LEGO attempted to copy that strategy, cranking out numerous product lines. Positioning strategy is an important component to competing in the marketplace for customers. LEGO demonstrates that companies that have grown large and cumbersome can adapt to rapid change and re-emerge as market leaders; by encouraging experimentation, listening to consumer desires, and staying true to their businesses foundations, LEGO has declared its intention to grow and deliver. According to BusinessInsider, the rapid increase in the variety of toys sold by LEGO, many of which were commercial failures, proved to be expensive and moved the company away from its iconic toy brick models at a huge cost. 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. LEGOs oversized workforce was significantly reduced. . It has an official website which provides items, badges, rank, and trophies for certain tasks. Outsourced manufacturing means the company must rely heavily on the Chinese. The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. 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. Reaching saturation point can come as a surprise, like it did for Lego, and then you may be faced with suddenly having to start from scratch in a new market to secure sales. Lego expanded much beyond just toys and play. And while these foundations have slowly been built up, in the early 2000s the company was in a state of near-bankruptcy. We would rather do the investments upfront to be leading that change.. Lego products the whole idea of creative play experiences is something that resonates strongly with Chinese consumers.. As China continues to develop a very affluent middle-class numbering in the millions within the coming years, it represents a significant opportunity for LEGO and its market position. A non-degree, customizable program for mid-career professionals. Initially, these toys were made of wood. Analyzing the retail Lego set promoting strategy This growth is that the results of six key factors within the overall Lego set promoting strategy. Is there also a great illustration of how companies need to dynamically evolve and adapt to their environments? The LEGO Group (TLG) is a toy production company established in 1932 and headquartered in Billund, Denmark. You will be able to: 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! Meanwhile, Lego will invest heavily in e-commerce, ensuring it wont lose sales to online rivals like Amazon, which was blamed for last years collapse of Toys R Us. We are making these investments from a sound financial base to capture the opportunities being created by mega-trends, such as digitalisation and global demographic and economic shifts which are reshaping the industry. Presented by : GROUP 1 Nandini Aggarwal Ankur Arora Prachi Arya Vishnu Bhaskaran Pravin Bokil Hrinya Bose Agenda LEGO History and Evolution Product, Positioning, Segmentation and Target market Branding and Advertising Strategy Brand Extension & Pricing Distribution and Retailing Competitor analysis and Future strategies Percent. Based on years of research and what hes seen at LEGO and other companies, Robertson advocates for an expansive approach to innovation helping customers get more value from existing products by offering innovative complementary products, services, and business models. Lego is among the major players in this sector, holding over 43% of the market share in the construction toy category as of 2021. Started with the vision of . LEGO`s strategic positioning mainly involves the innovation of products. 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. Pursuing multiple, complementary innovations that harmonize to create something is much better than any one key alone.. Some adults adore Lego toys as well, assembling their collections of characters from movies, games, etc. 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 also decided to branch out of toy making and started expanding its theme park network globally. 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. The companys long term growth strategy includes a push into India and it has announced plans to open an office in Mumbai. Joyce runs Growth & Strategy at ContactPigeon. However, with little experience inhospitality, operating these establishments proved to be a logistic and financial strain on the firm, and loss-making continued. Spending time on Linkedin? I hope you really enjoyed reading about and working on this case about Lego Group. Module 4: Strategic Positioning and Strategic Renewal. Learn from Attests experts in the Consumer Research Academy. Published Fri, Apr 27 20181:13 AM EDT Updated Thu, Apr 11 20199:23 AM EDT.