Following the LEGO Group’s disappointing 2017 results, the company intends to improve the effectiveness of marketing strategies.
In the LEGO Group’s annual report, published yesterday, it was confirmed that revenue and profit were both down over the year. For the first time in 13 years, sales did not grow year-on-year. In a press release, the company acknowledged that there is no ‘quick fix’ and that sustainable growth is the goal.
In an interview with CNBC, Chief Marketing Officer Julie Goldin said that changes in the marketing strategy are being implemented as part of the turnaround strategy:
Goldin told CNBC by phone that her teams will target keeping global marketing campaigns relevant, especially in terms of creating content quickly after a new product has launched.
“We allow our people to have to have much more flexibility in terms of making decisions… and making changes that they need to, less hierarchies and less processes, but also making sure that they free up their time (so they don’t just) create many things ahead of time,” she said.
Goldin’s teams will also be using data analytics to measure the effectiveness of marketing, and making sure they understand how it can promote different products.
As LEGO fans know, the brand markets through a variety of channels, making it hard for consumers to avoid.
The company does not break out its marketing spend, but Goldin described it as “significant.” “It’s less about the amount of money; it’s more about the effectiveness of the content,” she said.
How much difference improvements in the marketing of LEGO products makes will become apparent in the months and years ahead, and will depend on how well other challenges the LEGO Group faces are taken into consideration.