Evaluation of the product positioning strategies of LEGO- By Dr. Hasan.

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Evaluation of the product positioning strategies of LEGO:


A description of the offering for evaluation:

LEGO's customer-centric approach, a resounding success, is underpinned by a profound understanding of diverse customer needs (Liu et al., 2024). The company's strategic expansion of its product range to cater to various demographics, including LEGO DUPLO for younger children, LEGO Technic for advanced builders, LEGO Friends for girls, and LEGO Education for classroom learning, is a testament to this success (LEGO, 2024).

(Source: LEGO, 2024)

LEGO uses content marketing strategies to meet customers' needs using a systematic and controllable approach (Liu et al., 2024). Here are some of the offerings provided by LEGO such as:

a)  LEGO life and ideas: LEGO has ingeniously fostered a sense of community, encouraging customers to share their experiences (Holland & Wise, 2023). Their Facebook page serves as a platform for collecting customer information and enhancing performance (LEGO, 2022). The LEGO community actively contributes to innovative product design, with users sharing creative ideas for new products, making them an integral part of LEGO's success (Isa & Liem, 2023).

b)      LEGO Boost: LEGO's dedication to education is prominently displayed in its products (Holland & Wise, 2023). For instance, LEGO Boost is not just a toy but a tool that teaches children about coding and programming (Liu et al., 2024). The company's microsites and YouTube channel further amplify this educational value, providing resources and training programmes that help children develop creative and problem-solving skills (LEGO, 2022).


(Source: LEGO, 2024)

Lego also offers theme parks such as LEGO Land, which is a brand name worldwide in over 50 countries. It has a wide range of toys, which are multi-coloured interlocking blocks made of plastic (Liu et al., 2024). LEGO uses high-quality products to ensure the safety of the children. Lego encourages goal-oriented play and problem-solving skills in small kids to enhance their brain activity (LEGO, 2024). Also, Legoland theme parks are trendy tourist destinations and offer a variety of rides and entertainment (Liu et al., 2024). LEGO brand has also diversified into video games, TV and movies, merchandise, etc. Lego has a top-of-the-mind brand recall owing to TVCs and extensive advertising via online channels, social media, etc. (LEGO, 2024).

 

A description of the risk, need or problem for offering addresses by LEGO:

Imitation of products and brand names is LEGO's primary concern (Liu et al., 2024). LEGO operates in a highly competitive market with a risk of brand switching and losing market share for its online games. LEGO also faces challenges from the changing preferences of children and their parents towards physical toys compared to online learning tools (LEGO, 2024).


A description of how the offering addresses it by LEGO:

Although LEGO has implemented its successful content marketing strategies, it needs to focus more on delivering customised solutions with greater collaboration with its key stakeholders (Liu et al., 2024). LEGO needs to focus on more competition so that kids can have more opportunities to join the LEGO community (Holland & Wise, 2023). LEGO must also create a good platform that uses the latest technology (Isa & Liem, 2023). For instance, many consumers complained about their images as they are harder to navigate on mobile devices (Liu et al., 2024). Therefore, using virtual reality or augmented reality features, they can gather ideas from their users to develop personalised content to meet the diverse preferences of their customers (LEGO, 2024).

(Source: LEGO, 2024)

An Evaluation of whether and how you can strengthen your position. (For example, do you need to narrow the focus of your advertising to just 'one thing'? Do you need to focus more on explaining the problem, risk or need that your product fills?)

  1. LEGO needs to strengthen its position by creating more opportunities for Kids to share their experiences (Isa & Liem, 2023). They need to focus on advertising ‘one thing’ by creating a LEGO community where students can share their experiences. LEGO can organise competitions in schools for children so that kids have a strong affinity for the game (Holland & Wise, 2024).
  2. LEGO can diversify into other segments so the brand can continue growing. LEGO can demonstrate more branding exercises to reach out to newer segments (Isa & Liem, 2023). Using storytelling and emotional appeal could create differentiation in their product positioning strategies (Liu et al., 2024).
  3. LEGO can use the latest technology, such as Virtual reality (VR) and Augmented Reality (AR), to give more interactive experiences to its customers and improve its product offerings (Holland & Wise, 2023).


References:

Holland, T. and Wise, B., 2023. Platform rhetoric and fan labour as the building blocks of LEGO ideas. M/C Journal-A Journal of Media and Culture, 26(3), pp.1-10.

Isa, S.S. and Liem, A., 2023. The impact of LEGO and analog objects in co-creating and prototyping ideas. International Journal of Design Creativity and Innovation, 11(1), pp.1-25.

LEGO, (2024), Content marketing strategies of LEGO, [online], adapted from https://blog.contactpigeon.com/lego-marketing-strategy/ [accessed on 24.02.2024]

Liu, R., Yang, X. and Ye, Z., 2023. Storytelling: An Emotional Branding Approach Based on Consumer Experience--The Case of LEGO. Highlights in Business, Economics and Management, 19, pp.280-285.

Location: London, UK

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