In other words, Lego has a 'monopoly' on the sense of touching a Lego style toy brick where nothing can compete with Lego and nothing can replace Lego. Lego, when it started off, consisted of just plastic bricks and small figurines which you could use to make small structures. As explained by LEGO, the company does rigorous research to finalize the prices of different pieces in the set and cost of the new unique moulds if they are required and also the cost of licensing new characters from other brands and companies (Help Topics - Customer Service . If youre looking for brand growth strategy examples that you can borrow and adapt, Legos shows you how scaling back can sometimes be beneficial. How marketing built Lego into the world's favorite toy brand. Find out how to get started with this free guide. Shops create experiences, promoting the brand in un-Legoed parts of the world, including China, it said in a comment piece. LEGO`s Strategy. Define the appear triggers of your exit intent pop up, Tip: You can create different exit intent pop up for returning or new visitors, 6. The world-famous LEGO brick has both propelled the company to its current success, and has laid the foundations for future growth. The popularity of Lego fan-based . LEGOs oversized workforce was significantly reduced. She also likes cake. 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. LEGOland, the companys collection of theme parks, was sold for some $460 million. An entrepreneurial atmosphere was fostered by LEGOs Future Lab, which brought together designers from around the world and encouraged them to experiment and, through a trial-and-error approach, create toys that were truly sought-after. Eventually, the traditional plastic LEGO brick was patented in 1958, offering a timeless design that endures to this day. Following from its success in China, Lego is looking to . One lesson the Legos growth strategy teaches us is how important it is to stay agile. 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. It has a flagship product Lego which consists of interlocking plastic blocks and small objects which can be connected to each other and build a structure to your imagination. To see an example of a full brand strategy / positioning case study, click one of the links below: Over the years, LEGO bricks have grown in popularity and have been named Toy of the Centurytwice. There were also competitions held in corporates like Lego Serious Play which challenged the creative thinking capabilities of the team members to build a structure which would portray the identity of the company through the Lego structure. ], Best Personalized Shopping Experiences in Retail, eCommerce Dashboard: KPIs, Key Components, and Examples for the Perfect Template, ChatGPT and Retail: 7 ways AI Can Increase Business Efficiency, The 28 Best Customer Experience Examples in 2023, 54 eCommerce Homepage Best Practices That WORK [2023], 21 chatbot retail use cases to replicate for your brand, The best 6 dynamic image generators for eCommerce, Product page best practices: The 38 most efficient tactics to replicate in 2023, 17 Retail Events (EU): Which to Attend and How to Take the Maximum Value Out of Them, Retail Week Live 2023: Why You Should Not Miss It, Shoptalk 2022 Europe: How to get properly prepared for the famous retail event, ContactPigeon at Xenia 2021 Hospitality Expo (Highlights), LEGOs revenue in 2019 was $531.2 million US dollars. 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. 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. It is manufactured by The Lego Group, Denmark. It also underlines how vital it is to go after international expansion to secure long-term growth (alongside research to back up your plans). It goes through rigorous tests to qualify to be sold out in the market, which incurs a lot of cost to the company. Pursuing multiple, complementary innovations that harmonize to create something is much better than any one key alone.. Now it's real risky here, which is that by trying to do both; differentiation and cost control, the company ends up doing neither thing very well. Like a home, companies need a solid foundation to ensure they can withstand the test of time. I hope you enjoyed learning about Lego Group and analyzing the company's generic strategies. STP marketing as a planning tool. Its iconic brick remained central to the line, and thus LEGO fused innovation and experimentation with a throwback to the classics. Step 4 - Designing a Marketing Mix using 4Ps - Product, Price, Place & Promotion. These were cleverly targeted at a more adult-dominated demographic, and consequently sold at a premium price. Lego toys are not very cheap as a lot of precision and high-quality material goes into the making of such toys. Lego was not just restricted to toys but it also entered a much broader space in the market. In the five years leading up to this point, Lego had invested in massive growth. Make more informed selections: You'll get better . A doctoral program that produces outstanding scholars who are leading in their fields of research. The toys are exported throughout the world so that the toys are made more accessible to the people. Store expansion should help secure sales growth. Earn your masters degree in engineering and management. The toys are generally targeted to the kids or middle and upper-class families. Their Instagram page offers similar content, and posts receive numerous likes and comments, showing excellent user engagement. By preserving this spirit of creativity and exploration, it has secured its place in our homes for years to come. which is the focus of Lego's marketing strategy for content delivery and branding. AsWhartons business analysis journal reported, they reduced losses and set the stage for a new period of rapid growth. The toys have had several themes like space, robots, castle etc. 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. Lego's new brand growth strategy paid off - they returned to growth again in 2018, with profits and sales both increasing by 4%. On the other hand, they also acknowledged the advanced digitization in Chinese play that would require them to continue creating their own digital LEGO products. Its important to nurture a culture thats able to shift gears if traditional methods don't deliver desired results. The Coronavirus Survival Guide for Retail [Infographic], COVID-19: How 34 Businesses Adapted Their Marketing Strategy During Crisis, Business Continuity for Retail: Lesson from COVID-19, Sephora: The Omnichannel Strategy Which Redefined CX in Cosmetics, LEGO: The Marketing Strategy Behind the Toy Industry Titan, John Lewis Omnichannel Strategy: How the UKs top homeware retailer reached the top, Farfetch Case Study: Analyzing The Strategy of the UK Fashion Unicorn, New Look: The Marketing Strategy Behind the UK Fast-Fashion Retailer, How ZARA Dominates the Ecommerce Fashion Industry, Why ASOS is the Absolute UK Ecommerce Success Story, Screwfixs Marketing Strategy: The story behind the largest UK Trade Tools & Hardware Retailer, IKEA: The omnichannel strategy the Swedish furniture retailer used to reach the top, SUPERDRY case study: The marketing strategy behind one of the top UK clothing retailers, Boots: The omnichannel marketing strategy behind UKs leading pharmacy retailer, FMCG Marketing Strategies to Increase YOY Revenue, ALDIs marketing strategy: The key growth ingredients of the FMCG titan, Tesco Case Study: How an Online Grocery Goliath Was Born, ASDAs marketing strategy: How the British supermarket chain reached the top, Sainsburys Marketing Strategy: Becoming the Second-Largest Supermarket Chain in the UK, Argos Marketing Strategy: How the UK Catalog Retailer Nailed Omnichannel, The Ocado marketing strategy: How it reached the UK TOP50 retailers list, Marks & Spencer eCommerce Case Study: 3 Growth Lessons for Retailers, The 2023 Retailer Guide to Customer Engagement Best Practices, How to improve customer engagement in retail [30 Examples], How to choose the ideal retail customer engagement platform, The 30 Most Important Customer Engagement Metrics You Should Track in Retail, 13 Customer Engagement Strategies for the Fitness Industry, How Retail Business Intelligence can redefine Customer Experience, 20 Customer Engagement Strategies for the Tourism ndustry, Facebook Ad Segmentation: A How-To Guide for Successful Ecommerce, eCommerce Marketing Strategy: A Step by Step Guide [2023], Omnichannel eCommerce Marketing Guide for Retailers [2023], eCommerce Personalization: The Absolute Guide [2023], The Ultimate eCommerce Marketing Automation Guide [2023], Ecommerce Checkout Flow: A Designers Checklist, Category Page Best Practices for eCommerce, The Best of the Best Product Pages [2023 updated], Best Checkout Pages in eCommerce [2023 Ed. Through a mixture of old and new, LEGO has cherished the classics while embracing innovation, entrepreneurship, and technological change. 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. Hence this concludes the Lego marketing strategy and marketing mix. Stock was piling up in warehouses because Lego had too many product lines, and there just wasnt enough room on the shelves in toy stores. 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. Aside from its multiple toy sets, it has also branched out into multiple mediums to promote its brand. LEGO's products can contain hundreds or even thousands of pieces, are very detailed, and can be complex. Therefore, the company launched the first sub-brand of LEGO Duplo for young children and after that the more advanced LEGO Technic was introduced to older men. The price strategy of LEGO contains many aspects of the product manufacturing to its delivery to the customers. You will learn about the two main generic strategies that businesses can pursue, which can be complemented by broad or narrow scope to yield four key types of strategic positioning. AI-boosted resumes increase the chance of being hired, Intel CEO on bringing chip manufacturing back to US, Women and leadership: How to have a healthy relationship with power. When establishing a new growth strategy, Lego decided to set its sights on China, having already seen double-digit growth there. They tripled their workforce and tripled the number of lines they offered, and this had left the company over-extended. The company's pricing strategy is targeted at middle-class families with . LEGO's detailed construction plans for their products are the right strategy. Fill in your email and well drop fresh insights and events info into your inbox each week. The promotional strategy of Lego has proved to be the driver of global success. Through trial and error and a number of failed digital-only initiatives, LEGO discovered customers wanted digital experiences that complemented core offerings, rather than replaced them.
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