ROLE OF MARKETING IN DEVELOPING FUTURE STRATEGIES FOR LEGO
LEGO is a company and a brand that uses the idea that building blocks can construct anything a child’s imagination and creativity can conjure. There is simplicity in its idea, which lets kids be creative. LEGO has been successful in branding and creating a name for itself. From being a simple building block brand, it has built itself up into an entertaining brand. The growth of the brand is driven by line extensions and the core remains the same- simplicity. The line extensions currently make sure that the core product has relevance again.
In 2017, LEGO has seen a slump in its sale and there has been a cutback in the workforce as well (Lego Website, 2017). Some of the campaigns that LEGO has launched which resulted in extensively marketing the brand are the LEGO Movie and The LEGO Batman Movie. LEGO has frequently teamed up to create superhero LEGOs. Competitors of the LEGO brand include VTech, Meccano, Coko, Tyco Toys, Mattel, and Leapfrog (Hellar, 2015).
This report aims to provide an extensive analysis of marketing strategies and come up with a comprehensive set of marketing strategies that LEGO could employ to get back to its position as a market leader.
Market Research is the collection of data to examine if a product is able to satisfy the needs of the customer. An effective market research provides the company with information on competitors, market trends, demographics, economic shifts and the customer’s spending traits. Market research helps in the identification of new business opportunities and targets the potential customers and increase sale (Iacobucci, 2014). Research also helps in minimizing the loss the business could face. Before the launch, it is possible to predict the potential problems and work according to it.
When market research was done on LEGO, the preferences of a child were analyzed. Research showed that the target group was mostly young boys, at the time of launch. However, it has picked up among all children (Wadavi, 2016). As computer, laptops, and tablets became more popular among kids; research showed that children were playing games for the value of mastery that was obtained through scores, ranks, and levels. Further, it was evident that kids preferred the instant gratification that computer games provided. The success that LEGO has experienced is because the product was developing through the eyes of the customer rather than the company (Davis, 2017).
The LEGO brand has driven sales by thoughtful resource allocation. There has been a heavy investment made in the development of the LEGO brand through social media (Batista, 2014). There is a clear strategy upon which resources are allocated. The investment made should be measurable and tracked periodically. Direct Sales, the brand-building ability, efficient monitoring and damage control are the common metrics that are employed by LEGO (Bold, 2017). The marketing should inspire a reaction, such that it is positive for the business and they are helpful and reactive.
By coordinating the sale and the marketing of a brand, the company’s strategy strengthens. It also ensures flawless and efficient implementation Sales and marketing must support each other right from the central concept to the minute details involved in the strategy (Iacobucci, 2014). When a company is in the growing stage or is a mid-sized business, marketing is a strategic function. It only focused on positioning, segmenting and the product lines. As it became bigger, marketing took on a more wholesome approach focusing on long-term growth and sustained development (Lego Website, 2017). By integrating the two and by coordinating function, it can be achieved.
There are five strategies involved in successfully developing and implementing a market strategy. They are speed and agility, killing the old formula, innovating with marketing, putting creativity out there and embracing the volatile uncertain complex and ambiguous world, also known as VUCA (Hellar, 2015). VUCA is based on the fact that the millennial generation has grown up and they are the main audience who do the purchasing part, along with Baby Boomers. The strategy should be done in such a way that, the marketing is meant for the buyer, while the product is meant for the child (Miller & Nobles, 2013). Marketing towards a child does not have much significance or impact.