Ch. 16 - Advertising, Public Relations and Sales Promotion

The advertising strategy of the LEGO group is always emphasizing on the unlimited possibility of the Lego bricks which could inspire creativity and imagination. The most aspirational advertisement must the following:

The advertisement contains a white Lego brick in the middle and the shadow of the brick is a outline of a ship. The advertisement is simple without any exaggerated words or graphics. Yet convey an aspirational message which even a small Lego brick could be  created into different incredible objects. Ships, planes, buildings, whatever you name it. It also shows the fascinating characteristic of Lego which it has endless possibility. As long as you have the idea, you can create anything out of Legos. With imagination, it could be anything. Here are some other examples express the same idea.

The LEGO group also using outdoor media to promote their brand. In Malaysia, the advertisement agency hired some Lego artist to create the poster with Lego that plays off the surrounding environment. The posters are easily recognized, the concept of the advertisement is fun and eye-catching. It leaves a lingering impression to passersby, also strengthen the brand image to the audiences.

Ch. 14 - Marketing Channels and Retailing

As one of the world largest construction toys manufacturer, the LEGO group often need to seeks of a new way or new strategies to distribute its product, so as to boots its product sales through different channels. 

1. Direct channel
The LEGO group has around 125 self-own LEGO stores operates in Europe, UK and North American. The LEGO stores plays a retailer role to distribute its products to the market. It aims to provide excellent service to customers while offering a comfortable place for parents and kids to shop the variety LEGO collection. For example, the LEGO store in Rockefeller Center has brick specialists there with extensive LEGO product knowledge can assist customers who are looking for the latest LEGO set, picking a gift for friends or even bring in their LEGO fan for a special treat. Moreover, it offers a spacious play section for kids to play LEGO with different scenario each month. There is pick a brick wall at the LEGO store where you can choose the bricks and elements you want in different shapes and color. Each store has different bricks and they will change in a certain period of time. LEGO lovers have another excuses to constantly visit the LEGO stores to find the special pieces to complete their own LEGO set.

Despite its own retail store, the LEGO group has partnered with PFCweb Inc. for order fulfillment from its Shop form Home catalog and online store. Those channels allow customers shops directly from LEGO without bothering to go to any retail store. They could just place an order either by phone or internet. 

In addition, the LEGO group offers affiliate program to expand its retailing channel. Partners of the affiliate program can enjoy 3% commission for each customer purchase. There is no monthly minimums and offers low return rate. It provides a motivation for small business to partner with LEGO. Not only facilitates the product distribution, also helps to expand its existing market and boost product sales.

2.Other retailing channels
The LEGO group also distributes their through other retailing channels such as department stores like K-mart and Walmart. Or you can purchase the LEGO set in the well-known toy store Toys"R"s. The LEGO set are distributed to different retail stores by supply chain and then being delivered to the customers through retailing. The LEGO group could take advantage of the conveniency, frame and popularity of other retailers to spread their product through out the world. 

Ch. 6 - Consumer Decision Making

Although LEGO is one of the leading brand in traditional toys industries, it still facing competition. There is a huge range of choices in the market for consumers to chose, consumers may switch anytime from this brand to other brand. The following are some factors that may affect consumer's decision making on purchasing LEGO products.

1. Social factor
People tend to purchase the brands they are well familiar with partially because most of them have high reputation in the market and could be treat as a guarantee of product quality. Since the information of the brand is easy accessible It is more safe to buy something that are well recognized rather than take the risk to buy something you do really know about. On the other hand, they are more likely to buy toys that have a trend at that time. As everyone talks about it, it helps to trigger purchasing desire of the consumers. For instance, LEGO made a considerable amount of profit in 2015 due to the launch of the new Star Wars movie. According to Newsweek, "The Force Awakens, ... quickly became a box office hit, taking in $1.9 billion worldwide. Along with tickets, fans also bought the toys, propelling sales of the franchise's merchandise and making Lego's replica of the Millennium Falcon one of the brand's best-selling products for the year.

2. Age and Gender factor
Gender or age attraction product- gender or age also plays an important role while consumer purchases a new product. LEGO organization make different product for boys and girls, because wants of every customer is basically different, so they made according to needs. This gender difference starts from the first year of children's. And the same in the age difference, as child grow their purchasing habit and style changes.

Ch. 5 - Developing a Global Vision

Starting from a carpenter’s workshop found in a village in Denmark to one of the most famous toy brand in the world. The LEGO has developed different strategies to remain its dominant position in the toy market, also continuing to grow and expand its business around the globe. In 2014, All LEGO Group market regions experienced double digit sales growth while the traditional toy market in most countries grew by low single digit rates.The LEGO group’s long-term vision and ambition on the global market should claim credit for this unprecedented success.

According to the LEGO group’s Chief Financial Executive – John Goodwin, “We estimate that more than 85 million children across the world had a LEGO play experience during 2014. This has only been possible through an ongoing focus on building our capabilities globally during 2014 from manufacturing to sales, as well as developing great products that appeal to children across cultures and geographies.”

To achieve these goals, the LEGO group has been doing a lot to increase its international influence, either directly or indirectly. When the retail sales of LEGO constantly growing in the north america and Europe market, the name of LEGO started to be recognized around the globe. A benchmarking study revealed LEGO’s global name recognition was on par with industry giants like Disney, the team started churning out new products and ideas to leverage the brand’s untapped value. A line of LEGO-branded children’s wear was created and a division of the LEGO Group was charged with pitching book, movie, and TV ideas. LEGO building sets became increasingly complex with more unique components. Especially the office box success of "The LEGO movie", the reputation, brand image and company values are spread all over the world. To continuously expand its global market, the LEGO group established two main office in Shanghai and London in order to manage and develop overseas market; sales offices in Brazil, Turkey and Malaysia have been added to the long list of local presence for the LEGO Group. They are also strategically building supply chain in Asia to fulfill the local supply needs. The LEGO plant in Jiaxing, China began construction in 2014 and is expected to be fully operational in 2017. The manufacturing facilities will be solely supply the Asian market.

The objectives of the company in the future will focus on its core market of Europe and North America, also building global presence in the industry.