The Lego Company is said to have started by the Kristiansen family in 1932. Centered on the philosophy that in order to enrich children's lives, Lego is a brand that evokes expression of creativity while simultaneously stimulating the imagination at each and every possibility. According to Lego, the products "are based on this philosophy of learning and development through play" (1). The company is committed and dedicated to creating products that are of high quality and this aspect is something that has allowed them to remain viable in the eyes of consumers for more than 80 years. The idea as noted by Lego is to be systematic with each product. Legos can be "combined in innumerable ways [which essentially means that]" (1), they can be put together in a variety of ways, depending on the individual. As such, the creative possibilities are endless. This is why the company has been able to state that it is unique and different from any other child's toy.
The History of Lego
The Lego Company highlights how the word Lego means leg godt, or play well in Danish. The company is said to have been started around 1932, by Kirk Kristiansen and subsequently, has passed hands throughout the family since then. The prime aspect of the brand is the LEGO brick, which has undergone a tremendous amount of developments throughout the years from the original one that was put forth to the public in 1958 (1). The LEGO brick is centered on the principle of interlocking and this is why the company has been able to state that it is produces creativity within individuals because there are many things that the child can build with the blocks. The management of the company consists of 5 individuals, who sit on what is referred to as a management board, as well as a host of management officials and board of directors. The LEGO brand's values are centered on a specific framework of originality. These values are: imagination, creativity, fun, quality, caring and learning. Regarding the imagination value, the company notes that it strives to produce within the child an extraordinary foundation for creativity - and this can only happen through them imagining when they are working with the LEGO bricks. The creativity aspect is that the child will combine both sides of their brain when using the product. Fun is the experience that an individual has by playing with LEGOs. Quality speaks to the challenge that the company strives to maintain in terms of improving its products and coming up with new and inventive ones. Caring is an aspect that the brand seeks to portray to the customer by making a difference in the lives of children through broadening their perspectives on building. Learning speaks to the experimental dynamic that the company has created by arguing that its products help the world become more inventive and develop new insights and skills (Lego).
A key part of the company is its commitment to building partnerships. The company states that it partners with three types of business: the customer, which ranges from the small shop owner to retailers like Toys R Us and Target, which sell its products. The brand has sought and continues to seek ways it can broaden its appeal and allure to consumers. This means being innovative and known around the world by consumers as much as possible. Another type of business is that of suppliers, which the company works with to ensure that the products are oft eh highest quality and delivered timely to the various consumers for continued success. The company also discusses the intellectual property partners, which is a third group that handles the legal aspects. This can range from the use of products in film to promotional opportunities and other types of partnerships with other companies (Lego). Essentially, the company continually seeks to maintain its viability across these three groups of partners. It can be said that the company is known around the world, and there is problem very few people who have not heard of the brand.
Target Market & Marketing
Through the motto, only the best is good enough, the company targets children and young adults primarily. With products sold throughout the world and offices in the United States, the United Kingdom, Singapore, and China, the company extensively understands the essentials of appealing to as many as possible. It does this through what NewsCred writes as a genius content marketing strategy. The company extensively uses social media to tap into the consumer base that it already has as well as broaden the types of consumers that it receives. It is noted as putting out numerous websites that relate to the types of products that it sells (1). This has helped the company grow significantly over the years since the emergence of platforms like Facebook and Twitter. Prior to that, NewsCred states that the company used content marketing campaigns through television and radio to market its products to consumers (1). The idea is to express the message that of the crucialness of using one's imagination to both the adult and the child. If the child sees the ad about LEGOs and the fun associated with them because of the imaginative aspect, then the company has effectively done its job in the marketing process.
NewsCred highlights that LEGO connects with the customer, which is something that very few brands do. Its content, which includes pictures, videos, community message boards and the like is something that many consumers crave and enjoy (1). Essentially, the company wants the brand to be experiential to the consumer. The concept is to create a deeply, personal experience with the consumer. This is how it has been able to build brand loyalty and maintain its legacy in the eyes of consumers. Additionally, NewsCred states that the consumer is given the opportunity to engage with LEGO at all levels, so there is a communal feel to the consumer (1). This is important to the overall strategy because it shows that the company does not feel itself to be above the consumer, but on the same level in terms of producing magical experiences that acknowledge creativity whenever possible.
Christopher Ratcliff goes on to write that the brand is both contemporary and nostalgic. Adults know the brand because they played with it growing up, and current children consumers know it because of the partnerships the company has with other companies and because of films like The Lego Movie (1). The charm is just too undeniable.
Main Competitors & Other Information
The company does not have any immediate competitors as far as other corporations that make products like it. However, the company does battle with other companies like Mattel, who make products that are also well known. One of the key dynamics that makes Lego so unique is in its quality and level of loyalty from consumers. This is what has allowed it to maintain a family owned feel, despite many companies over the years, who have tried to buy it. If competition was to be stated, then perhaps Mega Bloks, which is owned by Mattel and PLAYMOBIL are the closest rivals. Both of these products are similar to the building concept and the overall elements that are equally as engaging as Lego. Yet, even with the fun that both of these brands cause within children and young adults, they do not come close to Lego.
Conclusion
This paper discussed the Lego Company. Specifically, the paper talked about the history of the company – and how it is family owned, and has been that way for more than 80 years. The paper also explained the powerful marketing strategy that the company uses to ensure that it has a never-ending base of fans and global appeal. The paper also explored the competitors that the company has, and how even though they exist to a certain degree, the company has dominated and continues to dominate in the area of creativity and learning within the toy industry.
Works Cited
"How Lego Builds Imaginative Content Marketing." NewsCred, 2016. Web. 9 June 2016. <https://insights.newscred.com/how-lego-builds-imaginative-content-marketing/>.
"LEGO." 2016. Web. 8 June 2016. <http://www.lego.com/en-us/aboutus>.
Ratcliff, Christopher. "Why is LEGO’s social media strategy so outstanding?." Econsultancy, 4 June 2014. Web. 9 June 2016. <https://econsultancy.com/blog/64955-why-is-lego-s-social-media-strategy-so-outstanding/>.
