Chapter 7: Branding and Brand Equity
Lego's Brand Management Journey
Originating in a small Danish carpentry workshop in the early 1930s, Lego has become an iconic global brand synonymous with imaginative play and creativity. Their brand management has been instrumental in preserving this image while evolving to meet changing consumer demands.
Foundational Principles: From the start, Lego's core philosophy has been about promoting creativity and imagination. Every product they introduced, from the earliest wooden toys to the intricate sets of today, aligned with this mission. This clarity in brand purpose has provided a robust foundation for all subsequent brand management decisions.
Adapting to Change: The 1990s and early 2000s were a challenging period for Lego, with intensified competition and evolving digital entertainment avenues. However, instead of resisting the digital age, Lego embraced it. They ventured into video games, collaborating with franchises like Star Wars and Harry Potter. This move allowed them to reach a new generation of children while staying true to their ethos of imaginative play.
Engaging with Fans: Understanding the power of their fan base, Lego introduced the 'Lego Ideas' platform, where enthusiasts can submit design ideas. Sets that garner sufficient public support get reviewed by Lego and potentially go into production. Such initiatives not only crowdsource innovation but also deepen the brand's bond with its community.
Licensing and Collaborations: One of Lego's most noteworthy brand management strategies has been its collaboration with popular franchises. From "Star Wars" to "Harry Potter" and "Jurassic World," these partnerships have allowed Lego to tap into existing fandoms and expand its consumer base.
Consistent Messaging: Despite the many product diversifications and partnerships, Lego's communication remains consistent. Every advertisement, be it for a classic Lego city set or a licensed Marvel superhero set, emphasizes creativity, imagination, and the joy of building.
Educational Alignment: Recognizing the educational potential of their products, Lego has proactively positioned itself in the learning space with products like Lego Mindstorms. These sets introduce kids to robotics and programming, reiterating Lego's commitment to imaginative and constructive play.
Managing Crises: In the early 2000s, Lego faced near-bankruptcy. However, they restructured their operations, refocused on their core product (the Lego brick), and began their journey back to profitability. It's a testament to their brand management that, during this challenging period, Lego never diluted its brand essence to make quick gains.
Lego's effectiveness in brand management lies in its ability to evolve without losing sight of its foundational principles. By continuously aligning products and strategies with their core ethos, while also embracing change and innovation, Lego has cemented its place in the hearts of multiple generations.
Brand loyalty is the long-term relationship brands aim to cultivate with their consumers. Brand management, on the other hand, is the toolkit they use to foster and maintain this relationship. It’s about understanding, adapting, and consistently delivering to ensure that the brand remains front and center in consumers’ minds.
