Lego targets consumers

Firm's marketing plans focus on engaging with customers through various channels.
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Lego has discovered that the ideal route to promoting its brand is through consumer marketing through channels including its website, catalogue, magazine and Legoland theme parks.

The Retail Bulletin has reported on Lego’s marketing plans from the World Retail Congress in Barcelona.

Speaking at the congress, Matt Harker, vice president of operations for consumer, education and direct at Lego, said: "Demand is consolidating to fewer more-powerful retailers, which chokes us off in conveying our messages.

“We need these retailers in order to get our product out into the marketplace but we're now looking towards using our other channels to communicate more to consumers."

As part of the campaign, the firm plans to harness the growing power of digital channels with Lego-related groups on Facebook as well as through its website which is transactional in 23 countries.

Recently, Lego teamed up with the The Institution of Engineering and Technology to create a new viral game which has attracted more than half a million players in its first four weeks.

In addition, Lego will be communicating more through its 35 company-owned stores, its magazine which has 3.5 million subscribers, its Robotics competitions held around the world, and its Legoland theme parks.

Harker explains: "When we end up communicating on a one-to-one basis then these customers deliver five times the average spend and have a higher frequency of spending.”

Lego’s existing brand awareness has made it easier to gain permission to communicate with consumers: "Fifty per cent of people who buy a product with us have some form of interaction with us and let us market to them."

When these consumers become fully engaged it is thought they recommend Lego to others providing an opportunity to push more people up the firm’s communications pyramid.

Harker explained that the company plans to add 15 new stores this year and is developing two new concept stores due to open in the US in the third quarter.

These outlets will offer teaching classes and further enhance the in-store experience that he says has similarities with that of the Apple stores.

Plans to launch a multi-player online game in 2010 will allow players to "create their own characters, build things, play with others and connect with people around the world.”


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