Lego's key strengths may be seen as coming from both its brand recognition and its ability to use innovative technology without moving away from the company's core values. Whilst there are many other competitors in the toy or children's entertainment market Lego remains the brand of choice in the field of construction toys despite the fall of other long term historical brand such as Meccanoand the rise of alternative substitute products such as video games. (Baines, 2007)
Weakness
Lego's key weakness in the run up to 2004 may be seen as two fold. Firstly the company has failed in a key area of the understanding of marketing in regard to understanding the needs of their customers which may be seen as the focal point of the marketing concept.
Opportunities
The opportunities and threats to Lego in the run up until the end of 2004 may be seen as indivisibly linked representing a threat or opportunity based upon Lego's reaction to the element hence they will be considered together.
Threats
The largest threat to Lego may be seen as the changing nature of the market in the run up until 2004. Whilst Lego has remained the market leader in construction toys there must be the consideration that for a large part there has been a decline in the overall market for traditional toys has children have increasingly substituted to alternative forms of entrainments largely in the electronics sector.
b) LEGO`S communication effects and communications objectives- 2004
The company is founded on the philosophy of 'good play'. Good play according to LEGO enriches a child's life - and its subsequent adulthood. Therefore, the basic principle of LEGO which will be reflected on its global communication strategy is centered on 'learning and developing through play'. (Duncan, 2007) The marketing communications message that will be sent to the target audience for the global marketing communication strategy is 'learning and developing through play'. This message will include the different attributes of the LEGO brand namely creativity, innovation, fun, play, and imagination.
QUESTION 2
a)Positioning Strategy And Positioning Tactics/Tools
LEGO talks about its brand as a responsibility. They feel responsible for the expectations people have of their products. LEGO's core values have remained the same for years: Creativity, imagination, learning, fun and quality. They want to make a positive difference; meaning the theme 'war' is unacceptable, they much rather offer you adventure. It's that combination, connecting the organizations identity with its behaviour, that LEGO can use to maintain or even expand its position in the market. (Alysen, et al 2007)
b)Brand Narrative
LEGO's brand name is based on the Danish leg godt, which means “play-well”, and was founded in 1932 by Ole Kirk Christiansen who developed the product based on an English patent for “Automatic Binding Bricks.
c)Brand Encounters
But it took him years - until 1958 - to completely translate his vision for a creative toy to a patent of his own. After receiving the patent, and together with his son, the LEGO company was ...