Lego Boosts Sales And Brand Loyalty With Revamped Marketing Strategy. To successfully sell products and cement long-term loyalty, retailers need to deliver a brand story, excellent customer service and ongoing support.
Faced with a significant sales downturn, The Lego Group — manufacturer of the Lego series of construction toys — decided to invest in customer service and brand imaging. In 2004, the company was close to $1 billion in debt and suffered a 40% decline in sales in a span of only two years. By committing to the strategies that would make Lego a premium brand in the eyes of consumers, the company and brand was able to bounce back. Today, the Lego Group is reportedly the most valuable toy company in the world and estimated to be worth more than $14.6 billion.
Identify And Address Customer Pain PointsOne of the issues Lego had to address was customers’ dissatisfaction with delivery orders. In order to track the problems, Lego partnered with Medallia to address customer inquiries and obtain metrics to determine a plan of action. Comment: Retail's future is virtual and social, with a dose of science fiction. Burberry and Mulberry face branding challenges in luxury market. The luxury market is currently in slowdown and big brands such as Prada, Mulberry and Burberry are feeling the pinch.
Slow economic growth and political instability in China, Russia and the Middle East has led to a clampdown in spending which in turn has had a catastrophic effect on luxury goods firms. Consultants Bain and Company were recently quoted as saying that this slowdown will put the brakes on the global luxury goods sector for some time, with many brands reigning in any rapid expansion plans. But what does this mean for British firms Mulberry and Burberry? Mulberry is a company in deep trouble. It has issued numerous profit warnings in the past two years and retail sales in the UK have slumped by 12% in the six months to end of September. This was the start of the brand’s demise. Part of the problem was that savvy consumers did not see the value in paying inflated prices for bags that would have cost them much less a few years ago. But all is not lost for the luxury market. The power of branding. We've created this guide to shed some light on the subject of branding; what it is, how it works and how you can use it to help improve your business or the perception of your service.
We'll explore: What we mean by brand and brandingHow the web has changed the relationship with customersHow branding can help your businessThe key ingredients of any good brandHow to communicate, manage and develop your brand identityBranding for different market sectorsThe relationship between design and branding What do we mean by the word brand?
The words brand and branding are thrown around liberally by all sorts of people in different contexts and with different meanings in mind, so it may help to start by asking: what exactly is a brand? The simplest answer is that a brand is a set of associations that a person (or group of people) makes with a company, product, service, individual or organisation. If Coca-Cola were to lose all of its production-related assets in a disaster, the company would survive. Debranded Fragrance Shops : perfume store. As evidenced by the concept behind this perfume store, branding plays an important part in how customers react to products and inform their purchasing habits.
Based in Milan, the new Desirée Parfums shop debrands their stock so consumers can make their decisions based solely on scent. Surely an interesting experiment in marketing, the perfume store organizes its wares only by what Springwise calls "aromatic quality. " The idea behind this retail experience will prevent people from simply purchasing the most expensive options or sticking to what they may consider their signature scent. Even though perfume commercials are often confusing and non-sensical, the celebrity endorsements and emotive ad strategies clearly play an important part in how people pick their fragrance. The Making-of Innovation » Getting Closer to the Consumer: How Nivea Co-Creates New Products. Authors: Bilgram, V., Bartl M., Biel, S. published in Marketing Review St.
Gallen, 1/2011. Co-creation has become a prevalent approach taken by innovation leaders to excel in innovation management and complement internal R&D activities. In this article the authors will introduce the co-creation process at Nivea and describe how Nivea co-developed a new deodorant with consumers. The focus will be on two different co-creation tools – the netnography method geared to gain consumer insights from social media and an online co-creation session to evaluate and further enrich ideas.