LEGO Marketing Strategies

LEGO Marketing Strategies
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LEGO Business Model
Part 1
In the case study, Lego faced strenuous financial and inventory problems that proved to be a test for management and creativity. The winning trick was to become innovative to attract and remain relevant to its customers. The company has become innovative in terms of manufacturing processes and product development. Lego took a step further and established a dedicated team and Future Labs for more production of creative products.
Lego advanced in market research, increasing customer base, competitive edge, relevance, and relevance. Lego adopted a customer-centric approach that comprehensively engaged customers and created fresh ideas for their customers' needs. The company gained a competitive edge by adopting the competitors and new models based on a customer-centric approach.
The company has accepted and is courageous to adapt to customer needs and changes with time. The company previously made toys with wood and improved and started making toys from plastic. Lego was inclined to include a new friends line to increase its customer base in its tight financial position, primarily targeting girls. The change increased the customer base and revenue, gained a new target, and improved relevance.
The company's change in leadership to a powerful and future-focused one assisted in reinventing and renewing the Legos through new plans like cost-cutting and customer-based production. Jorgen managed to increase the customer base, allocate more revenue to marketing research, and cut costs. A strong leadership figure is pivotal to creating a strong internal culture and assigning responsibility crucial to the company's turnaround. The experience from Jorgen is crucial in the current position when making decisions and remaining updated on market strategies and future planning.
Lego conducted market research to establish the customers' needs and manufactured toys to the customer's preferences. The company gained a crucial advantage in quality assurance capabilities. The combination of the customer needs ensured that the company could integrate the existing sets and the new products. Maintaining compatibility and Lego bricks is a crucial principle.
LEGO has promoted employee loyalty and commitment by promoting ethical labor practices within its supply chain. The practice ensures fair treatment of workers and eventually results in high productivity and quality work with minimum supervision. The independence of employees reflects high customer service, generating a high rate of customer satisfaction, increasing referral marketing, and a high rate of customer base.
New Marketing StrategiesThe company's new research model improved the narrow insight into customer preferences and improved the market base through customer preferences. LEGO introduced the friend's line, the best preference in ensuring customer preferences are met and well-researched. The role of market research also included understanding the untapped potential, which was established to include girls' preferences.
Competitive Advantages
The company has maintained a long range of sales and has met high standards, consistently improving customer trust. The long-time legacy is a delicacy that has supported the company's pushing advantage over the competitors. Since its establishment, LEGO has grown exponentially and has maintained a global reach, a network for the distribution of its products that are well-researched to ensure customer satisfaction. The continuous innovation of the products and plans, like including Future Labs to enhance the company's capabilities to venture into different and diverse sales modes, like programmers, industrial designers, and master builders, will help model new products in modern times.
Ethical ChallengesIn the past, Lego has faced ethical challenges in sourcing sustainable materials in manufacturing and packaging. The lack of plant-based plastics causes delays and high costs that the company must deal with to ensure effective cost management. For labor practices, the company has refined and promoted ethical labor practices within the supply chain, ensuring fair treatment of workers. Therefore, the company aligns with ethical and good practices and will need to remain active in improving them as competitors advance with more plans for high ethical standards. Strong ethical standards are essential in the modern world for maintaining a firm reputation.
Part Two
External Environmental FactorsExternal environmental factors are crucial in the growth of a business. For Legos, it is no different and has been highly affected by external factors. For instance, the economic stress since the pandemic has experienced strains that directly affect the business. Due to the economic recession, customer expenditure is low, and governmental rules to increase lending rates restrict the monetary capabilities of customers.
Political Factors
Politically, a company needs to remain neutral and maintain a low opposition from each group supporting any political view. Politics is a tough stand, and a company requires a broad customer base, which is crucial to remain neutral as a stand will reduce opposition retaliation. Lego experienced a political effect when WeiWei held an exhibition, but the company abstained from supporting his visit. His fans felt hard done by and retaliated with non-purchase of Lego products. Taking stands will highly affect the customer base and are, therefore, very hard to stand for or against.
The company is subject to regulation and safety standards and must adhere to the industry requirements that majorly affect the production, manufacturing, and distribution of the products. In addition, LEGOs need to be compliant with international regulations to have a smooth business through the international markets. Furthermore, LEGOs must adhere to global trade policies that affect the international supply chain and distribution. The company must consider International tariffs and trade policies during trade.
Lego heavily relies on intellectual properties to safeguard its design. The intellectual properties include patents and enforcements, which influence the company's capability to prot...