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    Lego

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    Adil Chaudhry
    LEGO struggled in the early 2000s with unpopular toys outside of its core brick business. A new CEO, Jorgen Vig Knudstorp, refocused LEGO on its plastic brick toys in 2004. LEGO enhanced customer relationships by involving customers in product development through focus groups and crowdsourcing ideas with programs like Cuusoo. This customer-centric approach helped LEGO successfully revive its brand and launch profitable new products tailored to customer interests.

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    Lego

    Uploaded by

    Adil Chaudhry
    110 views1 page
    LEGO struggled in the early 2000s with unpopular toys outside of its core brick business. A new CEO, Jorgen Vig Knudstorp, refocused LEGO on its plastic brick toys in 2004. LEGO enhanced customer relationships by involving customers in product development through focus groups and crowdsourcing ideas with programs like Cuusoo. This customer-centric approach helped LEGO successfully revive its brand and launch profitable new products tailored to customer interests.

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    LEGO struggled in the early 2000s with unpopular toys outside of its core brick business. A new CEO, Jorgen Vig Knudstorp, refocused LEGO on its plastic brick toys in 2004. LEGO enhanced customer relationships by involving customers in product development through focus groups and crowdsourcing ideas with programs like Cuusoo. This customer-centric approach helped LEGO successfully revive its brand and launch profitable new products tailored to customer interests.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    110 views1 page

    Lego

    Uploaded by

    Adil Chaudhry
    LEGO struggled in the early 2000s with unpopular toys outside of its core brick business. A new CEO, Jorgen Vig Knudstorp, refocused LEGO on its plastic brick toys in 2004. LEGO enhanced customer relationships by involving customers in product development through focus groups and crowdsourcing ideas with programs like Cuusoo. This customer-centric approach helped LEGO successfully revive its brand and launch profitable new products tailored to customer interests.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 1

    LEGo: Successfully Reviving the Positioning Strategy and Value Proposition off rapidly the following year.

    In the absence of those blockbusters, LEGO discovered how unpopular, unprofitable, and “non-core-
    like” in terms of brand identity its other toys were. The future looked far from splendid when the
    company brought in former McKinsey management consultant Jørgen Vig Knudstorp to run the
    company as chief executive. In order to get back on track again, Knudstorp started to redefine the
    company’s positioning strategy in 2004 by focusing its approach and returning to the core of its business
    —the plastic bricks. More importantly, the company started to reconnect with its customers and listen
    to them again. Instead of selling the same standardized products to their customers like in the past, The
    LEGO Group changed their positioning strategy and value proposition by enhancing customer
    relationships and involving them in order to better tailor products to their specific needs. LEGO started
    testing new product ideas during the product development process by using focus groups for children
    and adult fans of LEGO (AFOLs). A recent example includes Cuusoo, just one of the company’s many
    successes in crowdsourcing ideas after the year of turnaround. Launched in Japan in 2008 and globally in
    April 2011, Cuusoo has invited users to submit and vote for ideas for new LEGO sets. If a design wins
    more than 10,000 votes, LEGO reviews it for possible production; if the design is developed and
    launched, its creators get a 1 percent cut of the product’s total net sales. In 2011, a Cuusoo concept for
    a LEGO set based on online game Minecraft racked up 10,000 votes in just 48 hours, compelling LEGO to
    announce production of the set. Only six months later, LEGO Minecraft Micro World hit the market. The
    unifying purpose behind all subsequent moves has been to focus and structure innovation and customer
    orientation as key elements of the value proposition, taking ideas that were “obviously LEGO” and
    making them profitable within a short time. LEGO also returned to Christiansen’s idea of a “system of
    play” when it cut the number of pieces it made in half, keeping only those “universal” pieces that were
    used in many different sets, thereby leveraging economies of scale and condensing the over-diversified
    product portfolio. The majority of its revenue still comes from refining classic LEGO lines such as LEGO
    City and LEGO Star Wars, licensing more recent mega-hits such as Lord of the Rings, and launching
    innovations such as LEGO Friends for the girls’ toy market in 2012. LEGO continues to experiment with
    new offerings. For example, through its partnership with Chicago architect Adam Reed Tucker, it
    developed its Architecture line, which encompasses reproductions of iconic buildings rendered in LEGO.
    Additionally, the iPhone game Life of George, which was launched in 2011, is a mash-up of digital and
    physical LEGO play. Few companies have made a successful return to their roots and many who do fail
    because they cannot keep up with an everchanging marketing environment. Take Mattel, for example,
    which was once the king of the toy aisle, but in 2015 dethroned CEO Bryan Stockton just a few months
    after it was reported that the maker of Barbie dolls and Hot Wheels cars is no longer the world’s leading
    toy maker. Mattel has struggled lately as its iconic Barbie doll has fallen out of favor with young girls,
    who prefer electronics today and dolls based on Disney’s hit animated movie The LEGO Group is a
    familyowned company based in Billund, Denmark, and best known for its superior-quality LEGO toys.
    The company was founded in 1932 by Ole Kirk Christiansen. The word Lego is derived from the Danish
    words “leg godt,” meaning “play well.” On average, every person on earth owns 86 LEGO bricks and a
    mind-blowing number of 400 billion LEGO bricks now populate the planet, enough to build a tower to
    the moon 10 times over. The LEGO Group patented the

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