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Introduction

GLOBAL BRANDING STRATEGY GROUP REPORT FOR... 28 JANUARY 2003 7049 (Summer School 2003) Topics in Marketing: Global Branding Lecturer: Dr Jukka M. Laitam�ki Submitted By : Adrian Chua Soon Teck 1096311 Lawrance Wong Khai Yuen 1096301 Vernon Heng Wee Kiat 1101657 Samuel Wee Han Chearn 1097677 Foo Thien Ming 1097241 TOTAL NO. OF PAGES : 34 pages (excluding cover page) Contents 1. Executive Summary............................................................. 2 1.1. Company Introduction ................................................ 6 1.2. Industry Surveys....................................................... 6 2. Understanding Global Strategy Readings................................. 7 2.1. Industry Globalization Drivers....................................... 7 2.2. Market Globalization Drivers......................................... 7 2.3. Cost Globalization Drivers............................................ 8 2.4. Government Globalization Drivers.................................9 2.5. Competitive Globalization Drivers.................................. 9 2.6. Global Strategy Levers................................................ 10 2.7. Actual and Target Globalization By Activity...................... 10 2.8. Actual and Target Use of Global Marketing...................... 11 2.9. Competitors' Use Of Global Strategies......................... 11 2.10. Specification of Core Business Strategy.......................... 11 2. Brand Leadership: The Evolving Paradigm............................... 11 3. Brand Leadership Task......................................................... 12 4. Brand Identity Planning Model (Global)..................................... 12 5.1. Brand Essence.......................................................... 12 5.2. Core Identity............................................................. 12 5.3. Extended Identity....................................................... 13 5.4. Value Proposition....................................................... 13 5.5. Relationship.............................................................. 14 6. Brand Identity Planning Model (Global Vs Local)......................... 14 7. Brand Identity Elaboration Model............................................. 14 7.1. Identity-Supporting Programs Audit................................ 14 7.2. Brand Identity Prioritization.......................................... 15 8. Brand Relationship Spectrum................................................ 16 9. Brand Architecture Model / Brand Architecture Audit.................. 18 9.1. Portfolio Roles........................................................... 18 9.2. Product-Market Context Roles...................................... 18 9.3. Brand Portfolio Structure............................................. 19 10. Brand Building - Lessons To Learn From Adidas and Nike.......... 19 11. Role Of Sponsorship............................................................ 21 12. Building Brand - The Role of LEGO.COM................................ 22 13. Brand Building Beyond Advertising - LEGO In Japan Market....... 23 14. Global Brands.................................................................... 25 14.1. Effective Global Brand Management.............................. 25 14.2. Global Brand Planning For Japan Market........................ 26 15. Ten Keys, Seven Steps To A Global Brand.................................... 27 16. Recommendations.................................................................... 29 Exhibit 2.6. Global Strategy Levers................................................ 30 Exhibit 2.7. Actual and Target Globalization by Activity...................... ...read more.

Middle

brick that first came out over 50 years ago and which made the company famous. The distinctive LEGO brick is the 'LEGO System of Play' that differentiates it from other toys. In 1958, a new coupling system for the LEGO brick was invented. Tubes were added inside the hollow brick that resulted in greater structural stability. This made the combination possibilities almost infinite. LEGO patented this system, thus, there is no other brick like it. There is no other educational toy like it. The functional and emotional benefits are also points of differentiation that resonate with LEGO customers. LEGO stimulates creativity and imagination while having fun and promotes learning and development. The design and build of LEGO elements provide endless possibilities and are even compatible with those produced since 1958. LEGO encourages children (and adults) to explore, experience and express their own world - a world without limits. 8. BRAND RELATIONSHIP SPECTRUM LEGO currently uses the branded house model for all its offerings. This has been largely successful for LEGO because the range shares a common brand essence and brand identity. At the same time, LEGO has been nurturing sub-brands, such as Bionicle, and carefully moderating the prominence of the LEGO master brand when any of the sub-brands become established. Bionicle, though successful, is a product that targets the same audience as and explicitly shares the same brand identity as the rest of LEGO products. It is therefore unnecessary to commit to Bionicle as an eventual master brand. Diminishing the LEGO endorsement of Bionicle too much could even risk weakening the sub-brand. One key aspect of the LEGO brand identity is its appeal to the target age group of those below twelve. As LEGO ventures beyond this segment, it might be worthwhile to consider the use of the house of brands approach, for example, creativity training workshop for adult (Serious Play) and digital interactive games for teenager. ...read more.

Conclusion

Business Definition Customer Needs Addressed: Play, stimulate creativity and imagination and other needs are the same but a shift towards socio-culture (lifestyle) needs as well. Technologies used: Same technologies used globally Customer Segments Served: Same children and family with children segments but also teens, young adults and trendsetters. Products Offered: The same products globally. Geographic Scope: Japan 2. Strategic Thrust Direction: Business Growth Rate: 20% per annum (our team's estimate) Performance Priorities: Gain Market Share, Improve Revenues and Improve Profitability (in order of priority). 3. Financial Targets There is no access to such information from open literature. 4. Sources of Competitive Advantage Sources and order of competitive advantage: 1) Strength of brand name and reputation of company: The LEGO brand 2) Product quality: Meeting the international safety standards. 3) Marketing skills: Global Brand PR Team to handle marketing issues and brand communications. 4) Patents: New coupling system for the LEGO brick that results in far greater structure stability. Patented in 1958. 5) Breath of product line: No longer limited to product alone, LEGOLAND is what LEGO represents as an experience. 5. Strategy Elements Technology: Utilize technology for interactive software to meet the new digital age. Manufacturing: Allocate more resources for more manufacturing of lifestyle products. Product Line: Increase focus on lifestyle product line to meet the needs of young Japanese. Pricing: No change. Selling Approach: No change. Marketing Communications: Localized the communications. Distribution: Maintain present distribution channels which actually accounts for 99% of the sales. Customer Service: Localized the customer service. 6. Value-Adding Activities 1) Research: HQ 2) Development: HQ 3) Procurement: HQ 4) Raw material processing: HQ 5) Intermediate production/subassembly: HQ 6) Final production/final assembly: HQ 7) Marketing: Japan 8) Selling: Japan 9) Distribution: Japan 10) Customer Service: Japan 7. Competitive Strategy Competitors: Hasbro, Mattel and Bandai Strategy: To leverage on LEGO brand as a branded house and use the interactive version for the new digital age. Exhibit 3. Brand Leadership 1 Corporate Profile, LEGO corporate website, 2003 2 Young & Rubicam, Brandscape: Brand Asset Valuator, 2001 3 Landour Associates, Image Power, 1991 4 ...read more.

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