From Bankruptcy to Brilliance
Since inception, Lego has been developing one of the most renowned brands. As a brand, Lego has built an image of creativity. With both products and advertisements aimed at creativity, Lego is well established as a brand of imagination. Lego also excels at producing cross-over products and advertising them. Lego has many joint products with big-name brands such as Star Wars, Marvel, Lord of the Rings, and many more.
In fact, these collaborations saved the Lego brand from the brink of bankruptcy. In the late 1990s and early 2000s, Lego was struggling to give consumers what they wanted. This failure to deliver almost destroyed Lego. However, once Lego started creating licensed products, with Star Wars being the first in 1999, the brand started climbing its way back up.
While licensing helped save the brand, one major reason why Lego thrives is their consumer understanding. This understanding was developed by hiring brand fans to design Lego sets rather than employing top-notch designers who didn't understand the consumer. By allowing people who were connected to the products and also understood what consumers want, Lego created an environment of creativity that people bought.
More recently, Lego has seen tremendous growth in brand extensions including newer licensed Lego sets, video game series, and the major success of The Lego Movie. All of this growth was built on a deeper consumer understanding and trusting creativity with brand fans.
One amazing example of Lego’s success is the value of Lego sets. Resale value of Lego sets has been increasing at a greater rate than gold. Literally. This incredible value increase is nearly unbelievable. Check out this article on CNBC about Lego’s increasing investment value.
How to Use Lego's "Building Blocks" to Build Your Brand
What can we learn from Lego? Well, first we must understand the consumer. This applies to advertising, marketing, and many more parts of a company. In order to be successful, we need to understand the needs and wants of the consumer. Lego had a great idea to use top-notch designers to create Lego sets, but because they didn't understand the consumer, it harmed the brand.
Second, even if you have the best-of-the-best, it means nothing without a viable product. You can advertise your expertise and promote your incredible designs, but if the consumer doesn't buy it, you've failed.
Lastly, aside from the consumer, your brand's success is dependent on the passion put into the work. If you hire passionate people who genuinely care about the brand and are connected to the products, then your brand will be better off for it.
Lego continues to create new sets and products across many platforms such as Lego Star Wars the Force Awakens, Lego Batman Movie, and more.
Learn more about Lego’s rebuilding and growth here.