At the turn of the century, the powerhouse toy company of Lego that had seen decades of success, and rivaled the other world-wide toy companies without having to flex a muscle. This dominance was the predominant reason behind Lego’s horror year of 2005.
It was the Lego brand that had bought them so much success over the years, as they held a unique identity that even pre-school children were aware of – these children may not have been aware of their ability to identify Lego, yet it is evident that these children were identifying without consciously going out of their way to do so.
This all relates to Lego’s powerful brand.
In 2005, losses in the billions prompted Lego to move away from their beloved and identifiable construction kits. The results of such bald moves saw them brush the depths of bankruptcy. It was clear that Lego needed to keep in touch with their construction kit roots and somehow remain competitive.
Focus, engagement and knowledge of consumer preferences were at the forefront of Lego’s business ethos. This is where the creative cross channels marketing, all incorporating the renowned “Lego-Club” magazine for free.
Who is going to pass up a free magazine? Other techniques impressively engage the most avid lovers of Lego to those “loyal” customers who may have bought a set or two in their lifetimes. It is important to note that it didn’t take long for these “dormant” loyalists to get back on the Lego bandwagon. Through positive interaction via the “Lego-Club” magazine – brand identification allowed such substantial growth.
Five issues a year, with a circulation of an astonishing 3.2 million copies have prompted other companies to follow suit as the fiscal rewards of advertisements in Lego-Club magazines were too overwhelming for other major companies to look the other way.
Essentially, the brand Lego has indirectly had a major impact on magazine growth thanks to ease of identification. End users can demonstrate the brand’s potential in a much stronger way than the company itself has the ability to.