That implies soaring sales volume, global brand recognition, unique brand relationships, unexpected appeal among females, a diversified digital business model, as well as an Oscar-nominated soundtrack out of a massively famous movie like LEGO. It has consistently emphasized the importance of high quality in all of its collections, staying true to its age-old company spirit of "Only the best is good enough." All LEGO products, across all subsets of the brand, are rigorously tested to ensure that they meet the highest safety
Lego Brand Inventory Accomplishment: A Case Study
Added on 2021-09-02
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Case Study: Lego Brand
Brand Inventory Accomplishment may be gauged in a range of methods. That implies soaring sales volume, global brand recognition, unique licensed relationships, unexpected appeal among females, a diversified digital business model, as well as an Oscar-nominated soundtrack out of a massively famous movie like LEGO. As per research from consultant company Brand Finance, it surpassed Ferrari, becoming the largest and most powerful brand for 2015. The fundamental basis of LEGO is whether it attracts people of all ages and genders. Children like interacting with the toys, and adults associate the brand with childhood memories (Neal, 2015). The LEGO Group's market currently has been the toy sector. It designed toys for children of all ages and developmental stages. The collection includes items of all ages. Its playing components may provide significant delight to youngsters aged 0 to 16 (Dhar and Wu, 2015). The brand equity of LEGO, the importance of innovation, as well as the range of products, are the key attractions for the present target categories. Brand Portfolio: Legohas mastered the skill of cooperation and is presently working with a variety of companies. The pictures of 15 multiple brands linked with the LEGO company have been shown in the figure shown in Appendices. The LEGO Group's many divisions and collaborations adhere to several core principles that integrate the company's various divisions. Ithas consistently emphasized the importance of high quality in all of its collections, staying true to its age-old company spirit of "Only the best is good enough." All LEGO products, across all subsets of the brand, are rigorously tested to ensure that they meet the highest safety and quality standards. Kidsand parentsalike have flocked to LEGO items as a result of this strategy. Creative thinking that is structured all LEGO items is based on the LEGO system that implies joining and deconstructing in an alternative manner. Apart from the special themes created in the shape of animals, cars and aircraft. Lego has extended the portfolio by introducing games and applications, as mentioned by Pratap (2019). A favorable outcome The LEGO Group aspires to make a positive difference in all aspects of its business. All LEGO components are dedicated to environmental protection, preserving the society that children will inherit, and motivating and training tomorrow's entrepreneurs. Lego's diverse and distinctive product line also serves as a company's competitiveness. The brand's primary item is Lego bricks. Still, it has expanded to include a huge variety of gadgets and themed packages and internet activities for children and teenagers, as Wolf (2014) mentioned. Whereas its inventory is lucrative, it is also unique, unique, and well-organized. The company's product line is responsible for a long competitive edge.The following are the key sections:Preschool: These are among the segments for youngsters who haven't begun education. This range of goods helps youngsters improve their cognitive skills while also encouraging kids to create simple projects using LEGO bricks on their own.Young buildersintroduce youngsters towards the globe of LEGO brick construction, as also mentioned by Mozarella and Hains (2019). This business segment caters to youngsters around 3 to 5. “Lego Duplo Play Sets” and “Building Sets” are examples of comparable items. These are targeted at enticing youngsters that have a basic understanding of how to construct with LEGO bricks.Make and Create: The category concentrates on developing, designing, and generating choices for kids aged six and above, with instances such as "Legodesigner Sets" and "Lego Technic." These appeal to kids who have a working understanding of how to construct more complex LEGO models. Brand Elements: The distinctive LEGO brick is by far the most popular product piece of LEGO. It may be interlocked with other LEGO brick, whether it was manufactured in the past or in the current times. Every LEGO brick has the word "LEGO" engraved upon it that dates back to the
company's inception. The current version of brick was first introduced in 1958; it is offered in a range of hues. Its interconnecting tubing gives it a one-of-a-kind design and limitless construction options. (Shcultz et al., 2013). Product Strategy: Lego’s marketing plan is intended to re-establish its portfolio of brands and build a long-term enterprise. LEGO's enduring brand image can be ascribed to its long-term advertising strategy. LEGO had a "Balanced Brand Portfolio," where its line of products was dispersed in a variety of ways throughout several phases, giving the company a competitive advantage over rival toymakers.Pricing Strategy: Pricing strategies may be termed as a successful tool in expanding the product reach to the majority of the customers.The average cost of producing a LEGO brick is around 10.4 cents. Based on the average price of components vs the pieces in the set, the cost to produce this set may range from $130 to 140 dollars, depending on distribution and promotion (Allain, 2014). In addition, the LEGO Company owns and operates seven amusement parks across the globe. Merlin Entertainments, which is affiliated with Merlin, manages the theme parks and is accountable for its yearly income. Merlin stated in April 2017 that they might build a theme park in Nagoya, Japan, as well as others in the coming years, due to a rise in earnings during the financial year of 2015. Also, the firm is relying on an odd-even pricing strategy. The core market has a cost, while the collection of auxiliary products has separate pricing. Kids may talk to their parents to purchase the items more readily if the cost is around $200 to 300 dollars; therefore, odd-even pricing is employed. Even though "Build Your Dream" is undoubtedly a unique product for the LEGO Group, there should be no skimming or penetration pricing during the launch period because the company wishes to prevent any unwanted consequences.Distribution Strategy: Consumers may buy the latest product straight from the LEGO Group on their site, which comes under the direct channel method.Similarly, consumers may purchase the latest items from JUSCO and SOGO, which are the authorized retailers, so LEGO is also using indirect distribution channels. Cooke (2009)mentioned that LEGO had 55 delivery sources to 11 locations across Europe; however, since consolidating all of its distribution activities into one site, that figure has been reduced to 11 shipping lines. Marketing: Many major businesses have achieved great success as a result of their unique advertising techniques and technologies. Its marketing approach is comparable to those of well- known companies such as Nike and Starbucks. Lego’s product offering is distinctive,butEinwächter and Simon (2017) argue that the brand's global popularity is also due to its advertising concentration. Company’s goods are well-liked all around the world. In view, the brand's approach against the elderly society seems to focus on a wider segmentation target to acquire as many consumers as possible inside the existing targeted demographic. LEGO wants to give kids the ability to construct their own universe using virtual characters from their favorite movies and video games, boosting confidence and knowledge (LEGO, 2021). In terms of Ambassadors, Members are appointed from among LEGO lovers from a range of different areas who are dedicated to enhancing their experience and building abilities with the global LEGO community of children, fans, and enthusiasts. The LEGO Ambassadors' purpose is to encourage LEGO builders of all ages throughout the world to make, explore, construct, and build (Botoric, 2015). The LEGO Group's Community Engagement Team is in charge of the LEGO Ambassador Program. This group is focused on fostering relationships between the company and its customers. In Lego's new product, the single criterion for segmentation is age. All youngsters between the ages of 2 and 16 will be Lego's target market because one of the marketing goals is to expand market share and broaden the target market. Other criteria such as social position, wealth, and educational level will not be considered when segmenting the market because the brand's product is suitable for children aged 2 to 16.
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