Babatunde Afolabi
PR 508: Public Relations and Advertising fundamentals and strategy
Company History
“Our idea has been to create a toy that prepared the child for life - appealing to its imagination and developing the creative urge and joy.”
Although building with LEGO is quick and easy. The creation of the LEGO company was arduous. The LEGO Group was founded in 1932 by a carpenter named Ole Kristiansen. He had an eye for perfection due to being a skilled craftsman. Kristiansen started his company originally making wooden toys. He combined two Danish words “Leg Godt” which means play well and started selling toys under the name LEGO.
Sales were initially slow until Kristiansen’s son Godtfred started helping his father with the business. This helped the family keep up with production until a fateful event happened. A Bavarian wholesaler heard about the wooden toys being built in the small town of Billund. The wholesaler later went bankrupt after Ole built several handcrafted units. Ole decided to sell the toys himself. Ole travelled around Billund selling the toys, thus making the small company popular with local families.
In 1945, a fatal disaster led to an amazing breakthrough. A fire ravaged the LEGO factory nearly making the company go bankrupt. To save costs Ole bought a plastic pressing machine. This allowed the plastic to be mass-produced. The LEGO Group was now able to produce several toy variations. The LEGO Group was able to double its production rate.
A clever idea was touted by Godtfred to use the plastic pressing machine to create bricks. The bricks gave children the opportunity to craft their toys. This meant children could use their imaginations to create and build. This is what made LEGO a staple in several households. The LEGO Group used the success of the plastic bricks to expand exponentially. They built their own airport to help with product manufacturing and eventually started their own amusement park made from LEGO. LEGO is now the 92nd most valuable brand in the world.
Mission Statement
● The LEGO Group wants to “inspire the builders of tomorrow.” They want to help children think creatively and work logically and use their imaginations to create and build a world of wonder. With LEGO bricks the company is fostering creativity. LEGO can allow you to create the world that you desire.
● “A global force for learning through play” is what the LEGO Group is trying to achieve in the future. The LEGO Group wants to integrate play with learning. The use of blocks to create structures. This creates improved motor coordination.
● The LEGO Group wants to make learning fun. Through their fun colors and engaging range of structures, kids and even adults can build remarkable structures.
BRAND POSITIONING
To: the young child with a vivid imagination who likes to try new things.
LEGO is the: toy that will help you build your future.
That: allows you to create your mind’s desires.
That is Because: LEGO has created plastic bricks that can be moulded together to create whatever your mind conjures. Using LEGO, children can use their curiosity to build the world around them. They can explore different possibilities and make almost anything they imagine. Through the highest quality materials, you can engage with logic and coordination to build impossible structures, bringing your imagination to reality.
Statement of Opportunity
The Rebuild the World campaign is the LEGO Group’s first campaign since the 80s. The pandemic made the world stop for over a year. LEGO wanted to tap into the feeling of hope after destruction. They wanted to express that life can be rebuilt with imagination and creativity. The CEO of LEGO stated: “Rebuild The World is all about seeing where imagination takes us and celebrating the natural creativity of children. We want to encourage and help kids around the world to develop and retain these skills as they grow older. With this campaign, we want to inspire people of all ages to unleash their creativity to create a world of infinite possibilities through LEGO play.” “Rebuild The World is a claim that carries a universal value and topicality today. Playing with LEGO bricks combines the possibility to rebuild the currently existing as well as the opportunity to invent something never seen before, offering an infinite tool for children to play and imagine the world. If building is creating, then rebuilding is unlimited creativity and optimism,” says Rémi Babine. The LEGO Group are also attempting to re-establish itself as the premier toy brand for a new generation.
Research
In order to create the campaign, the LEGO group asked the following questions:
● How does playing with LEGO make you more creative?
● How has the pandemic affected you personally?
● Who is our main age group?
● What format should we use to illustrate our campaign?
● Should we use Brick Lego for an advert or use 3D models?
● What are we trying to achieve with this campaign?
Qualitative Research
a. Observation research would be useful for the LEGO Group to attempt. Having kids interact with LEGO toys and actively build something would be a good insight to see how the bricks can be built. Interviews with parents and their children would also be beneficial. Through an interview, you can find the core of what LEGO means to its customer. LEGO can also figure out what emotional tone it wants to harness for its advert.
Quantitative research
b. Survey research would be an appropriate way to achieve desired results. The LEGO Group should send out a survey to people purchasing products on the online store. The purpose of the story is to figure out how customers are using Lego creatively and how LEGO can be more innovative. They can additionally use a survey to find out what toy products are the most popular so they can use them in the advert.
Secondary Research
● Implementing research from other toy campaigns.
● Utilizing forums to figure out opinions about LEGO toys.
● Using netnography to figure out customer sentiments by searching social media interaction the Lego group can figure out what is popular about their product.
● Using Statista to find useful data for the campaign.
Situation Analysis
Internal
● Strengths
- LEGO has a massive global presence they sell to over 130 countries, making them able to leverage economies of scale.
- LEGO has a loyal customer base which means it will continue to dominate market share and earn more revenue. The community help with PR and marketing often hosting their own LEGO events and flexing their creative skills with their creations.
- Innovation LEGO is constantly updating 60% of its catalogue. There is a plethora of ideas the company can conjure up.
- Thanks to the core principles set by the founder of LEGO, the company is strong due to their attention to detail. They emphasize creating the best product every time.
● Weaknesses
- LEGO is getting more expensive due to high licensing fees. If the key dogma of the company is to encourage creativity in children. It is almost ironic that they are alienating working-class families with their prices.
- The cost of material for the plastic used for LEGO is also expensive. An improved deal with manufacturers can help this.
- LEGO has weak intellectual property rights. LEGO can be counterfeited which is a drain on revenue. A parent would rather buy the cheapest product for their child.
● Opportunities
- Most of The LEGO Groups’ customers are from North America. The issue is North America has an ageing population. As Asia and Africa start becoming more advanced people will have more income to consume toys.
- The LEGO Group should put emphasis on learning. The company already has LEGO Education a platform that collaborates with the school system. By collaborating with more schools. Lego would have a new generation of children familiar with their product.
- LEGO has found success in media. Films like LEGO Batman were a huge success. If they build a strong media empire like Marvel, they can tap into a revenue-rich market.
● Threats
- Counterfeits are a huge issue for LEGO. As they try to increase their market share in developing countries it would be hard to combat the influx of counterfeit substitutes.
- Environmental groups are also a problem. As consciousness about environmental issues increases, the LEGO Group might have to pivot out of plastic as it has catastrophic implications for the planet.
LEGO is a powerhouse and continues to remain dominant in the toys market. The issue they face is the product has too many substitutes and it is easily counterfeited. In the future, it might be harder to sell plastic products. It would be beneficial for the company to leverage its media prowess and start developing tv-shows and movies for kids.
Strategic Insights
• Communicating with their audience
- The Rebuild The World campaign is the first campaign LEGO has made in years. It was only fitting to make a campaign that was joyful and inspirational an era in which things broke down. The LEGO Group is trying to communicate that even though the world has broken down, with creativity things can be fixed.
• Putting a focus on creativity
- The LEGO Group is seeing creativity diminish in children. With the onset of the digital age, children aren’t playing with their hands and using their imagination. LEGO has started to be seen as just a toy company; they want to highlight that their product works the muscle that breeds creativity.
• A product for everyone
- The LEGO Group are trying to ween their way out of the image that they are only a kid’s product. The audience for the campaign was not only kids but additionally, it was their parents, the gift givers. LEGO threw in easter eggs that only an older generation would understand. Parents might see this and buy the product for their children so they can have the same enjoyment that they did.
Communication Goals
• To spread the message of the importance of creativity.
- The LEGO Group believes that creativity is dwindling in children. They wanted to send a message to families that enjoy creativity, not just LEGO users. The campaign wants to invite the world to fall in love with the LEGO system. A new spin and perspective were given to LEGO's systemic creativity.
● To influence parents to buy LEGO toys for their children
- The Rebuild The World campaign wasn’t just for kids but it was for parents as well. They sprinkled nostalgic images in the adverts, reminding parents of the joy they once had playing with LEGO. This would incentivize parents to purchase the product for their children.
● To send a message of hope and solidarity
- LEGO wanted to home in on the sentiment of the world. During the pandemic systems and institutions fell apart. LEGO wanted to spread a hopeful message that things can be rebuilt with collaboration and creativity.
Communication Objectives
To have a 10% market share increase in toys by Q3 of 2022
- LEGO waited 30 years to create a campaign for a reason. Although digital technology might lead to a decrease in toy purchases, it does not have to mean LEGO cannot capitalize on this. As other toy brands fall LEGO can increase its market share.
To have a 5% increase in sales by the end of 2021 for ages 28-48
- The LEGO advertising campaign is to primarily get adults to get out and buy LEGO toys for their children. The parents will remember the fun they had with LEGO products and buy them for their kids.
To create a campaign that generates over 2 million views on YouTube in the first 2 month
- The LEGO Group want a campaign that is viral, so they are going to use ads to push the momentum of the advertising video on YouTube. A viral campaign leads to more revenue.
Target Audiences
Children Ages 1-14
Although LEGO does not have an official age range. Ages 1-14 is the main age group for users of the toys. This age group is synonymous with its mission statement which is to “inspire and develop the children of tomorrow.”
Educated Parents
The final decision on who buys the LEGO toy is usually the parents. The parents hold the income to afford these somewhat expensive toy sets. Educated parents usually understand the value of LEGO as they want their children to engage in something that will improve their cognitive ability and creativity.
LEGO Enthusiasts
LEGO has core fans that love its products no matter what age. These enthusiasts often host events and competitions for LEGO. They spend a huge amount of money trying to build the best structures imaginable.
Current Brand Perception
People view LEGO as a toy company that their kids love, or that they used to love. LEGO is viewed as a fun product, thus making people forget that LEGO is one of the most powerful brands in the world. LEGO is also perceived as a way for parents to bond with their kids. Parents can interact with their children while they play with their LEGO’s watching them build their future.
Desired Brand Perception
LEGO wants parents to realize that their toys aren’t just for fun. They want to emphasize that kids learn from using LEGO. LEGO can spark the creativity of what their child will do in the future. LEGO also want its brand to be perceived as more than just a toy. As they branch into the media space, the LEGO Group wants its product to be viewed as an entertainment brand.
Key Message Mapping
To inspire people to rebuild the world
o LEGO is drawing sentiment of the fact that many aspects of life were destroyed by the pandemic. LEGO is sending a hopeful message that things can be rebuilt no matter how bad it seems.
We are more than just a toy brand
o LEGO did not use their bricks in their AD campaign for a reason. They wanted to show that their products transcend toys, but they are also an agent to foster creativity with. Remi Marcelli the SVP of LEGO stated: “We have always considered ourselves part of creative activity. When a child is playing with Lego, they are developing creative skills, even if they are not necessarily seeing it or realizing it at the time. But over time we had begun to be viewed as a toy, a model that is to be built and played with.
Creativity can save the world
o Although creativity is one of the most sought-after skills for companies; fostering creativity is dwindling in schools. The LEGO Group is concerned about this change and wants to spread the message of the usefulness of creativity.
Strategies
• Shift the perception of LEGO as just a fun toy brand
- LEGO want their product to be seen as just more than a toy brand. They want to highlight the fact that their product inspires learning and creativity in youth.
● Create nostalgia in parents which will incentivize them to buy LEGO for their kids
- By throwing in several easter eggs in its adverts the LEGO Group is trying to let parents reminisce on the joy they once had playing with LEGO.
● To re-establish LEGO as the dominant toy brand with a new generation
- Although LEGO is a popular brand, the desire for toys is waning. Kids are more excited about digital products than physical ones. The LEGO Group are making sure their products will not be forgotten by the new generation.
● To make people remember the value of creativity
- The LEGO Group believes that creativity is being lost. They want their product to be synonymous with the concept of creativity.
Tactics
The Rebuild the World campaign is an ad-based campaign that follows different characters solving problems with creative solutions. Here are the following tactics used to achieve desired outcomes for the campaign.
Paid
The LEGO Group created an advert that would be shared in different formats. The company hired a film agency to work on the advert. The campaign includes a film (103, 90, 60 and 30-second versions) which was run on broadcast and in cinemas in major cities such as London, Paris, Beijing, Mexico City, Berlin, San Francisco and New York and all social media channels.
Earned
The campaign was viewed as one of the best advertising campaigns of 2020 and 2021. This meant it generated a lot of positive attention from media groups. Positive articles were written about the campaign by outlets like Forbes, The Drum, and Adweek.
Shared
The campaign was broadcast on YouTube and other social media platforms and created tons of buzz. People shared the campaign on Facebook 22,000 times and it garnered over 8000 retweets on Twitter.
Owned
The campaign was shared on their YouTube channel with over 13 million subscribers. LEGO also utilized its forums to spread attention to the campaign. The company uploaded all the adverts on their website page.
KPIs- Measurement and Evaluation
KPI 1: Quantitative measure, a 30% increase in searches for LEGO
- More searches will confirm that the campaign reached enough people. The LEGO Group wanted attention on their brand
KPI 2: Qualitative measure, an influx of positive news-press
- A good advert will have many people discussing it. The best publicity comes from trusted media sources. If articles like Forbes are writing about your advert people are likely to search for your advert.
KPI 3: Quantitative measure, a 25% increase in social media engagement
- Social media has a snowball effect. The more people engage with the campaign the more it will be organically shared. An increase in social media engagement is often correlated with more followers, which means added brand prestige.
KPI 4: Quantitative measure, a 3% increase in sales
- For a company, an increase in sales is a good indication of the success of a campaign. The LEGO Group wants their goods to be bought by the newest Generation.
Timeline
December 2019: Start research on the campaign.
January 2020: Reach out to film agencies to film the advert.
February 2020: Start planning the advertising campaign.
March 2020: Film advertising campaign.
May 2020: Roll out the first advert on all platforms.
June 2020: Start promoting adverts using social media.
September 2020: Roll out the second advert on all platforms.
November 2020: Pay influencers to share the advert on social media.
December 2020: Roll out the final advert.
Budget
The Rebuild The World campaign was a big-budget campaign. In 2020, LEGO spent 100 million on advertising across all platforms. Because this was their first campaign in 30 years all the advertising budget was spent on the campaign. The 100 million would be broken down into several things. When analyzing other marketing campaigns, I can deduce that 30% would go towards the advertising agency. 40% would go towards rollout on different media channels and 30% would go towards social media promotion.