Preview

Lego Case

Good Essays
Open Document
Open Document
3677 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Lego Case
Integrated Brand Communications
MKT4070

TABLE OF CONTENTS

INTRODUCTION 3

QUESTION 1. (a) Critical analysis of LEGO’s SWOT in 2004 3

QUESTION 1.(b) LEGO’s communication effects and objectives post 2004 considering its SWOT in 2004 6

QUESTION 2. Application of various concepts applied by LEGO as a part of the IMC programme 8

(a) POSITIONING STRATEGY AND POSTIOING TACTICS 8
(b) BRAND NARRATIVES 9
(c) BRAND ENCOUNTERS 10
(d) BRAND COVERSATIONS 12

QUESTION 3. Critical evaluation of LEGO’s post 2004 IMC programme 13

CONCLUSION 16

REFERENCES…………………………………………………..............………..17

INTRODUCTION
The LEGO company corporate brand was created in 1932 and for decades it has acted as a strong umbrella brand guiding LEGO through vase international growth and product innovation. (Schultz &Hatch, 2003). The company however faced crisis in the mid 1990’s due to various brand extensions, which fragmented the LEGO brand. This case study gives an insight into how did LEGO deal with its branding and rebranding issues as well as strategic problems that happened in the mid-1990s and the solutions it implemented with regard to their integrated brand communication programme. The case also provides an understanding of the impact of the solutions on the brand in the long term.
QUESTION 1. (a) Critical analysis of LEGO’s SWOT in 2004
To understand the integrated marketing communications program adopted by LEGO it is vital to do a SWOT analysis of the company as shown in the diagram and explained further:
Famous brand, strong name

Play full Learning

Use of Modern technology

Reputation of brand
Famous brand, strong name

Play full Learning

Use of Modern technology

Reputation of brand
SWOT ANALYSIS
THREATS
Ever-changing market and trends Confusion regarding core values of the company
THREATS
Ever-changing market and trends Confusion regarding core values of the company

OPPORTUNITY
Arrival of New Technologies



References: (c) BRAND ENCOUNTERS Brand encounters can simply be defined as the experience the customers have with the brand or as described by Bitner (cited in Smith et al, 2010) an organization from the customer’s point of view

You May Also Find These Documents Helpful

  • Good Essays

    Looking at current reports on their business, we were able to determine some of the issues the company is trying to resolve, in order to achieve growth and excel them above their competition. By conducting a SWOT analysis, we are able to outline a model that assesses what they need or can do regarding both internal (strengths and weaknesses) and external (opportunities and threats). A SWOT analysis is a simple, straightforward framework that provides direction and serves as a catalyst for the development of viable marketing plans and structures the assessment of the fit between what a firm can and cannot do (internal), and the environmental conditions working for and against them (external) (Ferrell & Hartline,…

    • 481 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Disney's Branding Approach

    • 3513 Words
    • 15 Pages

    De Chernatony and Mcdonald define brand as an identifiable product, service, person or place augmented in such a way that the buyer or user perceives relevant unique sustainable added values that match their needs most closely…

    • 3513 Words
    • 15 Pages
    Powerful Essays
  • Best Essays

    Case Study: Aquascutum

    • 3088 Words
    • 13 Pages

    Kapferer, J-N. (2008) The New Strategic Brand Management: creating and sustaining brand equity long term. London: Kogan Page.…

    • 3088 Words
    • 13 Pages
    Best Essays
  • Good Essays

    Lego Case

    • 1291 Words
    • 6 Pages

    Prior to the Flextronics offshore outsourcing project, LEGO had a very tight control of all the elements of the value chain. Their production plants were expansive and specialized which, in theory, would create a higher degree of standardization. Their Swiss factories only produced DUPLO toys and Technic products, their Danish factory solely produced LEGO System products, and the U.S. facility focused on American demands, while only 5 to 10 percent of the LEGO Group’s total production was outsourced to Chinese manufacturers.…

    • 1291 Words
    • 6 Pages
    Good Essays
  • Best Essays

    The Lego Group Case Study

    • 3243 Words
    • 10 Pages

    Lego bricks still hold special meaning to many young adults who have played with the bricks in their teenage years. I, for one, count among those young adults as I was an avid collector of Lego products myself: whenever there were new Lego products released, I used to nag my parents to buy them for me and promised to be a ‘good boy’. Thus it came quite natural to me that I wanted to investigate the Lego group – the symbol of my childhood nostalgia - as a full case study report for my Strategy for Creative Technology Business class. Established in 1932, the Lego group was the world’s leading toy manufacturer that was embodiment of dream and imagination to children. Parents too, inspired by Lego’s brand image as ‘fostering mental development and creativity for kids’, patronized their products in spite of Lego’s relatively high prices. By the turn of the millennium, however, the changes in the toy industry coupled with expiry on their license, Lego faced huge challenged, reflected in their net loss of 308 million Euros in the early 2000s. Nevertheless, Lego’s exemplarily strategic management practices under its CEO, Knudstorp brought the company back to brilliance and as of 2014, Lego thrives once again as the world’s most competitive toy company. As such as is the case, this essay shall examine Lego groups ‘from riches to rags to riches’ story with a special focus on the strategic management process.…

    • 3243 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Lego

    • 659 Words
    • 3 Pages

    The short-term expenditure to get the sustainable product underway would be greeted with long-term benefits including greater innovation, quality improvement, energy savings, and revenue growth. Developing new manufacturing practices and product design synergizes the eco-efficiency efforts that can result in lower production costs and greater operational efficiencies, as well as reduced shipping and transportation costs. A sustainable product should have the five key elements: Social, Governance, Financial, Health and Safety, and Environment. In which the proposal for Lego Group does have those five key elements, the proposal gears towards all five in developing a plan that removes toxins from their plastics, a sustainable product that lowers the consumption of energy, a product that is safe for the…

    • 659 Words
    • 3 Pages
    Good Essays
  • Better Essays

    LOGO case study

    • 2465 Words
    • 9 Pages

    The essay is a strategic analysis for LEGO Group. LEGO Group is a famous toy company in the world, which established in Denmark. LEGO Brand is not only the familiar logo, but also the expectation. LEGO acts as a guarantee of quality and originality. LEGO’s core values are imagination, creativity, fun, learning, caring and quality. The essay will show strategic analysis by identifying the industry, analyzing general and industry environment, listing resources and capabilities, analyzing the company’s core competency, SWOT, current strategies. Then, giving the key issues. Finally, the essay will recommend the business-level strategy.…

    • 2465 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Lego Case Study

    • 1248 Words
    • 5 Pages

    Advances in the field of information technology and introduction of new hi-tech form of entertainment such as tablets and gaming consoles had left Lego trailing in the entertainment field. Jorgen Vig Knudstorp was appointed as the CEO to revamp the company’s business process, organization structure and information systems. Knudstorp was quick to act and first made changes in the company’s production process. He encouraged designers to use the unused components in development of new products and design, thus reducing the number of unused components and reduced losses as the cost of production of each unit was very expensive. Lego created a new strategy to broaden the product range and target a new customer segment. Earlier Lego used to develop products which primarily targeted boys; with this new strategy they started developing products keeping a larger segment into perspective. They started developing products based on movie themes. Most drastic changes came in the organization structure at Lego, switching the employee pay structure, providing incentive for innovative product designs. Lego also started developing video games thus targeting a new segment of customers. All these changes in the business aspects of the company led to an increased revenue, increased demand and growth in the number of employees. Development of new product based on the internet, addition of new employee and inability to meet the consumer demands led to need for a new advanced and upgraded system which would fulfill all the above mentioned. Lego developed a new modularized and standardized architecture for their information system, which they could easily expand and add functionality and capacity. The latest IT infrastructure in the organization enabled the employees to become more creative…

    • 1248 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    The Lego Case

    • 1010 Words
    • 5 Pages

    2.What are the key challenges in maintaining a relationship like the one between LEGO and Flextronics.…

    • 1010 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Kapferer, J, N. (2004). The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term, London, Kogan Page…

    • 7424 Words
    • 30 Pages
    Powerful Essays
  • Good Essays

    Lego Swot

    • 889 Words
    • 4 Pages

    We used the SWOT-analysis on the program made for children by Lego named Lego Education and Lego Education’s official homepage.…

    • 889 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Lego Case Study

    • 1831 Words
    • 8 Pages

    Beginning with strategic position the LEGO group faced different objectives which influenced the development of strategy. The level of technology and preferences concerning materials changed over the time and the company was able to found a niche market for LEGO movies and created new innovations like plastic bricks. Also - like in all markets - the internationalization has affected the strategy of the company. They entered new markets, opened markets in South America, the US and Asia and negotiated with retailers over there. Apart from opportunities, threats which were the oil crisis, financial crisis, competitors and the development of customers need, LEGO needed to react and change or chose different strategies. While the oil and financial crisis occurred, LEGO invested money in new equipment, entered new markets and launched new products. For that reason they were able to overcome these difficulties at that time. Moreover they changed their traditional strategy which included their wooden toys to an innovative strategy with plastic bricks and electronic features to adapt themselves to the ‘new’ age. Also the competitors were a reason for them to develop their strategy. To stay competitive LEGO for example hired the young innovative CEO JØrgen Vig Knudstorp and sold the LEGO theme park to Merlin Entertainments Group to be able to focus on their core product. Within their strategic management the company was always willing to take risk which is until now one of their strength. Moreover the popularity of their company and the popularity of movies like Star Wars helped them to create new products and to develop their strategy in a more modern way through conquering partly the movie industry.…

    • 1831 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Lego case study analysis

    • 1354 Words
    • 4 Pages

    By the end of 2003 Lego was already facing crisis owing to dipping profits and declining market pool for toys. Lego had planned to expand into markets beyond building toys and needed huge investment to be made in it. But it found difficult to compete when fad players and other toy manufacturers were giving them stiff competition in a market that already was supposed to be giving lesser returns every year. This was mostly due to factors out of the control of Lego and other toy companies because, firstly, a research suggested that the demand of children who were primary customers of these companies were changing rapidly to fashionable and electronic products. They had lesser attention span and looked for instant gratification, and were lesser inclined to play with toys involving physical activity. Also Lego found it difficult to be competitive when its manufacturing base was in European markets while toy companies were moving to Far East and Middle East where labor was comparatively cheaper.…

    • 1354 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    The study explores the various components and problems of corporate brand experience in an internet setting .Corporate Brand Experience (CBE), which is a source of a company’s added value could be and effective way to position a corporate brand in relation to the overall corporate marketing strategy. However, the concept of CBE has attracted very little attention from previous research; herby our understanding of what the concept is and how to work on it is limited. In the past the brand research was mainly focused on the conceptual understanding of the brand itself now it has shifted towards CBE. CBE is important because it is not dependent on once level satisfaction but it also dependent on the values of…

    • 1006 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Lego.Com

    • 1621 Words
    • 4 Pages

    Lego Mindstorms The non-commercial website Lego.com has been an enormous success providing Lego with a strong presence on the Internet. However, implementing a website capable of handling sales transactions requires a great deal more than a non-commercial site. The firm has implemented an ERP system which may provide some technical support for the website. The details of the ERP system are unknown at this time; however, the goal of implementing the system was to optimize the supply chain from production to distribution, which will be a significant opportunity for the E-Commerce project. Another important consideration is incorporating the ERP system into the E-Commerce transactions so that separate systems and processes are not necessary. The Lego company enjoys worldwide brand recognition; ranking 5th in the global toy market behind such giants as Mattel Hasbro Sega and Nintendo. The Lego.Com website is among the top 10 sites for children. Both of these factors represent a significant strength for the firm over competitors. The firm has traditional sold to retailers and other middlemen and has little experience in direct consumer sales. This has been the case in the past the typical buyer of Lego’s products are not the consumers’ of the product. The firm currently generates 5 % of total sales from the catalog sales of its products. The catalog operations may provide supporting resources for direct sales logistics and experience in direct consumer sales. The firm has both financial and employee resources to support the E-Commerce implementation. Lego’s philosophy underlies all company activities and supports to a large degree their branding strategy. The Lego vision “Idea, Exuberance and Values” requires that all Lego products stimulate children’s imagination, creativity, and are high quality products. The LEGO MINDSTORMS products as all products in Lego’s offerings align with the firms overall philosophy and represent a strength for the company. However, the…

    • 1621 Words
    • 4 Pages
    Powerful Essays