One lesson the Lego’s growth strategy teaches us is how important it is to stay agile. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences. As Head of LEGO Retail, Claus Flyger Pejstrup, said: “Our LEGO stores are a great tool for building brand awareness and emotional connection with our fans.”. To jump straight to our ... read more, Welcome to the second feature in our new Creative Spotlight series. Just tell us where to send it. Since 2007, Lego has tripled its revenues globally and achieves an operating profit margin of almost 25%! If you’re looking for brand growth strategy examples that you can borrow and adapt, Lego’s shows you how scaling back can sometimes be beneficial. It will also impact our costs. “Lego products – the whole idea of creative play experiences – is something that resonates strongly with Chinese consumers.”. How many key strategic business strategy concepts can you spot: Long-term business planning; Joint ventures and strategic partnerships; Organic growth through new product development Learn how to switch to the growth mindset in 7 easy steps, and how it can boost your career. The Financial Times believes the LEGO Group now has a “robust growth model” and that expanding its footprint in China is a smart move. In constant currency, revenue grew 7 percent compared with 2017.Operating profit grew 4 percent to DKK 10.8 billion. You're now subscribed to our mailing list to receive exciting news, Lego’s growth plans included adding stores to less central cities in China. Global consumer sales grew 3 percent, while revenue for the full year grew 4 percent to DKK 36.4 billion, up from 35.0 billion in 2017. They tripled their workforce and tripled the number of lines they offered, and this had left the company over-extended. Stock was piling up in warehouses because Lego had too many product lines, and there just wasn’t enough room on the shelves in toy stores. Revenue growth in all market groupsRevenue in all market groups grew. reports, and other updates! Net profit was DKK 8.1 billion, an increase of 3.5 percent.Cash flow from operating activities remained strong at DKK 9.8 billion.Market share grew in all major markets, bucking overall industry trends. BILLUND: February 27, 2019: The LEGO Group today reported earnings for the full year ending December 2018. It focuses on using new product development and innovation as the driver of revenues and profits - to great success. Operating profit was DKK 10.8 billion compared with 10.4 billion in 2017 an increase of 4 percent. Knudstorp said this pruning back would prepare the company to grow back stronger: “We will build a smaller and less complex organisation than we have today, which will simplify our business model in order to reach more children. We will continue to invest in both our core and in new technology which brings the brick to life in wonderful and unexpected ways.â. In China, a strategic growth market for the Group, revenue grew strong double-digits as the brand expanded into new cities and built its presence on ecommerce, digital and physical platforms. CEO Niels Christiansen announced that 80 new stores would be launched in China during 2019, adding to the existing 60, and giving it a presence in 35 cities. In China, the company will accelerate expansion and open 80 stores in 18 cities during 2019, starting with a new flagship store in Beijing which opened on February 22. Much cheaper & more effective than TES or the Guardian. If you have any questions, use the chat, call or send us an email, Lego has won cases against six copy-cat companies, UK consumers have named Lego as their favourite brand, to use sustainable materials in its products and packaging by 2030, 6 Ways to Break Through the Barriers to International Expansion. “The growing middle class, importance of education, and growing economy make India a logical next step in our efforts to reach many more children around the world,” he added. Lego has been delighting kids (and bringing pain to grownups’ feet) for close to 90 years. In the video, Joergen Vig Knudstorp, chief executive officer of Lego, talks about the company's performance and the outlook for growth. âWeâd like to thank our talented colleagues who did an outstanding job executing plans during the peak holiday season.â. Great example of the use of strategic partnerships to drive organic growth: Jim co-founded tutor2u alongside his twin brother Geoff! Goldin and her team are now working to position Lego as one brand globally, and are preparing for future growth by creating a “holistic, immersive experience for consumers”. In constant currency, revenue grew 7 percent compared with 2017. When establishing a new growth strategy, Lego decided to set its sights on China, having already seen double-digit growth there. Our latest insights into this industry are below. West Yorkshire, The success comes despite issues with counterfeiting, where other manufacturers have tried to rip off Lego’s colourful blocks and branding. “Store expansion should help secure sales growth. For marketers, insights leaders, and innovators alike. In 2018, the LEGO Group bucked toy industry trends to increase its market share in all major markets. We also grew market share in our largest markets around the world, bucking industry trends. The problem, said the family-owned Danish company, was weaker demand in established markets such as the US and parts of Europe, where a saturation point had been reached. Check out 6 Ways to Break Through the Barriers to International Expansion. “We have now come to a point where we are really active to the new wave of growth. That means Goldin’s role encompasses both product and marketing, which she describes as a “really big shift” for the company. Although, he added that the company would not be aiming for the “supranatural” growth rates of the past. Chief Executive Niels Christiansen said Lego had taken “the active choice” to bring down operating profits by 16% in order to invest more. âLast year, we were pleased with the response to our homegrown themes such as LEGO City and LEGO Technic. “Within 10 years, there will be 100 million kids in India living in middle-class families,” Christiansen told the FT. “They are strong into education and products like Lego are very high on the wish list. A positive impact on society and the planetDuring 2018, the LEGO Group continued to live by its Planet Promise and its aspiration to have a positive impact on the society and the world children will inherit. That’s how Lego established a sound growth strategy and pushed forwards with confidence. It doesn’t have to be supranatural, we just want to make sure we are reaching more kids and we stay relevant and engaging. We were also encouraged by the positive reaction to new products and experiences which integrated digital play, such as the augmented reality app, AR Playgrounds, the DUPLO Cargo Train, which introduces coding to our youngest fans and LEGO BOOST which makes robotics intuitive and fun. Lego’s new brand growth strategy paid off – they returned to growth again in 2018, with profits and sales both increasing by 4%. Lego’s new brand growth strategy paid off – they returned to growth again in 2018, with profits and sales both increasing by 4%. In established markets, such as the United States and Western Europe, growth was in the low-single digits. And with a new flagship store in Beijing, featuring attractions like Lego replicas of the Great Wall of China and Forbidden City, it looks like the toy brand will soon be equally loved by Chinese consumers. In the five years leading up to this point, Lego had invested in massive growth. Boston Spa, The LEGO Group will also continue to invest to grow in newer markets as part of its ambition to reach more children around the world. 2018 Performance Highlights:Global consumer sales grew 3 percent in 2018 compared with 2017.Revenue for the full year grew 4 percent to DKK 36.4 billion. Reaching saturation point can come as a surprise, like it did for Lego, and then you may be faced with suddenly having to start from scratch in a new market to secure sales. Be the first to get access to reports, research, new product info, and events. The toymaker recognised the need to expand into markets that were still growing, such as China, but was struggling to do so, said chairman of the group Jørgen Vig Knudstorp, in a press statement. He succeeded Kjeld Kirk Kristiansen and is the first non-family member to head Lego. These shifts gave us the opportunity to strengthen our partnerships with retailers and find new ways to connect with shoppers and consumers across digital and physical channels. The Group will further expand its presence in the Middle East and explore opportunities in new markets where there is a large and growing middle class population, such as India. We would rather do the investments upfront to be leading that change.”. Each month we select an advertising campaign that’s been making waves in the industry and put it to the (At)test by surveying 250 UK consumers. You can minimise risk with thorough consumer research, especially gathering consumer insights that let you gauge both interest in your brand among native shoppers and any cultural differences you’d need to adapt to. The company also plans to open more than 70 Lego brand stores outside of China this year, including its fifth flagship store in Amsterdam, The Netherlands. The business has never made an acquisition. What motivates our colleagues around the world is the role they can play, big and small, in helping more and more children around the world learn through play.â, For further information:LEGO Group Press OfficePh: +45 7950 4919media@LEGO.com. All students preparing for mock exams, other assessments and the summer exams for either AQA or Edexcel GCSE Business. That creates a lot of hunger in the organisation,” she concludes. “We’ve experienced supranatural growth, but when you are experiencing that it is sometimes difficult to see what is going to be the next wave. “We are making these investments from a sound financial base to capture the opportunities being created by mega-trends, such as digitalisation and global demographic and economic shifts which are reshaping the industry. “We began with shops in the major cities and are now looking to reach more children by establishing stores in more cities as we see increasing interest and demand for our products,” said Trangbaek. Already thinking about how to grow your brand? Meanwhile, Lego will “invest heavily in e-commerce”, ensuring it won’t lose sales to online rivals like Amazon, which was blamed for last year’s collapse of Toys R Us. Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs. “We have the ambition of getting to as many kids as we can around the world, and getting to that means we have to keep gaining market share.