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.