LEGO's Remarkable Turnaround: Lessons in Adaptive Marketing and Targeting New Audiences
From the brink of a financial abyss to achieving record-breaking sales, LEGO's journey is a masterclass for businesses worldwide. Here at Soch Studio, based in the heart of Hobart, Tasmania, we're all about embracing such innovative and adaptive marketing strategies.
Lego Ad from 1981
1. The Crisis and the Comeback
In 2003, LEGO faced a staggering $800 million debt. Fast forward to 2015, and they reported over $1 billion in sales. What catalysed this extraordinary turnaround? The answer lies in understanding consumer behaviour and adapting to it.
LEGO’s then-CEO highlighted the importance of direct consumer research: "If you want to understand how animals live, you don’t go to the zoo, you go to the jungle." This philosophy drove LEGO to engage with its core audience - children - and their parents, conducting extensive global research to understand play patterns.
2. The Power of User Research
LEGO's research revealed that many of its product failures were rooted in outdated assumptions about what children wanted from their play experiences. This eye-opening realisation led to significant shifts in their product design and marketing approach.
One of the most notable successes was cracking the previously untapped girls' market. In 2011, despite a customer base that was 90% boys, LEGO reimagined its approach and launched LEGO Friends. This line, tailored to the interests of young girls, led to a 20% annual increase in sales in this new market segment.
3. Reimagining Play for Parents and Kids
LEGO didn’t stop at product diversification. They launched campaigns like "The Power of Play" and "We are all Builders," which resonated with both kids and parents. These initiatives redefined the LEGO experience, making it inclusive and appealing to a broader audience.
4. The Future: Targeting Adults, Gen Z and Millennials
The latest stride in LEGO's marketing journey is its foray into the adult market, particularly targeting Gen Z and Millennials.
This strategic move involves partnering with influencers and launching aesthetically pleasing sets like Vespas, bunches of flowers, and iconic buildings. These sets are not just playthings but collectibles and decorative items that appeal to the nostalgia and sophisticated tastes of adults.
“My kinda date night 😮💨 …”, via Gabriel Conte on Instagram
5. LEGO's Strategic Evolution: Embracing Sustainability and Interactive Experiences
In recent years, LEGO has not only expanded its market reach but also aligned itself with contemporary values like sustainability. Recognising the growing concern over environmental impact, LEGO has committed to making its operations more eco-friendly. This includes initiatives to create sustainable materials for their iconic bricks and reduce overall carbon footprint. Such a move not only addresses environmental concerns but also resonates with a more eco-conscious consumer base.
Additionally, LEGO has enhanced the customer experience by integrating digital and interactive elements. Through apps and interactive playsets, LEGO merges physical and digital play, appealing to a generation that is increasingly tech-savvy. This strategy of combining traditional products with modern technology enriches the customer experience, making LEGO relevant and exciting in a digital age.
What Does this Mean for your Business?
LEGO's story is a testament to the power of understanding your audience and being flexible enough to adapt to changing market dynamics. As a business, whether you're facing a downturn or looking to expand your market reach, the key lies in:
Conducting Thorough Market Research: Understand your audience’s current needs and preferences.
Being Adaptable: Don’t shy away from redefining your products or services to meet emerging market trends.
Targeting New Audiences: Look beyond your traditional customer base and explore new demographic segments.
Building a Strong Online Presence: Engage with modern marketing channels, including social media and influencer partnerships.
“I didn't think I could be more attracted to my wife until I heard the sound of her snapping together two LEGO”, via Gabriel Conte on Instagram
Soch Studio: Your Partner in Adaptive Marketing
At Soch Studio, we embody the spirit of adaptability and innovation in marketing. Our approach mirrors the lessons learned from LEGO's success - deeply understanding our clients' unique needs, conducting thorough market research, and crafting tailored strategies that resonate with their target audience.
Whether you're a local Hobart business or an international enterprise, our team at Soch Studio is equipped to guide your marketing journey, helping you connect with your audience in meaningful ways and achieve sustainable growth.
