Brand marketing: relevance and experience

According to a recent ranking, the three most relevant brands in the UK are: Apple, Lego and Playstation.

More than 10k consumers responded to the survey, saying that--for the third consecutive year--Apple is the most relevant brand in their lives. What is relevance? According to the Brand Relevance Index, it means 1) consumer obsession, 2) inspiration, 3) innovation and 4) pragmatism.

Lego is #2 in this survey, a brand that understands consumer behaviour and knows how important personal experience influences relevance. Lego is using event marketing and other in-person experiences to compete in newer markets such as Hong Kong. The Lego House in Denmark is an in-person brand experience built from 25 million plastic Lego bricks.

In fact, more brands are marketing themselves through experiences. For instance, Converse--which makes athletic shoes--refashioned a London hotel into a limited-time brand experience earlier this year.

Watch for more brand marketing via experiences during the holiday shopping season as companies seek to build awareness, preference and purchasing.

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.

Top UK consumer brands of 2017

SuperBrands has released its list of the top consumer brands for this year, as determined by UK consumers.

Here are the top 5, along with a bit of news about each of these leading consumer brands.

5. Gillette - Gillette is facing competition from UK newcomer Harry's, which offers a subscription-based alternative to buying razor blades at retail. Backed by Procter & Gamble, Gillete's traditional strengths are positive brand recognition and product innovation.

4. Andrex - The well-known toilet-tissue brand is celebrating its 75th anniversary with nostalgia-laden marketing. Andrex enjoys high market share and has slightly shrunk its rolls to cut costs and fund product investments.

3. Rolex - Reinforcing its brand's luxury positioning, Rolex sponsors special events like the Rolex Fastnet yacht race and the Rolex Grand Prix at CHIO Aachen showjumping competition. These special events keep the brand top-of-mind in the target market.

2. LEGO - The recent Bricklive special event in Belfast offered LEGO fans the opportunity to build and to watch others build creatively. More than 10,000 brand fans showed up, some to build and many to enjoy seeing the process and the finished results--reinforcing loyalty and engaging fans.

1. British Airways - As part of a trend toward entertaining passengers (and the public), BA recently released a funny safety video starring celebs like Gordon Ramsay, 'Mister Bean' (Rowan Atkinson) and Gillian Anderson. The airline's CEO says he wants passengers to watch the safety video from start to finish. It's also a positive branding association.

Preventing 'success disaster'

Message on Hatchimals website in December, 2016

A Google product expert--one of the team behind the new artificial-intelligence Google Translate technology--recently spoke about the need to prevent success disaster. That's a situation in which an organisation lacks the practical capabilities to meet high demand for a product.

In other words, suppose something new like the revamped Google Translate is tested and adopted by a large number of users. The result would be a strain on Google's network unless it planned, in advance, for an extended, sustained surge in usage. Meaning new processing equipment and new networking equipment. Which Google did, in fact, install prior to revamping Google Translate this year.

Family Search, the free genealogy website, also understands the potential for success disaster. As more people worldwide become interested in family history and post names and photos on Family Search's databases, the organisation has arranged for flexible cloud computing services to keep operating at peak demand.

Now think about the potential for success disaster at Christmas time. Weeks ago, well before the peak of holiday shopping, Hatchimal toys were already out of stock in many stores. Even though the company shipped additional inventory during December, it recognised that some children were going to be disappointed by not having Hatchimals under the tree in 2016. The message shown at top was a pop-up on the company's home page in mid-December.

Admittedly, predicting the popularity of a new toy (actually, predicting consumer behaviour towards purchasing the new toy) is quite a challenge. But even LEGO, with its long history of sales analysis, wasn't prepared for worldwide demand in 2015. No wonder LEGO 's top executive says: “If you make a decision in product design, you need to mirror it in manufacturing.” That is a major step towards preventing success disaster.

How did LEGO do?

From LEGO's corporate newsroom

LEGO recently reported turnover and profits . . . and different media outlets viewed the results in different ways.

• 'Lego wobbles after American downturn and higher wage bill' - The Evening Standard's headline
• 'Lego continues to build up sales' - BBC's headline
• 'Building on bricks with clicks' - CNBC's headline
• 'Lego profit falls 1.8% as company builds in China and Mexico' - Irish Times headline
• 'Toymaker LEGO builds more plant capacity to revive growth in US Sales' - Reuters

LEGO's profits are down a bit because it's expanding its workforce and its manufacturing capacity. Why? Because worldwide demand continues to grow and grow and grow.

In fact, demand was so extraordinarily high in 2015 that LEGO struggled to fill all orders for Christmas.

To avoid a repeat, LEGO is investing now as it continues implementing its global marketing plan, following a long-term growth strategy. Just in time: LEGO products are, of course, on this year's lists of top children's toys for Christmas.

Boaty McBoatface sails into marketing history - as a brand license?

The votes are in and "Name of Vessel" is not going to be the name of this new polar research vessel.

The Natural Environment Research Council asked members of the public to suggest names for its new vessel, which will debut in 2019. It received a flood of suggestions--7,000 names--and the one that received the most votes was, yes, Boaty McBoatface.

Boaty was suggested by James Hand, once a BBC radio presenter. Whether the NERC will actually select Boaty as the name is in doubt, despite the 124,000 votes it received.

Crowdsourcing is often cited as a great way to increase customer engagement with a brand, product or company. And it has been used successfully by Walkers, for instance, during the popular 'Do us a flavour' promotions to choose the next new snack flavour. LEGO also likes crowdsourcing.

Will the NERC agree with the public vote and name its new vessel Boaty McBoatface? Maybe yes, maybe no. Either way, the new vessel will be in the public eye when it debuts.

My idea is to license Boaty McBoatface to a toy manufacturer. If Thomas the Tank Engine can be a big success, so can Boaty McBoatface the polar vessel. Wouldn't Boaty be a brilliant brand?

Boaty McBoatface is sailing into marketing history, in the 'crowdsource' chapter.

Marketing the hottest toys for Holiday 2015

Months in advance, retailers are publicising the toys they say will be the most popular, most purchased for the 2015 holiday season. What's on top?

• Hamleys: Many parents will remember Tracy Island Playset from decades past--and now, with the Thunderbirds back in the public eye, this newly interactive toy is back in the shops. Skate & Sing Elsa (above, from Disney's Frozen) will also be a top seller, says Hamleys.
• Argos: Minions Tumbling Stuart toy (from, of course, the Minions movie franchise) will be a top seller, along with My Friend Freddie (an interactive teddy), LEGO Deep Sea Exploration Vehicle and Barbie My Style House.
• Smyths Toys: Star Wars-the Force Awakens interactive figures, tied to the new movie, will be a big hit, says Smyths. Also: Paw Patroller, Pie Face and Disney Frozen-theme bicycles.

By the way, how does LEGO keep its innovative edge? As the world's largest toy marketer, Denmark-based LEGO must continuously innovate to maintain its marketing momentum. The company's Future Lab is responsible for trying new ideas, testing prototypes with children and using insights from failures to invent even more inventive playthings. 

Movie helps LEGO build profits and brand momentum

LEGO, known for its ubiquitous plastic bricks, has just reported a 12% rise in profits, thanks to the popularity of merchandise related to the animated hit The LEGO Movie. The movie's appealed not just to young fans but also to adults who accompanied youngsters to the theater (often more than once)--noting that the plot and characters were engaging and not just an extended advert for the brand.

On the strength of the rise in revenue and profits, LEGO is now at the top of the toy industry, surpassing long-time leader Mattel by a small margin. LEGO and Mattel will both be using their marketing plans to build brand momentum for the all-important year-end holiday shopping period. Mattel has even purchased Mega Brands, a rival plastic brick company, to enhance its presence in that part of the market.

Can LEGO repeat its move tie-in success with a sequel? Disney/Pixar's Cars multi-movie franchise has been bringing shoppers into stores to buy billions of pounds worth of movie-related products for years. No wonder LEGO is looking ahead to 2017, when Warner Bros. plans to debut the second in the LEGO movie franchise.

LEGO's marketing plan: new distribution, new products

On the last day of February, LEGO opened its largest European store on the grounds of Disneyland Village at Disney Paris. (The official Disney Paris site hasn't updated its 'coming soon' note about the new store, but the store's definitely open--it's listed in the LEGO store locator here.)

Increased distribution through company-branded stores is only part of LEGO's marketing plan for ongoing growth. The Danish company is also broadening its appeal by creating new minifigures featuring women as scientists (above, the chemist). The new minifigures were designed by a geochemist and submitted via LEGO's ideas crowdsourcing website, reviewed by the company's officials, and finally cleared for a new product introduction promotion in August.

Via this ideas website, several other new products are under consideration, including a Doctor Who block set, as shown above, and a set based on the US TV show Big Bang Theory. Watch for decisions in a few months. Given the immense popularity of these TV shows, new LEGO sets may tap into the adult market as a targeted segment, in addition to the traditional children's market for building blocks.

Lego becomes world's #2 toymaker

Lego has just moved up in the toy world, passing Hasbro to become the second largest toymaker on the planet.

(US-based Mattel, maker of Barbie and American Girl dolls, remains the world's top toymaker.)

One big reason for Lego's continued increase in sales and market share: the global success of the best-selling Friends play sets for girls.

Another big reason: Lego's Chima sets, which feature animals--especially popular in China, a market being targeted for additional marketing attention. 'Asia has not been a major focus for us as a company up until this point, but we see now with the emerging middle class, more and more consumers that are really interested in our ... products', the Chief Financial Officer tells Reuters. Not surprisingly, Lego will be building a factory in China so it can meet growing demand for its bricks and figurines. 

Lego also has some highly popular brand licenses (Star Wars, for example) and marketing partners that have licensed its brand (such as Merlin Entertainment). The company's knowledge of customer behaviour, branding expertise, product development skills and distribution savvy have all contributed to its worldwide success.

In UK shops and online stores, Lego's products are often featured on special themed shelves and pages. Argos has web pages devoted only to Lego, as do Amazon and Toys 'R' Us. This allows display of the full Lego range and keeps the focus on the brand and its unique personality.

Father's day marketing

Father's Day is 16 June, and marketers are reminding gift-givers not to forget Dad. Here's a sampling of Father's Day offers and promotions:

• LEGOS has a new advert featuring Darth Vader and . . . spoiler alert! . . . son Luke Skywalker. It's featured on the LEGOS Facebook page, where it has already been shared 2,000 times.
• Moonpig is celebrating Dads and all they do for the family, promoting its gift selections and more.
• Tesco's Facebook page features Father's Day posts promoting specific gifts such as sat-nav devices (at right).
• Thorntons is tweeting about sweet gifts for Dad, from its shops or ordered online.
• Marks & Spencer has a special webpage with gift ideas for Dad, everything from T-shirts and ties to sherry and socks.

Happy Father's Day to all Dads!

Christmas toys 2012 (with ghosts of Christmas past)

This year's lists of top toys for Christmas include a number of favourites from the past, including Legos, Furby (a hit in 1998 for the first time) and Cabbage Patch Kids (30 years after their debut under this brand).

• The Toy Retailers Association's 2012 list of Dream Toys includes a mix of traditional and electronic toys like LeapPads and Legos.  
• Hamley's list of top toys includes Subbuteo, Moshi Monsters and some of the popular toys from the Dream Toys list.

Zhu Zhu Pets, hot toys from previous years, aren't on the lists for 2012, and their lack of popularity is one reason that toy company Character Group is seeing sales decrease. Character Group's Peppa Pig, Scooby Doo and Fireman Sam toys are still selling in Europe, but Zhu Zhu Pets have fallen out of favour this year.

Will Zhu Zhu Pets return to the Dream Toys list in 2013, 2014 or beyond? What about Furby, Cabbage Patch Kids and Moshi Monsters?

Legoland has big plans for small bricks

This month, Merlin Entertainments Group celebrates the first anniversary of its Legoland theme park in Florida; last month, it held the grand opening of Legoland Malaysia.

The company (owner of the London Eye, Gardaland, the Blackpool Tower and other attractions) has been steadily expanding Legoland beyond the theme parks already open in Denmark, Britain, California and Germany.

'We’re really focused on our target group — families with children, ages from 2 to 12, so all our activities are specially designed for this group', explains the general manager of Legoland Malaysia.

In other words, Legoland differentiates itself from Disney and other competing theme parks by its targeting. The brand recognition that Lego has among youngsters and their parents worldwide reinforces the appeal of these family-friendly theme parks. Actually, Lego fans of all ages flock to the parks to enjoy the impressive mini-sculptures of famous buildings and other structures created out of Lego bricks.

Lego Friends for Little Ladies

Lego is introducing a new line of figurines and blocks targeting girls in the age range of 5 to 8.

With the brand's recognition level at all-time highs among parents who buy for boys in the 5-to-8 range, Lego now wants to capture more of parents' spending on children's toys. And why not?

Seems that Lego did a lot of marketing research and realized that girls like to project themselves into the story. These new figurines and block shapes expand the story lines beyond airports, Hogwarts and the Empire, into more familiar everyday surroundings such as a tree house and beauty salons located in Heartlake City, the new Lego "universe" for girls.

The UK launch is set for Boxing Day--yes, Lego is hoping that families clutching gift cards or holiday money will flood into toy stores after Christmas to pick up the new Lego Friends. Stores will also have more room to display the new Lego range after Christmas. (The US launch will occur on New Year's Day.)

The rollout will continue around the world month by month. Will Lego Friends enjoy the big success that boys' Lego sets have enjoyed?