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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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  • Number of pages: 2

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There are several ways for LEGO to improve loyalty among various target customer groups

1.  Determine and Solve Customer Pain Points

There are two type of sales involves in LEGO, which makes the identification more complex. The first type is the Business to Business (B to B) sales and the another type is the Business to Consumer (B to C) sales. Through LEGO own sales channel, LEGO club, LEGOLAND and even the collaboration channels, LEGO can has an easy direct contact to consumers. Furthermore LEGO has a systematic collaboration with partner customers (B to B), to ensure quality, get feedback on marketing efforts, overall satisfaction. In order to determine the overall benefit of the relationship to external sale channels, LEGO has set up an annual “Health Check”.

For example, customer's dissatisfaction with delivery orders is one of the problems that LEGO need make an improvement on. Customers always received their packages w late and even some of they received damaged LEGO products. LEGO was needed to find out what was happening or what was the problem that caused this problem, although it was only a small percentage of customers affected. In order to track and identify this problem, LEGO collaborated with Medallia to address customer inquiries and obtain metrics to determine a plan of action. Besides, LEGO decided to send a short questionnaire through emailing its customers when the products were delivered to its customers. This move can be a part of the company's new strategy. The questions asked were about the shipping cost, packaging condition and most importantly is the expected date of arrival. Through this process, LEGO has successfully determined and examined each customer's inquiry. In an example, LEGO found that some of the air pillows used in packing were crushing the contents of the packages. By fixing this problem, customers will be more satisfied when they received the products they bought. Furthermore, it will also gain the customers' loyalty because they will feel happy and safe to buy things from LEGO.

2.  Become A Content Marketer

The LEGO group has collaborated with some famous brands like Star Wars and Cartoon Network to expand its brand. When LEGO established a LEGO toy, it creates interesting storylines to attract consumers to pay attention to its LEGO toys. LEGO toys are sold as broad multimedia packages. Through collaborate with Cartoon Network and establish the online games, microsites and even episodic movies, each LEGO toy series has a fantastic creation. Microsites like “My LEGO Network social networking site” was aimed for kids with general parental and safety and care controls. Besides, other microsites like “LEGO Click” enables the elder hobbyists to demonstrate their Lego creations with photos and videos. Besides, LEGO's group has a clear understanding of their target audience which was written in the LEGO Club Magazine, “Kids still love print.”  One of the feedbacks from the consumers is that they will often tell their children to catch up the online storytelling on the LEGO site to learn everything he can about the characters and their backstories.”

3.  Partnerships and licensing

Licensing is one of the LEGO's marketing strategy. We all know that LEGO has bought the copyright of Star Wars to establish the Star Wars Lego. Star Wars is one of the Disney brand. It is a major profit driver for the company. It also allows LEGO to build a larger fascination for what customers can do with LEGO. Many people are fascinated by the types of Star Wars representations that they can get out of LEGO. It comes back to LEGO being about creative building and creative role-play. Intellectual property, whether it's Bob the Builder or Star Wars, just provides a much richer universe for children. That's the beauty of linking LEGO to other properties. This will makes their existing customers more loyal to LEGO due to its innovation. Besides, this also attract the third target audience for LEGO who are the collectors and fans who want to buy the merchandise and save it for resale value. LEGO isn't just for kids and parents, it's for adults as well.

4. Converting the LEGO Brand from a Product Brand to an Experience Brand

One of the approaches used by LEGO is the customer engagement. It is based on the idea that the LEGO product is far more than just a plastic brick or even a building system. Instead, LEGO bricks represent an experience. Experience brands such as the LEGO brand put as much emphasis on the experience around their products and services as on the product and service itself. The brand is not just what the consumer pays for, but everything that wraps around it. What this means is that the LEGO brick sits at the core of a set of experiences that embrace all aspects of its operation. LEGO emphasize its brand as an experience brand at each turn, including the LEGO Brand Stores, LEGO community experiences, the building instructions in each set, our catalogue, and LEGOLAND. LEGO focuses on understanding its consumers and creates distinct and seamless experiences across all elements of the product and service connected to that product which will improve the consumers' experiences and interactions with LEGO company. As an experience brand, people will talk about its product, sharing ideas, recommending it, and promoting it to friends. Therefore, fans of LEGO help them to market the product. This can improve the loyalty among various target customer groups, but also attract new customers to buy its products.

5. The relationship of the LEGO brand

The relationship of the LEGO brand is linked to uniqueness and innovative products, which drives the children to develop through educational and fun playing. From the LEGO website it is obvious that the LEGO Group wants to offer their customers the best service and company information. On the website the “about us” button provides the customer with information regarding the LEGO Group in general, facts and figures, corporate responsibility etc. Furthermore, the website has a “customer service” part as well as a “parents” section. The “customer service” part provides the customer with basic information on contacts, online shopping support, product recalls, building instructions etc. The “parents” section, on the other hand, informs the parents about different stages in their children's life and offers a whole- child-product-line where products suitable for the child are presented.

6. The reflection of the LEGO brand

The reflection of the LEGO brand should be linked to the way the customers' wishes to be seen as result of the brand. In that connection it would be fair to argue that the LEGO brand has two different customers – the parents and the older affluent children. The parents would like to be seen as a quality-conscious and carrying customers and parents, whereas the children want to play with the newest and coolest products. Additionally, the LEGO brand reflection provides the customer with innovative and educational toys, which may lead to affecting feelings towards the brand.

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