Lego: 60 years of marketing plastic bricks

60 YEARS OF LEGO BRICKS

The Lego Group began marketing its iconic plastic brick sets in 1958. Fast-forward to 2018, and the 60-year-old product is one of the world's most popular toys, with marketing reinvented for the next generation. The brand is also estimated to be the world's most valuable toy brand.

The CMO notes that the brand's mission is 'to inspire and develop the builders of tomorrow, to reach more kids'. It continues to introduce new building sets, many linked to strong brand franchises like Star Wars, Harry Potter, and Ninjago.

Lego's sales in Europe and the US didn't meet company expectations last year. It experienced very good growth in China, however, and the company plans to open more branded stores there as demand surges.

The brand is also building on the strength of Legoland theme parks to keep its toys in the public eye. For the royal wedding of Prince Harry and Meghan Markle, for instance, Lego built a small-scale version of Windsor Castle on the grounds of Legoland Windsor.

And, with an eye toward social responsibility, Lego is beginning to make some of its bricks from plant-based materials. The idea is to become more environmentally-friendly and demonstrate good corporate citizenship.

This post updates the Lego Group example that opens Chapter 5 of my Essential Guide to Marketing Planning.

Update on the UK chocolate market

The UK chocolate market continues to grow, with more competition than ever and new products attracting attention. Consumers in the UK eat more chocolate per capita than consumers in any other nation. Seasonal products are leading the way, as are niche products that represent social responsibility commitments.

Tony's Chocoloney is a company that markets ethically-produced chocolate products. Based in the Netherlands, and already selling to the US market, Tony's plans to launch its first chocolate bars in the UK next year.

For a niche marketer, the company has a solid social-media following (more than 100k Facebook likes, for instance). Its ethical-source mission resonates with many consumers who seek out brands with purpose.

The upmarket company Hotel Chocolat continues to expand. It operates 103 retail stores, some with cafes attached, as well as a sustainability-based cocoa plantation. The company recently reported higher earnings.

Hotel Chocolat recently repaid thousands of bond-holders who invested in its so-called chocolate bonds, providing funding for the firm's sustainability projects and more. The firm recently prevailed in a dispute with Waitrose, saying that the grocer appeared to have copied the company's signature slab chocolate products. Waitrose stopped marketing the chocolates and the CEOs of both firms planned to sit down and chat over a cup of cocoa.

This post updates background information in the "Lost Legends Luxury Chocolatier" sample marketing plan, in the Appendix of my Essential Guide to Marketing Planning, 4th edition.

Latest in Specsavers marketing

Specsavers, the multinational chain of more than 2000 retail shops, appeals to consumers on the basis of local expertise, fashion design and affordable pricing. The company's multichannel strategy appeals to multiple market segments.

Local Specsavers shops examine the external marketing environment for spectacles and other eyewear products and offer products and services to meet the needs of their retail clientele.

Specsavers particularly wants to be known for its community involvement and social responsibility. So, for example, some UK stores recently participated in charity efforts like fundraising for Brain Tumour research.

The UK Specsavers organisation is highly social...and has attracted hundreds of thousands of views for its YouTube videos over the years. Its Twitter account, opened eight years ago, has nearly 40k followers. Its Instagram page features stylish eyewear for men and women, a complement to the pricing promotions in other media.

In Africa, nearly 300 franchised Specsavers shops emphasise affordable eyewear via social media such as Facebook and Twitter. The organisation offers free try-on of glass frames by mail, so customers can see how frames look at home.

In Australia, the Specsavers organisation uses the strapline 'Good looking styles at feel good prices' on its website. Its Instagram account asks brand fans to 'snap a spec selfie' and upload with the tag #LoveGlasses for a chance to win a prize. Its Facebook page has more than 110k followers and its YouTube account has nearly 1000 followers. The Australian Specsavers stores support hundreds of local community causes.

This updates the Specsavers example in the chapter on Analysing Customers and Markets, in my book Essential Guide to Marketing Planning.

Differentiation through sustainability

In this era of intense competition and easy consumer access to detailed information about products and brands, marketers are differentiating themselves through dedication to sustainability and social responsibility.

H&M, Marks & Spencer and IKEA are only 3 of the growing number of global marketers being recognised by the Better Cotton Initiative for their use of sustainable cotton. The ranking shows which retailers and manufacturers are actively seeking out ethical sources of cotton grown in earth-friendly ways.

World Wildlife Federation, with funding from IKEA, piloted the original initiative to grow cotton sustainably. Now that effort has grown into an international movement.

Brands such as Asos, Nike and M&S recently pledged that all of their cotton goods will be made from sustainably grown cotton by 2025. As part of their pledge, these brands will annually publish their performance in progressing towards this commitment.

In addition, marketers are also looking to increase sustainability by sourcing wool and other materials in ways that protect the environment and the workers. Stella McCartney, for example, has achieved Cradle to Cradle Gold certification for the wool used in its fashion products.

More brands are choosing this method of differentiation, knowing that many consumers pay close attention to sustainability factors when making a purchase decision.

Marketing Manifesto Brands

The French food giant Danone, known for yoghurt and other dairy products, as well as for Evian water, is now promoting its Manifesto, putting societal goals alongside marketing and financial goals.

Danone's website says: 'We built our Manifesto to reinforce our dual commitment to business success and social progress and to acknowledge that we cannot work for healthier choices and lifestyles without caring about the health and wellness of our communities'.

In fact, the company is planning new or repositioned products (manifesto brands) that fit with these goals of giving consumers the tools (in this case, food choices) to be healthier. Danone recently acquired the US-based White Wave company, which markets soy milks, almond milks and other products, to increase its presence in the growing American market for plant-based food products. As part of this acquisition, Danone had to divest Stonyfield Farm yoghurt, a brand known for organic ingredients and social responsibility, to satisfy regulatory concerns.

Danone's CEO explained the White Wave acquisition this way: 'By combining 100 years of dairy fermentation with plant-based technology we can reach customers all around the world through multichannels and invest in sustainable nutritious solutions for tomorrow'.

Now Danone will concentrate on its growing portfolio of healthy brands for multiple nations, advancing its financial and marketing goals as it advances its societal goals worldwide.

'Versus' marketing strengthens positioning

Marketing magazine has a thought-provoking opinion piece by Mark Ritson, about positioning for competitive advantage. Here's one quote:

The versus position is one in which we make it clear what we stand for to customers by highlighting the differences between ourselves and others.

Remember, positioning is in the mind of the customer--how the customer thinks or feels about your brand and competing brands. Your role is to put forth a 'versus' fitting for your product or brand, one that is compelling enough to influence thought and feeling, compelling enough to encourage a purchase.

It's not enough to say 'my brand is the best'. But if you position versus traditional brands--as one example--or versus a specific competitor, you help customers understand what your brand stands for and why it's the best choice.

Here are two examples of positioning versus traditional competitors:

• Ben & Jerry's website and packaging showcase the brand's social responsibility. The company (owned by Unilever) knows that customers expect ice cream to taste good. Ben & Jerry's stands for more than just good-tasting ice cream. Its positioning relies on the brand being good for the planet, good for workers, good for social causes--not a claim that every competitor can make.
• Innocent positions itself as 100% pure, no additives, no 'nasty' stuff, just healthy, fresh ingredients. This is in contrast to traditional soft drinks that are carbonated and sugary, or that use artificial sweeteners. Plus Innocent (owned by Coca-Cola) is 'sourced sustainably' and gives 10% of profits to charity. Again, not every competitor does what Innocent does.

One last thought: If you use advertising to highlight differences between your brand and another, be sure the comparisons are fair and not misleading.

Purpose-driven marketing at Unilever

Unilever's chief marketing officer recently said: 'We need to build brands with purpose. We need to go from "marketing to consumers", to "mattering to people"'.

In other words, the consumer products giant believes in purpose-driven marketing.

One year ago Marketing Week named the top 100 firms for brand purpose--and at the top was Unilever.

Just weeks ago, Unilever arranged to buy Seventh Generation, a US-based brand of household cleaners known for sustainability.

Unilever's executive vice president for global marketing notes that brands need to be activist as part of their purpose: 'Consumers are really expecting brands to create movements. They want to be part of those movements', she explains.

Yes, the firm's brands seek to make a positive difference (via social responsibility, sustainability and so forth). And in the process, Unilever benefits by meeting customers' needs, increasing public trust and, ultimately, improving the bottom line. 'Fifty percent of Unilever's growth today is coming from brands that are acting on their purpose', the EVP says.

7th October is Byte Night

Across the UK, people will be sleeping rough on Byte Night to raise £1.4 million for Action for Children. This event began in 1998 and now attracts more than 1,200 participants. Venues are hosting sleepouts and promoting fundraising activities for Byte Night.

To raise awareness of the event and explain the fundraising need, and to encourage involvement, Byte Night tweets and uses Facebook.

Byte Night also communicates via its LinkedIn profile page, because of the strong business participation from IT and other professions. Business leaders promote fundraising inside their organisations and to public audiences, as well.

So watch for #ByteNight tags across social media and get involved!

Domino's UK: new research, new packaging and more

Domino's UK has introduced a new box--two boxes--a clever way to reinforce the brand logo (shown at left). One pizza box is red, one is blue, and both are recyclable.

The packaging redesign is based on research showing that 96 percent of all Domino's UK pizza orders involve two pies. So the new packaging doesn't just echo the branding, it subtly communicates the two-for promotion.

Domino's UK's latest results show that nearly 8 in 10 pizzas are ordered via e-commerce--and half of those orders flow through the company's popular app. The brand is highly social, with 1 million Facebook likes, 262k Twitter followers and hundreds of thousands of views for each YouTube post. Clearly, Domino's knows its target market, and keeps its brand in front of the audience in different digital ways. The company also gets customers involved in its social responsibility and environmental activities (such as Pennies become pounds).

Outside the UK, Domino's has made headlines lately for its test of a delivery robot, not an April Fool's joke.

Strategic CSR in India

Strategic corporate social responsibility (CSR) allows marketers to align their plans for sustainability, community involvement and charitable activities with their business goals and activities. The idea is to allocate resources towards efforts that are important to stakeholders and to the business's success. 

Government-set rules in India, for example, now include a goal for businesses to spend 2% of after-tax profit on CSR in the country. Deciding how, when and where to invest money, time and management resources is a matter of strategy.

At Toyota Kirloskar Motor, for example, the CSR mission statement is: Be a socially committed corporate through building vibrant communities in harmony with nature, aiming to become the most admired company in India and meet customer expectation and be rewarded with a smile.

The automaker's CSR focus is on health/hygiene, civic amenities, stakeholder engagement, art and culture, skill development, road safety, education and environment (see graphic above). The firm recently distributed notebooks and book bags to school children in Ramanagara as part of its $50 million CSR strategy.

Hindustan Unilever, which makes personal care products (under brands such as Lifebuoy and Lever), manages its CSR strategy in India according to this vision: To grow our business whilst reducing the environmental impact of our operations and increasing our positive social impact.

The company's managing director said in a recent interview: 'We as a company do not believe in donations or cheque-signing philanthropy. Something that can make a meaningful impact on the environment, the community, and the society at large is something that our sustainable living plan endeavours'.

Two of Hindustan Lever's CSR goals (also CSR goals of its parent, Unilever)are to further sustainability and empower entrepreneurship. Its Shakti program accomplished this by recruiting women from small villagers as distributors of the company's products. The long-term value of this ongoing program not only improves local economies, it benefits the company's market reach.