported throughout the world so that the toys are made more accessible to the people. 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. Get answers and chat with the team. Inventive. Unless otherwise indicated, any images used on this site are licensed for use by Attest (on an irrevocable, worldwide, non-exclusive and royalty free basis) via either: Lego Case Study: Marketing Audit and SWOT Analysis - Edubirdie We have to innovate across the whole experience from product to marketing, the whole value chain, she said. Hiring business consultants to advise it on its performance, LEGO started moving away from its core toy brick business. Course 5 of 7 in the Strategic Leadership and Management Specialization. LEGO responded in 1999 by refocusing its innovation efforts on revolutionary products that would reinvent the nature of play. Following are the products or services in its marketing mix which is offered to all customers: Lego blocks are the most popular product by the company. . Being ahead of these trends will allow us to inspire future generations of children, Christiansen told Retail Insight Network. 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. The study examines how interest towards toys turns into playful and productive activities at adult age, through actual manipulation of three types of contemporary playthings: dolls, soft toys and action figures. Hence this concludes the Lego marketing strategy and marketing mix. It would put money into opening stores, while shipping less product to retailers in the US and Europe. As they say in the Lego Movie, "Everything is awesome. Privacy Policy. It provides complete integration same goals, same agenda, the ability to solve problems very quickly and much greater learning across the organisation, she told Marketing Week. Browse marketing strategy and 4Ps analysis of more brands similar to Lego. 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. Some adults adore Lego toys as well, assembling their collections of characters from movies, games, etc. 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. Lego: Focusing the marketing strategy to grow the business If youre looking for brand growth strategy examples that you can borrow and adapt, Legos shows you how scaling back can sometimes be beneficial. STP marketing: The Segmentation, Targeting, Positioning model Get immediate access to our 10 page workbook to help you define your Core Purpose, Vision, and Core Values, along with resources for Brand Archetypes, Tone of Voice, Messaging, and more! Its important to nurture a culture thats able to shift gears if traditional methods don't deliver desired results. 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. updates! I really enjoyed the case studies in this course and the education on various frameworks felt like I could immediately use the material in real world scenarios. Photographs by Matthew Septimus. Lego builds its brand in China with experiences | WARC "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 . August 29, 2007. The online community has over 10 million members, offering an effective way of increasing brand awareness by enabling younger audiences to engage through social media. Transform your best business thinking into an actionable, shareable, growth-oriented guide. Copyright 2015 - 2019, Map & Fire | Handcrafted in Los Angeles. The world-famous toymaker, the LEGO Group, called upon Vivaldi to help solidify its brand strategy and build out the brand identity model for the iconic brand. This 20-month MBA program equips experienced executives to enhance their impact on their organizations and the world. This article has been researched & authored by the Content & Research Team. It also underlines how vital it is to go after international expansion to secure long-term growth (alongside research to back up your plans). The toy industry is no child's play. You need to be dating your customer, not fighting your competitor.. Become a lumbering beast, and its not easy to change course when you see the landscape changing. Rather than relying on outside franchises to drive growth, like it did in the early 2000s with Star Wars and HarryPotter, LEGO decided to create its own series of blockbuster movies. With the younger Kristiansen at the helm, LEGO branched out into the Technic brand a more sophisticated building system to attract older children and launched the first mini figure and fantasy action play sets, fueling 15 years of growth during which the company doubled in size every five years. A nother positioning strategy utilized by the brand to pass a message of visibility to its consumers is the generic strategy where brand Lego used a PR agency to achieve this objective. 2758 Words12 Pages. With almost 300 million kids under the age of 18 in 2023, the Chinese toy market is extremely profitable, and reached a revenue of more than 18.9 billion USD in 2022. In this course you will learn how organizations create, capture, and maintain value. By staying true to the brand identity it established in its inception and merging it with modern marketing techniques, LEGO has managed to keep at the forefront of the competition. Sales of its most profitable lines fluctuated based on movie release dates, which LEGO did not control.The company did well in the years when movies premiered, but sales plunged in ears when no new movies were produced.As a result, as then-COO Poul Plougmann explained, LEGO saw weak demand for its toys in 2003 and was essentially left without a profitable product line in that year. And its not just the analysts who are praising the brand for the second year in a row, UK consumers have named Lego as their favourite brand. Building the LEGO Brand: Brick by Brick|Marketing|Case Study|Case Studies Case Introduction - Lego Group - Module 4: Strategic Positioning and Many of these new products included motorized and electronic elements; however, these frequently proved to be more expensive to make than their selling price. In 2020, the LEGO Foundation committed$24 million in educational aidfor schools, foundations, and educational programs in multiple countries. In 2004 the Lego group was under the leadership of CEO Kjeld Kirk Kristiansen, the company faced a large number of problems including posting a loss for the year of DKK 1,800m despite a group turnover of DKK 6,295m. When Lego products keep flying off the shelf, retailers see very little need to stop low-end knockoffs. Smart. The companys long term growth strategy includes a push into India and it has announced plans to open an office in Mumbai. At the same time, LEGO knows what marketing strategies to always continue, from its educational partnerships and parent-safe brand, and how to use this to develop better customer relationships. To reveal the advanced rules section go to Edit additional conditions, 7. 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%. Lego has also offered toys based on popular characters as a part of its physical toys. LEGO Architecture series is currently in the growth stage. The Strategic Positioning and Strategic Renewal module brings together the internal and external aspects of strategic analysis to formulate an overall strategy for the firm. These blocks are used to interconnect each other and can be used to construct various shapes, designs etc. In the 21st century, LEGO remains a thriving, highly adaptable company. It started as a toy manufacturing company but it had also become a great marketer. Product: LEGO Architecture Product Life Cycle The life cycle of LEGO Architecture products is normally 1 year but it depends on specific products and it varies from half a year to 10 years. As a distinct player, LEGO followed a brand strategy which was disruptive, innovative, market-changing, and category-killing. 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. Outside of work, Joyce loves reading, traveling and exploring her new found home in the ancient city of Athens. Seven LEGO sets are sold every second in some parts of the world. Lego is present in around 130 retail stores around the world, most of which are present in the U.S. Retail stores are not the only places that carry the selection of Lego toys but you can buy them at movie theatres, amusement parks and popular departmental stores and toy stores. So whats next for Lego? 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. It can be used to construct buildings, houses, vehicles, human figures. How did it manage to turnaround its business and emerge as one of the worlds leading toy companies? Bring a business perspective to your technical and quantitative expertise with a bachelors degree in management, business analytics, or finance. Strategic Management, Business Model, Strategic Thinking, Business Strategy. It also included decisions on commercial activities that Lego Factory would discontinue. It produces clothes for children until the age of twelve. The company was on the brink of bankruptcy. To put it simply: Throughout the everyday life of an average kid raised in advanced countries of the world, its parents, its teachers, and its friends will encourage it to play with LEGO. If they tried to do both, how should they avoid the danger of getting stuck in the middle? It gives great value to the customer so as to gain market share and create repeat purchase. Strategic Management and Lego | Case Study Template It is manufactured by The Lego Group, Denmark. Non-degree programs for senior executives and high-potential managers. 4.1.Brand Positioning Since its inception, LEGO has focused on the development of the brand beyond the familiar logo brand in order to guarantee LEGO quality and authenticity and to . Other sections offer homeschool and distance learning resources for children learning during the pandemic. But innovations run their course., From its inception in the 1930s to its brush with bankruptcy in 2003 and its subsequent turnaround, LEGO tried every approach in the book to managing innovation, some resulting in spectacular success and others in great failure, said Robertson, author of Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry.. or any other third parties such as Shutterstock, iStock and Getty Images. A non-degree, customizable program for mid-career professionals. 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. It had started off as stackable wooden blocks which then converted to plastic. But the brick was still necessary, because thats what customers expected of the brand. As Head of LEGO Retail, Claus Flyger Pejstrup, said: Our LEGO stores are a great tool for building brand awareness and emotional connection with our fans.. Lego products the whole idea of creative play experiences is something that resonates strongly with Chinese consumers..
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