Lego also has opened a chain of branded retail stores, beginning with one in Cologne and a second in Milton Keynes. This introduces a direct to consumer strategy. The success of their direct-to-consumer strategy can be attributed to:
*their ability to offer differentiated merchandise across its channels,
*using consumer research and in-field testing to mitigate internal and external roadblocks,
*selectively augmenting their internal staff with external hires who possess the right skill set and attitude, and
*creating an organization where information is shared and the focus is creating a relationship with the end consumer
However they have had to face many challenges such as:
*raising the awareness levels of the brands;
*deciding which direct-to-consumer channels they would venture into, and how would they do so without alienating their wholesalers and established retail accounts;
*the type of merchandise that would be offered in the respective channels;
*determining whether their internal skill set was adequate to meet their objectives; and
*whether their organisational structure was optimal for accomplishing their goals
However there are many Benefits for Brands Going Retail:
1. Build their brand
2. Build a competitive advantage
3. Create a new distribution channel.
Lego also became more competitive via the introduction of a website which offered consumers a virtual community that featured:
*the biggest LEGO store in the world;
*products they could only find online (e.g., Classics);
*products that offered more challenge to the hobbyist;
*the ability to interact with LEGO play materials in a manner that was most comfortable for them;
*a forum to provide their ideas and obtain input about those ideas from other website consumers; and,
*the ability to customize their purchases.
In other words, the stated goal of building consumer relationships materialized in many ways beyond commerce.
The company also has a number of “theme” parks called legoland, in which children can ride on attractions and view the Lego models. This too helps to advertise the brand making it more global. Older kids will head straight to the coasters, each themed with elements from popular Lego sets. They'll also get their hands on state-of-the-art robotics components as they build, program and test their own robots. Youngsters will push themselves to achieve as they hoist their chairs to the top of the Kid Power Towers, pedal a monorail car around an elevated track or earn their very first license at the popular Driving School. Toddlers will delight in their very own Playtown, with a scaled-for-them village jam-packed with rides, activities and fun. The Legoland must-see Miniland attraction will capture the whole family's imagination with its incredibly detailed and animated depictions of life in recognizable cities and regions. Throughout the park, tempting restaurants, lush landscape and spotless walkways beckon families to discover still more adventures awaiting them around each turn.
Lego also try and satisfy the customer in the selling process via information available on their packaging. Building kits are conveniently labeled with an age bracket for which they are best purchased. Keep in mind that kits with many small parts are not appropriate for very young children who are still inclined to put things in their mouths. Duplo building blocks are larger and are appropriate for children from preschool up to about age 5 or 6. Then, children are ready to graduate to Lego toys. Lego toys not only encourage children to be creative and imaginative, they also can be used to teach mechanical concepts. Not only are they targeted at males but there are also kits which are advertised as girls Lego. In fact, there are several Lego product lines designed to appeal specifically to girls including the Belville Enchanted Palace, Lego dolls and Lego Scala. The company has also broadened its horizons While you may be most familiar with Lego’s building kits, there are quite a few other products made by the company that would appeal to kids who are Lego fanatics and advanced builders including software, video games, robotics kits, books, board games and more.
WORD OF MOUTH
When a customer complains about your product, service, guarantee, or Web site, it's not always because the quality was terrible. It may have been because you didn't manage that customer's expectations. This can introduce bad word of mouth and lead to potential customers choosing alternatives. LEGO kits come with a couple extra bricks, customers felt this was something extra, an unexpected bonus. This kept customers satisfied resulting in good word of mouth and increased sales and repeat purchases. Word of mouth relies on exceeded expectations. Manage your customers' expectations. You'll be rewarded with their loyalty and the power of their word.
