The marketing mix of each company must be carefully defined. Indeed, it is the concrete application of the marketing positioning of the structure. The right mix is the one that ensures effective differentiation from your competitors! This is why we offer you here an example of a marketing mix: that of Lego. To do this, we will go beyond the traditional 4Ps: here are the 7Ps of the Danish company’s mix.
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- Lego’s marketing mix is above all based on creativity, an essential value of its tSummary
- Lego, a historic player in toys
- The Lego marketing mix, an example of success
- The diversification of Lego products
- A wide range: very diverse prices
- Lego and its ingenuity: simply exemplary!
- Its various distribution channels are sources of improvement
- Personal relationships are essential for Lego
- At Lego, we personalize as much as possible
- Lego Stores: A Lesson in Point of Sale Optimization
Lego, a historic player in toys
This company founded in 1932 in Billon (Denmark) celebrated its 90th anniversary last April! Its founder Ole Kirk Christiansen quickly designated his leitmotif: to stimulate the creative spirit of children.
After a slow period that led to a budget deficit of 175 million euros in 2003, Lego has since rebounded. In this case, the now number 1 toy recorded record sales in 2020: 3.09 billion euros. This is almost 5 times more than Play Mobil, one of its main competitors.
Today, Lego turns to green. To this end, the group promised an unprecedented investment at the end of 2020. We are talking about best ghost writers for hire here to accelerate its environmental efforts. This could well spell the end of plastic Lego.
The Lego marketing mix, an example of success
The diversification of Lego products
Today, Lego is much more than just a toy manufacturer. Over the years, the group has shown itself to be exemplary in its marketing mix by opting for mass diversification. Its product range now spans several strategic segments.
We obviously find construction games, its historical value proposition. However, the brand has been able to build all kinds of collaborations with other big names in the global entertainment market. It is thanks to this that partnerships with Adidas, IKEA, or Levi’s have emerged.
But that’s not all: Lego has also earned a prominent place in the video game and cinema markets:
- Lego Batman, Jurassic World and Star Wars games have been critically acclaimed.
- The film The Great Lego Adventure was even nominated for the Oscar for Best Original Song in 2015
A wide range: very diverse prices
As for the price, Lego has opted for two pricing strategies. They are as well focused on costs and margins as on the competition. Thus, for reasons of production costs and quality control, Lego displays moderately high prices. At present its range of toys is wide, and this is reflected in the prices. They range from 2.49 euros for the Brick Separator, to 800 euros for the Star Wars Millennium Falcon.
In addition, Lego stands out with its discount system, an effective way to build customer loyalty. In this spirit, Lego has adopted two key measures:
- The world’s most prolific and expansive online merchants and retailers consistently benefit.
- The LEGO VIP program allows the most loyal customers to accumulate reward points.
Lego and its ingenuity: simply exemplary!
Lego’s communication is undoubtedly the most telling example of its marketing mix. It could be summed up in one word: sprawling. As with the development of its products, Lego clearly wants to be present in as many niches as possible.
By collaborating with major brands, Lego increases its notoriety by communicating hand in hand with its partners. The creative character of Lego is also felt in its outdoor advertising. In this sense, the Danish structure appropriates the surroundings of the advertising space to create unique visuals.
Lego can never suffer from a lack of inspiration. He has managed to maintain a solid base of consumers, who are as loyal as they are inventive. The manufacturer has understood this well. That’s why Lego launched its LEGO IDEAS site, a pioneer in collaborative marketing. Since then, other brands, such as La Casa De Papal, have adopted the principle for their content creation.
Its various distribution channels are sources of improvement
Lego is present on all continents. This manifests itself both through physical points of sale and through e-commerce.
As far as physical distribution is concerned, the Danish giant has its own commercial areas. The brand can then proceed with direct distribution. Consequently, Lego has a major competitive advantage: the massive collection of consumer data. This is an unmissable opportunity to refine the customer experience. Thanks to this data, the toy manufacturer was able to improve its market penetration by around 25%.
In addition to this distribution channel, Lego also has the luxury of selling its products from third-party outlets. Indeed, the brand masters the art of merchandising. Its range is therefore to be found in amusement parks, cinemas, or even supermarkets intended for a young audience.
Personal relationships are essential for Lego
Then, the main relational strength of Lego is its employees. Anyone wishing to work for this toy actor must meet several criteria. Diversity is one of these criteria, the staff is therefore rich in very varied academic and socio-economic backgrounds.
Lego made this choice with a view to customer-employee interactions, to improve the quality of service provided to the customer. For good reason, Lego has a global presence: it must employ people embodying this globalized and heterogeneous brand image.
In addition to this, Lego makes it a point of honor to recruit according to the values of the memoir ghostwriters. This applies both to staff close to customers and to executives, for example. The company explains these values as follows: “energetic and positive people, who want to work with children.” Thus, Lego considers that an efficient company is a structure in which everyone is passionate and involved. Another example of a well-executed marketing mix.
At Lego, we personalize as much as possible
The Lego experience is one of a kind, because it’s highly customizable. As mentioned in the relational axis, the employees adhere to the values of Lego, and their employer leaves them a certain freedom. Here, the processes are anything but standardized, as the former CEO of the group says so himself:
I want people to surprise me. I don’t want a place where people do what they’ve been told to do because it creates fear.
“Only the best is good enough”: this is one of the mottos of the Lego group. This says a lot about the importance the brand places on customer satisfaction. For example, this has manifested itself with the advent of digital. If technical instructions are forgotten in the boxes of Lego toys, it is possible to claim them online.
Lego Stores: A Lesson in Point of Sale Optimization
Finally, let’s look at the physical presence of the brand. Lego is a successful establishment in 130 countries, with 170 physical points of sale, and 9 LEGOLAND parks!
Take for example the Lego Store in New York: a typical case of an experiential place. Here, everything is designed to encourage the act of purchase. First of all, how better to embody the Lego brand than with a monumental achievement made of Lego? The Lego construction of the Big Apple Store has nearly 900,000 bricks!
Also, this point of sale is a place of innovation. It allows its visitors to obtain a self-portrait designed with Lego. This offer, which can only be realized on a physical surface, is an unrivaled added value. Finally, the Lego Brick Lab in this store offers a very playful physical experience. It offers the opportunity to transform any real life object into a digital construction.
