LEGO MKT

LEGO

Jaime Rosaldo,Ana Padilla, Santiago Gutierrez, Valentina Beylan , Juan Montaño

The bases:

Lego is founded in 1932 by a danish man named Ole Kirk Christiansen, At first they were wooden toys but in 1949 he introduced plastic interlocking.In 1954 the company became LEGO Group and four years later the interblocking was patented. The next years were a continuous improvement in the sets and technologies.

How lego was invented

O1

The beginning of the magic...

The product that changed it all:

The obvious answer is the LEGO brick or the LEGO sets, but the true star that placed LEGO in the worldwide spot was: The “LEGO System in Play” in the late 1950’s.

Target Market at the beginning vs nowadays

• At the start ups of the company the target market LEGO wanted to achieve was children from 1 to 15 years old.

• Today’s LEGO audience primarily consists on children from 3 to 12 years old; But the brand has successfully tapped into the adult community with AFOL.

Info

LEGO Target Market analysis - Edubirdie. (2022b, septiembre 1). Edubirdie. https://edubirdie.com/examples/lego-target-market-analysis/ Patty, P. C. (2023, 23 septiembre). LeGo Marketing Strategy: How they built a global toy empire. DRBRAND AGENCY. https://drbrandagency.com/digital-marketing/lego-marketing-strategy/

What is microenvironment?

Competitors

Brand Loyalty

Responsible pricing strategies

Marketing positioning and differentiation

LEGO's marketing team has successfully developed brand loyalty, by generating brand lyalty Engaging LEGO Community, brand consistency in Marketing.

The LEGO marketing team has maintained and made responsible pricing strategies through a sophisticated mix of value perception, market segmentation, and dynamic adjustment to market conditions and consumer preferences

LEGO's marketing department employs various strategies to gain positioning and differentiation from their competitors. Here are several key approaches they use.

Suppliers

CSR: Corporate Social Responsibility

Long-Term contracts with suppliers

The company has set out 12 Responsible Business Principles that relate to ethics, people, children, and the environment. The department team chooses carefuly which suppliers fit in the values of the company, and make an internal examination ecery certain time. They affect the department because, in the past years people have been taking into consideration companies that are eco friendly.

They supported their efforts with a team of analysts who built detailed cost models to understand their suppliers' costs better than the suppliers themselves did.Additionally, the company consolidated its distribution channels, reduced the number of logistics providers, and optimized every cost driver to provide just-in-time service to new retail giants, saving the company about $100 million.

What is macroenvironment?

microenvironment:customers

Licensing and merchandising mentality

Online customer personalization

The LEGO marketing department has implemented several digital marketing and personalization strategies to enhance its marketing efforts and engage with its audience in more meaningful ways.

LEGO has embraced a licensing and merchandising mentality, allowing the company to enter new marketplaces, diversify its merchandise, and adapt its product lines to better suit evolving children's interests.

Microenvironment

Macroenvironment Cultural

Lego segments its market based on demographics by offering products that cater to different age groups, genders, and cultural preferences. The company balances its global product range with localized sets to cater to specific cultural preferences, acknowledging the significance of local cultural nuances despite the homogeneity in consumer preferences due to globalization.

"Braile alphabet set."

"Everyone is awesome" LEGO set

Macroeconomics Politics

Political stability is crucial for its manufacturing units and markets, as unrest or policy changes can disrupt supply and impact profitability. Trade regulations, tariffs, and trade wars can directly affect LEGO's cost of operations and profitability. Additionally, political decisions related to product safety, intellectual property rights, and environmental regulations can significantly impact LEGO's business.

More about this....

Macroenvironment Technological

Digital play integration

Manufacturing Technologies

Product Longevity and Architectural Innovation

Supply chain optimization

conclusion

• The difference between the macroenvironment and microenvironment is that the microenvironment affects the company's marketing department and the macro affects the external surroundings of the company in general.

• Knowing the target market and the weaknesses and strengths inside a company can help the marketer to identify and attack opportunities.

• A good company and a great company differentiate in that a great companies are prepared for constant change and adapts to new trends.

• LEGO has proved and continues proving that is one of the best companies in the world, placing their innovation and their clients as a priority.

macroenvironment

1. Heckmann, K. O. E. S. A. P. (2007, 29 agosto). Rebuilding Lego, Brick by brick. Strategy+business. https://www.strategy-business.com/article/07306
2. https://www.scdigest.com/assets/on_target/07-09-25-7.php
3. Upfblog, V. A. P. B. (2019, 14 mayo). LEGO and the challenge of supply chain management. Operation & Supply Chain - Industry 4.0. https://operationsmanagementblog.home.blog/2019/05/14/lego-and-the-challenge-of-supply-chain-management/
4. Suppliers - about us - LEGO.com. (s. f.). https://www.lego.com/de-de/aboutus/suppliers
5. Brick by Brick – the LEGO supply chain. (s. f.). https://www.koerber-supplychain-software.com/en/knowledge-center/blog/lego-supply-chain

The LEGO Group deals with a wide range of suppliers, including those providing raw materials, components, and services. While specific supplier names are not readily available, the company has a vast network of over 11,000 suppliers

References

https://www.lego.com/en-us/aboutus/lego-group/the-lego-group-historyAugustyn, A. (2014, 31 enero). LEGO | History & Facts. Encyclopedia Britannica. https://www.britannica.com/topic/LEGO

1. Featured. (2023, 30 mayo). What marketing strategies did LEGO use? - InternationalMarketing.io. https://internationalmarketing.io/qa/what-marketing-strategies-did-lego-use/
2. Qian, J. (2023, 3 mayo). LEGO: The marketing strategy behind the toy industry Titan. ContactPigeon | Blog. https://blog.contactpigeon.com/lego-marketing-strategy/
3. Dubosc, P. (2018, 9 agosto). Why is LeGo taking marketing to the next level? https://www.linkedin.com/pulse/why-lego-taking-marketing-next-level-pierre-antoine-dubosc

LEGO has crafted narratives that tap into universal human experiences and values, creating a world of imagination and creativity that resonates with consumers of all ages.

Story telling and community engagement

LEGO stores have been designed to powerfully display the latest partnerships and immerse consumers into the brand’s atmosphere.

Innovative features in retail stores

Star Wars, Harry Potter, and Marvel are some franchises that Lego has partnership with. LEGO has been able to create inmersive experiences for fans of all ages.

Partnerships with popular franchises.

Fun fact

The first slogan of the Lego company was released in 1958. It means "Only the best is Good Enough" in Danish

The LEGO Group History - About us - LEGO.com. (s. f.). https://www.lego.com/en-sa/aboutus/lego-group/the-lego-group-history

12 Business Principles

• Ethics: Transparency & Integrity
• Worker Rights & Well-being
• Child Rights & Well-being
• Environment: Planet Promise
• Responsible Sourcing
• Safety & Quality
• Diversity & Inclusion
• Learning & Development
• Family Friendly Workplace
• Community Engagement
• Stakeholder Engagement
• Reporting & Governance

1. The LEGO Group. (n.d.). Responsible Business Principles - Sustainability - LEGO.com. https://www.lego.com/en-us/sustainability/people/responsible-business-principles
2. The LEGO Group. (n.d.-a). Responisble Buisness Principles. In LEGO. LEGO. Retrieved February 15, 2024, from https://www.lego.com/cdn/cs/sustainability/assets/blt123637cf697b8687/1023787_LEGO_Responsible_Business_Principles_130618_FINAL.pdf

LEGO's quality control processes are standardized globally, regardless of the manufacturing location, to ensure that every brick meets the same rigorous quality standards. This unwavering dedication to quality and precision has allowed LEGO to maintain its position as a leader in the toy industry, differentiating itself through its consistent adherence to quality and durability.

The company has released sets inspired by Chinese culture and traditions.These sets have been well-received and have contributed to LEGO's success in the Chinese market.

Global Research and cultural relevance

Quality control and durability

1. The LEGO group reveals its largest line-up of novelties inspired by Chinese culture at the CIIE. (2022, 4 noviembre). LEGO.com. https://www.lego.com/en-au/aboutus/news/2022/november/the-lego-group-reveals-its-largest-line-up-of-novelties-inspired-by-chinese-culture-at-the-ciie
2. The LEGO Group. (s. f.-a). Diversity and inclusion - Sustainability - LEGO.com. https://www.lego.com/en-us/sustainability/people/diversity-and-inclusion
3. Quality in every detail - LEGO® History - LEGO.com US. (s. f.). https://www.lego.com/en-us/history/articles/d-quality-in-every-detail/
4. Venables, M. (2013, 21 abril). How LeGO makes safe, quality, diverse and irresistible toys everyone wants: Part two. Forbes. https://www.forbes.com/sites/michaelvenables/2013/04/20/how-lego-makes-the-safe-quality-diverse-and-irresistible-toys-we-all-want-part-two/?sh=7fe88aad6118

Ai Wei Wei Incident

Ai Weiwei had planned to use LEGO bricks for an art installation, titled "Andy Warhol / Ai Weiwei," at the National Gallery of Victoria in Melbourne, AustraliaHowever, LEGO refused to fulfill a bulk order of LEGO bricks for Ai Weiwei's project, citing their policy of not endorsing or supporting projects that involve "political, religious, racist, obscene, or defaming statements."

Neuendorf, H. (2016, 15 enero). Through social media campaign, Ai Weiwei gets LeGo to change its sale policy. Artnet News. https://news.artnet.com/art-world/lego-reverses-policy-ai-weiwei-406733

Lego has had a significant impact on entertainment, with movies and theme-based attractions that appeal to a diverse demographic, including children and adults from various cultural and demographic backgrounds.

Impact on entertainment

The company hires people from a range of different backgrounds to foster a diverse and inclusive work environment, recognizing that a diverse workforce can bring forth a wide array of ideas and perspectives.

Diverse workforce

Lego balances its global product range with localized sets to cater to specific cultural preferences, acknowledging the significance of local cultural nuances despite the homogeneity in consumer preferences due to globalization.

Global reach and cultural sensitivity

1. Admin. (2023a, agosto 21). LEGO PESTEL Analysis - The Strategy Story. The Strategy Story - Simplifying Business Strategies. https://thestrategystory.com/blog/lego-pestel-analysis/
2. Momin, A. (2021, 19 septiembre). Lego PESTLE Analysis: Tiny Pieces, Global reach. PESTLE Analysis. https://pestleanalysis.com/lego-pestle-analysis/
3. Studymode.com. (2021, 10 agosto). Strategic analysis of the 2004 LEGO Group crisis. 524 Words | Studymode. https://www.studymode.com/essays/Strategic-Analysis-Of-The-2004-Lego-69336847.html
4. Business Bliss FZE. (2023, 6 noviembre). Marketing Essays - LEGO. https://www.ukessays.com/essays/marketing/lego.php

1. Fair play - Notices & Policies - Legal - LEGO.com US. (s. f.). https://www.lego.com/en-us/legal/notices-and-policies/fair-play/
2. The LEGO Group. (2023, 20 diciembre). Foreign Trade Compliance Manager - Careers - LEGO.com. https://www.lego.com/en-us/careers/job/foreign-trade-compliance-manager-fcde393770c11001a54381a9673f0000

How it's applied

LEGO is impacted by various trade regulations, including those related to product safety, intellectual property rights, and international trade. Adhering to different safety standards in various countries is crucial for LEGO to maintain trust and avoid legal issues For instance, tariffs imposed on plastic imports can increase the cost of producing LEGO bricks

Lego has tapped into the rise of digital technology by offering products such as the LEGO video games series, LEGO BOOST (which integrates coding), and augmented reality sets. These digital integrations have helped the company stay relevant and appealing to consumers in an increasingly digital world

1. Admin. (2023c, agosto 21). LEGO PESTEL Analysis - The Strategy Story. The Strategy Story - Simplifying Business Strategies. https://thestrategystory.com/blog/lego-pestel-analysis/

Lego's commitment to product longevity, where a set from decades ago can still interlock perfectly with one made today, has been a key factor in managing the obsolescence rate of its products. The company has also undergone architectural innovation, enabling new communication streams throughout the organization and fostering collaboration and coherent choices

1. Admin. (2023b, agosto 21). LEGO PESTEL Analysis - The Strategy Story. The Strategy Story - Simplifying Business Strategies. https://thestrategystory.com/blog/lego-pestel-analysis/

Online branding, ads and campaigns

How it's applied?

By incorporating interactive online experiences, LEGO has been able to bridge the gap between physical and digital play, offering immersive features that allow users to engage with the brand. This innovative approach has not only expanded its presence in the online world but has also solidified its position as a beloved brand that appeals to both young and old alike

• e-commerce personalization.
• Interactive online content.
• Augmented Reality (AR)
• LEGO Life App

1. Handley, L.(2019). How marketing built Lego into the world's favorite toy brand. CNBC.com. Retrieved fromhttps://www.cnbc.com/2018/04/27/lego-marketing-strategymade-it- world-favorite-toy-brand.html
2. LEGO.com. (2019). Campaigns. Rebuild the world. Retrieved from https://www.lego.com/enus/campaigns/rebuild-the-world
3. The Effective LeGO Marketing Strategy: Building Success Brick by Brick. (s. f.). https://www.brandcredential.com/post/the-effective-lego-marketing-strategy-building-success-brick-by-brick
4. LEGO® Life Magazine app. (s. f.). LEGO® Life. https://www.lego.com/en-sg/life/app

Reference:

LEGO® System in Play - LEGO® History - LEGO.com MY. (s. f.). https://www.lego.com/en-my/history/articles/lego-system-in-play/

Reference

Philip Kotler, Gary Amstrong. Fundamentos de Marketing 11e. Cap 1

1. Bhasin, H. (2024, 18 enero). Marketing mix of LeGo and 4Ps (Updated 2023). Marketing91. https://www.marketing91.com/marketing-mix-lego/
2. Pratap, A. (2019, 26 junio). Lego Marketing Mix. CH Blog. https://cheshnotes.com/lego-marketing-mix/
3. Schwab, P. (2022, 8 septiembre). Succeed in your marketing mix, and follow LeGo’s example! Market research consulting. https://www.intotheminds.com/blog/en/marketing-mix-exemple-lego/

Understanding economics

Why is LEGO expensive?

The company has employed promotional pricing strategies, including seasonal discounts, bundle offers, and loyalty program rewards, to drive sales during crucial shopping periods and encourage repeat purchases. LEGO has implemented a geographical pricing strategy, allowing prices to vary across regions based on local economic conditions, currency valuations, and market demand, thereby maximizing profitability in new markets while remaining competitive globally.

The macro environment in marketing refers to all the external factors that a business cannot control but must navigate, such as the economy, social trends, and the weather.

1. Barenscheer, T. (2023, 31 mayo). Unraveling the macro environment: your key to marketing success. Official Teamly Blog - Official Teamly Blog - Your Project Management Resource. https://www.teamly.com/blog/macro-environment-in-marketing/
2. Philip, B. (2022, 25 enero). Micro and macro environment factors to be analyzed for companies. https://www.linkedin.com/pulse/micro-macro-environment-factors-analyzed-companies-bobin-philip
3. Team, I. (2023, 20 diciembre). Macro environment: what it means in economics, and key factors. Investopedia. https://www.investopedia.com/terms/m/macro-environment.asp

LEGO among the others

LEGO has implemented a VIP program that offers exclusive perks, gifts, and discounts to its customers, creating a sense of community and providing additional value to its loyal customer base. LEGO involves customers in product development by collaborating with customer focus groups to design new products. The company also encourages customers to submit their ideas for new products through its LEGO Ideas website LEGO puts a great emphasis on brand culture and encourages staff to engage and collaborate. LEGO actively works to ensure its staff enjoys their employment journey, much like we prompt our clients to do for their customers

• Consistent Brand Identity
• Innovative Product Offerings
• Engagement with the LEGO Community
• Exclusive Sets and Collector's Items
• Global Brand Recognition

1. Johnson, K. (2023, 26 diciembre). This loyalty tactic practiced by LEGO is one of the best way to increase brand loyalty. Konigle. https://konigle.com/p/this-loyalty-tactic-practiced-by-lego-is-one-of-the-best-way-to-increase-brand-loyalty-45498bd3
2. Meyrick, F. (2018, 8 marzo). 7 Ways LeGo’s marketing proves everything IS awesome. https://www.linkedin.com/pulse/7-ways-legos-marketing-proves-everything-awesome-francesca-meyrick
3. Qian, J. (2023b, mayo 3). LEGO: The marketing strategy behind the toy industry Titan. ContactPigeon | Blog. https://blog.contactpigeon.com/lego-marketing-strategy/

Lego has optimized its supply chain and manufacturing processes, leveraging digital operating models and enterprise platforms to accelerate product launches and improve operational efficiency

1. Razavidinani, K. (2022, 6 octubre). Lego’s digital transformation - From the brink of bankruptcy to digital operating model. https://www.linkedin.com/pulse/legos-digital-transformation-from-brink-bankruptcy-razavidinani

Lego has continuously advanced its manufacturing technologies to improve efficiency and product quality, enabling the company to adapt to changing consumer demands and maintain its competitive position

1. Admin. (2023c, agosto 21). LEGO PESTEL Analysis - The Strategy Story. The Strategy Story - Simplifying Business Strategies. https://thestrategystory.com/blog/lego-pestel-analysis/