Dicuss about the Lego Bricks and the Market.
Lego can be simply defined as ” I put together” or assembling. It has got overall appeals characterized with appealing features which take the brand into the appealing territory. In 1932 Danish carpentry established LEGO existence. The company has progressed further in the toy industry and has been significant in the 21st century. The company is privately owned and engages in the production of other products such as the Lego board games, the Lego video games, and the films. The company was started in 1916 by Christiansen who initially purchased a woodworking shop; initially the shop was used in the construction of houses and furniture. The building was built afresh when it ignited with fire and even broadened it further to increase production capacity by Ole kirk. The piggy banks were the pioneers in the world of toys by Ole Kirk of which these were wooden toys. The modular truck which was the first to be produced could be broken apart into pieces and reassembled again. The major material used was self-locking building blocks which were designed by Paige. He used the traditional wooden blocks that could be locked upon one another. The innovation that led to popularity was the manufacture of the first watch which automatically changed the date once it was dialed. The unique feature enabled the company step a mile ahead and gave the company global attention that it deserved at this particular time in 1953. In 1954 as it has been depicted by LEGO masters saw the undertaking of the manufacturing the third type of toys, these wrist toys had the capability to move by themselves when attached together appropriately.
Rolando said that buyers of these toys were the class of people who kept on travelling from one geographical location to another with different localities” (Evian, 2009, p.134). The elite business class had a preference for this watch as it could give them an option of changing the time zone during a flight. In 1971 LEGO began to target girls by building dolls and furniture products. The company preserved its methods of manufacturing in the manufacturing department and facilities which could be accessed by restricted staff only. The jewelry products were used to entice young girls and entice them thus makes them become part of the clients in the company and soliciting the parent of the young girls to buy the toys. The company had a special research and development facility which was used to preserve the unique methods of production and help retain confidentiality. The ever innovative manufacturers made another huge innovation of the brand of toys which was characterized with an automatic part on the dial as it has been evidenced from the builders. A LEGO production plant was opened in the United States in Enfield. The moving parts such as gears, cogs, differentials were used, axles and universal joints which facilitated the construction of automobile parts with pinion steering. In 1979 the company diversified its activities into space and created the Lego space sets such as rocket runners and space ships.
The last but not the least innovation of the company took place in 1960 this was the year that educators noticed the productive feature to children by use of the Lego products. There was an increase in creativity and problem-solving skills among those who used the toys and this could greatly enhance the problem-solving skills in mathematical subjects and other subjects which require critical analysis. The teacher has seen the need to use Lego bricks in classrooms for a variety of reasons. In 1990 the new design was produced for advanced builders and gave a range of three model team sets including a race car and an offload vehicle. The Lego Billund gets more than one million visitors every year. This achievement pushed it forward in the early 90’s and in terms of coping with the technology. The owner by the name Hans Wildorf offered to replace all the watches of the pilots that had been destroyed during the world war two. The watches had been confiscated and needed replacement hence all kids LEGO bricks to replace the inferior toys The strategy adopted of volunteering to replace all the confusticated trucks and cars by other companies gave and raised the morale among the builders especially Ole kirk since some people did not believe that the company could make such an important type of bricks.. The founder of the company Christiansen has worked hard to the extent of conceiving other companies which are the subsidiaries of the company and contribute to the overall profit of the company. The Lego group became one of the top ten companies in order to create a product for authorized dealers that offered reliability. At the same time, the product was able to offer dependability with an affordable low price. Its existence in Europe has given it popularity and notable with attaining of the top ten positions.
The modification is a continuous process with standardization of electrical components and systems. The company made motors and trains ranging 9V to bring the company into line with the rest of the systems belonging to Lego. The duo train and the parrot shaped scooped Lego pieces off the floor. The material could not be easily damaged and not influenced by the harmful rays and have a unique feature that enables it to resist scratch and cracking. “Jack said that the methodology of marketing used by the company is the use of ambassadors , in the case of Lego manufacturers the company uses only one individual to act as the ambassador of the product to specific demographic and groups of consumers” (Schimdt, 2001, p.243). In the late 1990s the company brought a new series of product aimed at a part of demographic with specific features to suit only specific people. Boys like the technical pieces and the moldings which were the features of the new set. In 2003 Lego produced a new set of a product named the click it aimed at girls because of the plastic features which it had. Customized jewelry made of plastic. Currently, the manufacturing is done in Mexico since 2004 Sales increased to 32 percent due to the hind introduction of the star war games and the Indiana Jones themed games. In 2008 sales increased by 18.7 percent in the whole world. American sales were linked tithe availability of licenses which played a bigger role in the American market than overseas. The Royal dutch shell engaged and renewed its contract with LEGO after using its logo on its products from the 1960s. The critics had some messages towards the reunion and especially green place criticised the joining together of the two companies. It received ten highest recorded openings for an original animated movie. However, Lego refused to sell directly to partners with political intentions especially the Chinese communist government who had made the order but it was declined. The Chinese artist Wei Wei was not allowed to access the company products on claims that the political intentions could lead to malicious damage. This led to a heated debate where the Lego fans offered to donate the bricks to Ai Wei Wei instead. The customers are familiar with the products and have been acting as the company ambassador sand represents the brand by purchasing. In the consumption of products and services they actively participate by sticking to the same brand and type of toys without changing the taste. The Lego movie computer animated adventure comedy movie which was produced in this particular brand has been in a complicated situation because in 2002 it shifted its line of production to a more diverse range in electronics. “The company said through a local magazine that it was convinced that it still has a long career ahead and that he had all the qualities that were required to continue to mark the history of the brick industry”. The brand is committed to accompanying him in his new challenges. “Wallen said the association pays tribute to the exceptional stature of Lego and the leading role he plays in forging the sport's global appeal. It also contributes to a joint commitment to the future” (Robert, 2001, p.176). Lego has made several contributions the society through offering sponsorship programs which include: Sydney and Rolex fast net race. The award for Enterprise program which supports the individuals whose work focuses on helping the community. The projects are technology based in the field of science, health issues, the exploration, health and cultural heritage of people. The young Laureates program provides sponsorship to young innovators between the ages of 18 to 30. The Rolex gifted and protein Arts seek talented artists around the world and connect them with talented masters of Arts. The brand has been associated with terms of high quality, powerful, elegant and prestigious toys. The buyers preferred the company due to the looks which were outstanding. Girls are known to like shiny things and this contributed too many customers into the company. The other type of customers was the wealthy people who preferred the luxurious toys over the others for their quality. Older people have the knowledge of identifying the value that Lego had and in 2011, $ 1 million was the value attached.
Challenges Faced by Lego Bricks Company
The challenges that face the production or the existence of competitors such as Royal Dutch Shell are the major competitors of the brand and the last is the Sony the world most expensive producer. Shell uses a form of selling where the company has been licensed to sell its watches online and in stores all over the world, that is a blow in competing towards the rival
The challenge that it has to compete with companies which are ten times its size, big companies cannot be compared with any other smaller in a global perspective. The labor costs incurred by the company are also a detriment because the employees of the entity have to be remunerated through incentives and wages for workers to boost their morale and maintain brand loyalty to customers. The challenge that consumers disregard hit quality of the product and exclusivity, they do not consider it as the top brand and hence has their preferences on other brands.
The counterfeit that is as a result of the wide scope of variety have damaged the equity and pose a risk to the brand. The fact that the internet has made it easier for access to the brand has enabled fake to access and a number of companies sell the counterfeit bricks
Villegas said there are opportunities and ways of separating from competition from other companies that are already in the market by using keen observation and analysis” (Villazon, 1992, p.110). Lego has incorporated new classic logo which was designed by creative graphic designers hired by the management to distinguish and give the new title by use of the new logo. The other unique feature which is easily identifiable is the big face which is visible from a distance, the large surface area is a good attribute since there is easier reading thus the marketers can penetrate the world and beat other small companies.
The younger generation does value Lego bricks the different way the older generation did value sometimes back. This limits the number of consumers who are available for the purchase of the commodity. The formula that was used does not suit the millennial generation. Lindsay proposed the need for extensive research to be done to determine the choice and the design that will be accepted by the millennials as they age and grow into the age of old consumers” (Buss, 2005, p.256)
The existence of other goods that compete for the same wallet with the product such as clothes, shoes, and handbags is a challenge to the well-being and selling of brick toys. There is strategically tight control on the distribution channels and production levels thus creating a sense of prestige among the rivals and also exclusivity in the minds of consumers.
Solution to Challenges
The company has never licensed its name and it has always kept the brand undiluted, there is no multitasking or engaging in the production of other commodities as it focuses only on the main brand. Hess said that there is careful selection of event sponsorship and a good choice of brand ambassadors gives the competitive edge to cut through the heavily cluttered industry” (Hermann, 2000, p.198). The name Lego is well established and it does not compromise the integrity of the brand since it uses carefully selected marketing methods and communications to introduce itself into the entire world. There is a notion that acquiring a Lego product represents a milestone in one's life hence the status have been highly elevated to the meaningful standards.
The other solution is GIRLS are the majority purchasers of jewelry since they are interested in unisex mechanical toys rather than feminine styled products. This is a great opportunity for the company as it finds a ready market that has not been established before.
The castle made from 400,000Lego has been the latest achievement measuring .5metres and 5.3 meters. In the year 2009, the company made a paradise lines a large utilitarian number target on girls. However, there are features that gave it a female angle such as the floral dial design.
To combat the issue of counterfeit, Lego has maintained its distribution by restricting the sale of commodities over the internet. The exclusive online store will retain confidentiality and originality of the brand where only official e- retailers and authorized people and buyers can access it. The company has been offering sponsorship to the anti-counterfeit coalition and sues companies that advocate for counterfeit through selling them via the internet as well.
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Henry, W. E. (1987). The World of Lego Toys. Texas publishers New York: American press.
Robert, K.F. (1932 About us’ LEGO’ the original publisher European press.
Warren, P. T. (2000) "Brick by Brick: The Lego Story". Wisconsin publishers Newyork press
Schwartz, N. S. ( 2009). "Turning to Tie-Ins, Lego Thinks Beyond the Brick". American publishers The New York Times press.
Gettell, O. G. (2014). "'Lego Movie' a colorful, outside-the-box adventure, reviews say" Los Angeles publishers American press.