LEGO Group Situation Analysis - Case Study Example

rеаtivе Briеf and Justifiсаtiоn Name University Company LEGO Group Client LEGO Retail Experience Background LEGO Group currently has 120 stores being an initiative to build their own global network which has seen the group invest heavily. The market for the toys from LEGO Group which depends on online marketing in Australia is gradually diminishing due to dominion of the market by other larger toy makers. Therefore, the purpose of this brief is to demonstrate how the new product line by LEGO Group, referred to as The LEGO Playbox will appeal to the kids and the younger generation which will facilitate to acquiring new customers. Challenge The toy market has been dominated by bigger companies like Mattel Inc. which dominates markets like Woolworths. Therefore, the customers show less interest in the toys by LEGO Group and the initiatives put in place by the group. Communication Objective To develop new and awesome shopping experiences which provides the largest selection of LEGO exclusive offers for enhancement of the brand image. To increase customer retention by 20 % by 2018 through creating engaging unique experiences that are memorable and viral. Target audience Primary audience Children John, a 7-year-old American kid is currently in his mid-elementary level school who has been an active participant in school mind games and puzzle solving. Being raised amongst 3 other siblings, it has presented john with the ability to device new means of entertainment among other general interests to strive for survival amongst the siblings and beat the rivalry. The LEGO playbox will serve as a challenge to him since it is built to imitate a real maze which will sharpen John’s brain for the mind games at school which contributes to the brand slogan of LEGO as oy and pride of building and creation for the kids. Secondary audience Shoppers We are targeting buyers between 22-37 years with an income of an out 50K yearly. These can be psychographically termed as practical romantics who are in love with entertainment through practical activities for their kids. This drives them to engage their kids into practical activities of creating and building through LEGO playbox. This will provide them with the opportunity to see their children break the monotony of television and participate in creating things with LEGO Playbox. Single minded proposition There’s more to fun than just playing: joy of building and creating with LEGO Bricks. Tone Casual Funny. Warmth Inclusiveness Media options Television Print media and signage like posters, newspapers and magazines. Social media platforms like Facebook, Instagram and twitter Budget The advertisement of the LEGO Playbox will most certainly require $4000 for television ads, $3500 for printed media whereas the advertisement over the social media platforms will need about $2500 Schedule The goal of the project is to attain a presentation to the client within a 4-week time frame. Within this time, we will need to focus on showing two full campaigns to the client by packaging it into 4 concept boards. Date: 10/31 initial review by the creative team in which the objectives for target setting will be selected for refinement. Date: 11/07 revision of the reviewed concepts on target setting. Date: 11/14 formal internal presentation and rehearsals for client presentation. Date: 11/21 client presentation. Measuring The advertisement on the Facebook will be measured through Facebook analytics which will demonstrate the number of people clicking on the ads placed over Facebook. The effectiveness of the television advertisement will be measured by considering the purchase rates for the LEGO Playbox as a result of the discounting presented over the television advertisement. Mandatories The LEGO logo Must evoke a call to action amongst the customers Provision of the links to external outlets like social media Justification Situation Analysis LEGO Group is a toy making company based in Billund, Denmark. Having been founded in 1932, the company has developed a network of about 120 stores globally with a famous philosophy ‘good quality play’ that attract kids to the products from the company (LEGO.com. 2016). Brand Background The LEGO Playbox has been in market since 2015 and through its development, fun and play forms the key elements of its existence (Altstiel and Grow, 2016). The underlying strategy of learning and development through playing has enabled the growth in ideas and innovation of the brand which has contributed positively to the consistency in the customers that go to LEGO stores from time to time. Market overview / Industry overview The toy market globally has been on the rise targeting children under the age of 15. In Australia, the toy industry has been known to grow at the rate of 0.1% annually owing to the tough competition. The weak growth rate is associated with the household discretionary income and the consumer sentiment (Altstiel and Grow, 2016). Customer analysis The customers for the toy industry are more driven by the pricing and the quality of the products provided. The credibility in the toys and games made by the group is a key determinant on the purchase behavior of the customers (LEGO.com. 2016). For instance, the customers find the products reliable since the toys and games allow the kids to learn while having fun and not just focused on the fun element of the toys and games. SWOT Strengths The strong brand name allows the company to market their products with ease (LEGO.com. 2016). Diversity in the products provided by the company. Learning experiences involved in the games developed promotes the positive brand perception among the customers. Weaknesses Imitation of the LEGO products by other companies decreases the marketability and reliability of the LEGO products Fast brand switching within the toy market contributed to by the intense competition from companies like Mattel Inc. (LEGO.com. 2016). Opportunities The schools in Australia are allowing the LEGO products to be used in school competitions which is providing an alternative market other than the normal household focus. The emerging trend in collaborative channels like the social media platforms provide a fast market for the products for LEGO contributing to the fast growing market share for the company. Threats The rise in the outdoor games which parents and schools are encouraging the kids to participate in is a threat to the success of the LEGO games which are thought to contribute to obesity amongst the kids (LEGO.com. 2016). The emergence of the social media platforms is providing the kids with alternative forms of entertainment other than the toys and games for the company. Insight (problem/opportunity) The LEGO company is facing stiff competition from other major toy makers that have gained ground within Australia in such major outlets like Woolworths. This has made it necessary for the company to venture into new line of merchandise to attract new customers while retaining the existing ones. Target Audience The brand purchaser targeted by the LEGO Group includes parents and schools. The sole users for the playbox are the kids who are driven by their desire to create and build things using the LEGO Bricks which sharpens their creativity skills (LEGO.com. 2016). Moreover, the influencers include the bloggers and social media users who will be key players in advertising of the products. The targeted audience for the LEGO products are generally both male and female kids aged between 10-15 years and reside in Canberra and Australia at large. Psychographicaly, the audience involves the online gamers who have been recorded to have internet connection at their homes or schools. The behavioral aspect of the audience indicate that the kids prefer active roles that is provided by the LEGO Bricks rather than passive role of television watching (Minnium, 2016). Aim and Objectives Marketing- To create new markets in other Australian states for the LEGO Playbox by June 2017. Advertising- To raise the revenue for the company by 15% through motivating the parents and schools in Canberra to purchase LEGO products (LEGO.com. 2016). Brand Positioning The element of the brand incorporating learning for the kids through developing their creative skills allows the product to gain access to the schools and purchase from parents who would opt to have their kids develop mentally through games and entertainment (Gordon, Vernick and Sukys, 2016). Big Idea The joy of creating and building with the LEGO Bricks brings fun and learning into being (Minnium, 2016). Campaign Idea Media objectives- the fun and inclusiveness in the media packaging will promote the positive perception of the brand by the customers (Altstiel and Grow, 2016). Media selection- printed media and television ads will be utilized Media schedule- provision of magazines and newspaper ads to schools on weekly basis. Budgeting The advertisement is focused on achieving the set objectives and thus it will be important for us to fit the expenditure within a $10,000 budget (LEGO.com. 2016). Evaluation The success and the effectiveness of the various media used in the advertisement will be evaluated in a number of ways. Facebook and google analytics will be used for online ads (Olson, 2014). The frequency of the shows with the advertisement to be subscribed to will be used to evaluate television ads (Olson, 2014). References Altstiel, T., & Grow, J. (2016). Advertising creative: strategy, copy, and design. Sage Publications. How consumer insight makes or breaks a new brand (The Wise Marketer). Thewisemarketer.com. Retrieved 31 October 2016, from http://www.thewisemarketer.com/features/read.asp?id=82 LEGO.com US - Inspire and develop the builders of tomorrow - LEGO.com. (2016). Lego.com. Retrieved 31 October 2016, from https://www.lego.com/en-us Minnium, P. (2016). What’s The Big Idea: The 3 Fundamentals Of Successful Digital Creative. Marketing Land. Retrieved 31 October 2016, from http://marketingland.com/whats-big-idea-3-fundamentals-successful-digital-creative-153747 Olson, J. C. (2014). A Strategic Approach to Measuring Advertising Effectiveness. Measuring Advertising Effectiveness, 337. Sutcliffe, P. (2016). Identify consumer moments and touchpoints that drive growth | TNS UK. Tnsglobal.co.uk. Retrieved 31 October 2016, from http://www.tnsglobal.co.uk/thought-leadership/identify-consumer-moments-and-touchpoints-drive-growth?page=0%2C2 Read More