Lego Case

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  • Topic: Lego, Marketing, Legoland Windsor
  • Pages : 12 (3677 words )
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  • Published : April 27, 2013
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Integrated Brand Communications
MKT4070

TABLE OF CONTENTS

INTRODUCTION3

QUESTION 1. (a) Critical analysis of LEGO’s SWOT in 20043

QUESTION 1.(b) LEGO’s communication effects and objectives post 2004 considering its SWOT in 20046

QUESTION 2. Application of various concepts applied by LEGO as a part of the IMC programme8

(a) POSITIONING STRATEGY AND POSTIOING TACTICS8
(b) BRAND NARRATIVES9
(c) BRAND ENCOUNTERS10
(d) BRAND COVERSATIONS12

QUESTION 3. Critical evaluation of LEGO’s post 2004 IMC programme13

CONCLUSION16

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

New growth opportunities

OPPORTUNITY
Arrival of New Technologies

New growth opportunities

WEAKNESSES
Difficulty in managing program

Unorganized supply chain

WEAKNESSES
Difficulty in managing program

Unorganized supply chain

STRENGTHS
STRENGTHS

One of the greatest strengths of LEGO is that it is a widely, well-known brand. This has given it the recognition it needs to attract customers. Moreover, it employs inventive technology to fulfill the company’s objectives in line with its core values. Despite having many competitors and substitute products available in the market, LEGO still remains the best choice in children’s construction toys as it uses the modern IT to benefit its products from latest programs and systems. This gives them the edge of producing cost productive products that are strong and reliable. LEGO is the fourth-largest toy manufacturer the world and LEGo.com is amongst the 10 most visited children websites. In the run up to 2004, LEGO’s weaknesses can be seen as two fold. Firstly, it has failed in the area of market by not understanding its customer needs which may be seen as the most crucial part of the marketing concept. An example can be made of the ‘explorer range’, which failed to work out in the market for potential customers as well as current, loyal customers. Secondly, in the run up to changes in 2004, LEGO failed to put into operation its business power and potency majorly overlooking all the planning put into advancing the business. This can be seen in effect in the modern actions carried out by LEGO, such as programmable parts for its Technic range, dated back to 1986 but the conflicting disappointment can be seen in its failure to react to further modern technological developments in the manufacturing process such as CAM and CAD as well as product developments. Moreover, the supply chain was very chaotic which resulted in poor customer service, giving LEGO losses in four out of seven years between 1998...
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