Final-Exam-Part-2

Case Study 1
LEGO Case Study: How to revitalize a beloved brand

LEGO, the iconic Danish toy brand, has inspired creativity and imagination in
children and adults alike since its inception in 1932. The company’s signature
interlocking bricks have become a global phenomenon, transcending cultural and
generational boundaries. However, in the early 2000s, they faced significant
challenges threatening its existence. Our LEGO case study will explore how they
revitalized its brand by refocusing on its core product. Then, they expanded into
new markets and leveraged digital and content marketing.The Challenges LEGO
Faced; In the early 2000s, LEGO grappled with several issues that put its brand at
risk. Declining sales, increased competition from digital entertainment, and a loss of
brand focus due to excessive product diversification left the company struggling to
find its footing. These factors created a sense of urgency within their leadership.
They recognized the need for a fundamental shift in strategy to revitalize the brand
and secure its future.Recognizing the need for change; LEGO’s management
understood they needed to reassess their business approach to overcome these
challenges. They initiated a comprehensive review of the company’s operations,
product portfolio, and marketing strategies. This process led to several critical
insights informing the company’s revitalization efforts.Refocusing on the Core
Product;One key realization was that LEGO had drifted too far from its core product
—the iconic interlocking bricks. The company had diversified its product line to
include action figures, clothing, and various themed sets, diluting the brand’s
identity. They decided to streamline its product portfolio and return to the essence
of its brand: the simple yet versatile building blocks that had captivated generations
of fans.
Simplifying the Product Range; LEGO reduced the number of individual brick
types, making it easier for customers to build with the product while maintaining its
versatility. The company also reemphasized classic themes, such as City, Castle,
and Space, which resonated strongly with its core audience. This refocusing allowed
the company to reestablish its identity as a brand that fosters creativity and
learning through play.Expanding into New Markets; At the heart of the LEGO
case study is a revitalization strategy that involved expanding its market reach. The
company identified untapped potential in emerging markets, such as China and
India, and developed targeted marketing and distribution strategies to cater to
these new audiences. The company recognized the importance of engaging adult
fans. They began creating sophisticated sets with intricate designs and higher price
points.Building a Global Presence; LEGO invested in building a strong presence
in emerging markets, opening new offices, retail stores, and production facilities.
This expansion allowed the company to establish a local presence and better
understand customers’ unique needs and preferences in these regions. By adapting
its products and marketing strategies to cater to local tastes, the brand grew its
brand and increased sales significantly.
Leveraging digital and content marketing; LEGO understood that the rise of
digital technology and social media presented both challenges and opportunities for
the brand. To capitalize on these new avenues, the company embraced digital and
content marketing as essential components of its overall brand strategy.Engaging
with Fans Online;LEGO created an extensive online presence through social media
platforms, directly engaging with fans and customers. They share behind-the-scenes
content, hosting contests, and showcasing user-generated creations. This allows the
brand to foster a sense of community and loyalty among its audience. This
approach helped the company maintain relevance in an increasingly digital
world.The LEGO Ideas Platform;LEGO launched the LEGO Ideas platform, a
crowdsourcing initiative allowing fans to submit their designs for production as
official LEGO sets. This innovative approach provided valuable product ideas and
deepened the brand’s and its fans’ connection. By involving their most cherished
customers in the creative process, LEGO fostered a sense of ownership and loyalty,
further strengthening its brand identity. To illustrate our LEGO case study, click on
the video below that explains how the Ideas program works. Engaging your
customers; In 2021, there were 57 submitted ideas that made the Lego review
stage. What a great example for engaging your most loyal brand fans. To illustrate
our LEGO case study, click on on the examples of the ideas below.
Creating Immersive Digital Experiences

In addition to engaging with fans on social media, LEGO explored new ways to
create immersive digital experiences. The company developed video games, mobile
apps, and virtual reality experiences. This allowed users to build and interact with
LEGO bricks in digital environments. By extending the play experience beyond the
physical product, LEGO demonstrated its adaptability and commitment to
embracing new technologies. To illustrate the LEGO case study, an example of one
of their more immersive experiences is below. This allows their customers to go
deeper into each of their product lines. The Impact of LEGO's Revitalization
Strategy;Refocusing on the core product, expanding into new markets, and
leveraging digital and content marketing proved to be a winning formula for LEGO.
The company’s sales and profits surged, and it reclaimed its position as a leader in
the toy industry. Moreover, they revitalized the brand image, resonating strongly
with new and existing fans, securing the brand’s future for generations to come. Our
LEGO case study showcases the magnitude of the company’s financial growth over
the last 15 years. With revenues skyrocketing from $1 billion to an impressive $8.4
billion, they have achieved an 8x increase, a testament to their financial stability
and success. Moreover, it shows they have achieved a profit margin of nearly 25%
and a profit of $2 billion, indicating exceptionally strong performance.
Tasks:
1. Discuss your understanding on market dynamics, insights and findings with
the case
2. What can you suggest better to have a sustainable approach of advertising,
detailed and specify your creativity to reach more new audience
3. Advertising always stays true with brand’s core identity, established the
Meta-learnings about this case for staying relevant at all times.
Case 2.
1. Prepare your individual narrative and key insights explaining the relevance to
the advertiing
Title: Top-down and bottom-up market size calculation for startups
https://waveup.com/blog/top-down-and-bottom-up-market-size-calculation/

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Case Study 1

LEGO Case Study: How to revitalize a beloved brand

Creating Immersive Digital Experiences

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