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Every Fan is Awesome: How Fans Saved the LEGO Brand

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Asia Tech Podcast http://www.ATP.show
Asia Tech Research http://www.AsiaTechResearch.com

It's strange to think that one of the most iconic, loved brands of our time, LEGO, valued by some at around $150 billion, was once a washed-up has-been. Not many people today know that 10 years ago, LEGO nearly went bankrupt with $300 million in losses. The LEGO case study is a remarkable brand turnaround, perhaps the biggest of our generation. This presentation looks at how LEGO engineered its brand from zero to hero by building the company around its main asset: FANS.

Publié dans : Marketing, Business
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Every Fan is Awesome: How Fans Saved the LEGO Brand

  1. GRAHAMDBROWN.COM Every Fan is Awesome How Fans Saved the LEGO Brand
  2. Build a Brand Worth Talking About GRAHAMDBROWN
  3. GRAHAMDBROWN.COM Contents 1. Success story 2. Bankruptcy 3. Focus 4. Word of Mouth 5. Co-Creation
  4. GRAHAMDBROWN.COM …and we’ll use my BRAND EXPERIENCE flywheel to understand the case study
  5. GRAHAMDBROWN.COM 1. FOCUS 2. FANS 3. FRONTLINE Build the Experience The HOW Join the dots Build platforms Touchpoints Real-world analog events Build relationships Understand WHY Identify core influencers Break down walls that prevent them from engaging you Build on your DNA Find your brand truth What will people miss if you were not there? HOW TO BUILD
 A BRAND WORTH
 TALKING ABOUT 1.  Start  here  with   your  BRAND   truth   2.  Find  the  FANS   that  care  about   your  brand 3.  Give  your   FANS  tools  to   join  the  dots
  6. GRAHAMDBROWN.COM 1. The Success Story The World’s Most Valuable Toy Brand
  7. GRAHAMDBROWN.COM Share the love don’t forget to 
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  8. GRAHAMDBROWN.COM Selling 1200 Bricks a second
  9. GRAHAMDBROWN.COM 4 Billion LEGO figures shipped
  10. GRAHAMDBROWN.COM 86 bricks for every person in the world
  11. GRAHAMDBROWN.COM11 PDF FILE PDF & KEYNOTE FILE GET this Presentation Choose the PDF or PDF + KEYNOTE option
  12. GRAHAMDBROWN.COM Bear  in  mind   that  10  years   ago,  LEGO  was   only  #5
  13. GRAHAMDBROWN.COM Not  bad  for  a   privately  owned   company!
  14. GRAHAMDBROWN.COM To  answer  this  we   need  to  focus  on  what   LEGO  means  not  what   LEGO  is
  15. GRAHAMDBROWN.COM …driven by a 
 strong brand
  16. GRAHAMDBROWN.COM
  17. GRAHAMDBROWN.COM
  18. GRAHAMDBROWN.COM …but
  19. GRAHAMDBROWN.COM something you might not know…
  20. “Nobody at Lego is measured on sales because the most important thing is that kids and retailers return for more in future” - Jorgen Knudstorp, CEO Lego
  21. GRAHAMDBROWN.COM surprised? Here’s  a  brand  with   several  billion  dollars  in   sales…  not driven by sales
  22. GRAHAMDBROWN.COM well, LEGO’s success is all about long term customer relationships
  23. GRAHAMDBROWN.COM …but it wasn’t always that way
  24. GRAHAMDBROWN.COM 2. Bankruptcy The Dark Side of the LEGO Story
  25. GRAHAMDBROWN.COM $300 Million Loss (FY 2003) 10  years  ago,  LEGO   was  in  a  very  dark   place  indeed…
  26. GRAHAMDBROWN.COM LEGO  was  a   DINOSAUR,  a  has-­‐ been  from  another  era
  27. GRAHAMDBROWN.COM “plastic bricks are out of place in a digital world”
  28. GRAHAMDBROWN.COM Coupled with an obsessive focus on product not people LEGO  became   obsessed  with   design  philosophy… …made  the  mistake  of   recruiting  the  best  designers   rather  than  engineers  who   loved  interaction
  29. GRAHAMDBROWN.COM LEGO lost touch
  30. GRAHAMDBROWN.COM We’ll  look  at  the  3   aspects  of  what   turned  the  brand   around
  31. GRAHAMDBROWN.COM So,  what’s  the   blueprint?
  32. GRAHAMDBROWN.COM 1. FOCUS 2. FANS 3. FRONTLINE Focus on public opinion and trends HOW NOTTO BUILD A BRAND WORTH
 TALKING ABOUT Focus on mass market reach Focus on products, engineers and design First,  here’s  how  NOT   to  do.  Here’s  where   LEGO  went  wrong
  33. GRAHAMDBROWN.COM 3. Focus How LEGO rediscovered PLAY
  34. GRAHAMDBROWN.COM LEG GODT
 Danish  for  “play well” This  is  LEGO’s   simple  brand  truth   that  it  forgot…
  35. GRAHAMDBROWN.COM Play = LEGO’s Brand Truth
  36. GRAHAMDBROWN.COM 1. FOCUS 2. FANS 3. FRONTLINE Build the Experience The HOW Join the dots Build platforms Touchpoints Real-world analog events Build relationships Understand WHY Identify core influencers Break down walls that prevent them from engaging you Build on your DNA Find your brand truth What will people miss if you were not there? 1. FOCUS HOW TO BUILD
 A BRAND WORTH
 TALKING ABOUT So,  the  new  CEO  had   to  start  here…  focusing   on  that  brand  truth   and  removing  the  noise
  37. GRAHAMDBROWN.COM What  a  few  insightful  LEGO   execs  understood    was  that  even   in  the  digital  era,  people  still   valued  face-­‐to-­‐face  interaction
  38. GRAHAMDBROWN.COM LEGO needed to reconnect with these FANS to rediscover their truth…
  39. GRAHAMDBROWN.COM39 “I also tell customers that they fulfill  a  vital  role: They are an avenue to the truth. And in today’s world, a CEO needs every avenue to the truth that he or she can find” - CEO Jorgen Knudstorp
  40. GRAHAMDBROWN.COM Let’s look at WHY they built their business around FANS first…
  41. GRAHAMDBROWN.COM 4. Word of Mouth How LEGO made FANS their brand
  42. 1. FOCUS GRAHAMDBROWN.COM 2. FANS 3. FRONTLINE Build the Experience The HOW Join the dots Build platforms Touchpoints Real-world analog events Build relationships Understand WHY Identify core influencers Break down walls that prevent them from engaging you Build on your DNA Find your brand truth What will people miss if you were not there? HOW TO BUILD
 A BRAND WORTH
 TALKING ABOUT Step  2  in  the  brand   turnaround  meant   reconnecting  LEGO   with  the  FANS
  43. GRAHAMDBROWN.COM 13 Million (Unofficial LEGO Youtube Videos) And  it’s  working,  with   this  much  word  of  mouth,   your  marketing  becomes   a  lot  more  effective
  44. GRAHAMDBROWN.COM
  45. GRAHAMDBROWN.COM in the Connection Economy, if people aren’t sharing your brand
  46. GRAHAMDBROWN.COM …you don’t exist So,  LEGO’s  challenge  is  not   trying  to  reengineer  the   LEGO  story  but  engineering   tools  to  help  FANS  tell   theirs…
  47. GRAHAMDBROWN.COM
  48. GRAHAMDBROWN.COM 5 million #LEGO photos on Instagram
  49. GRAHAMDBROWN.COM These “unofficial” conversations are the LEGO brand
  50. GRAHAMDBROWN.COM This  is  what  gets   shared,  what  people   talk  about  and  what   you  can’t  fake  in  an  ad
  51. http://www.google.com/trends/explore#q=lego Google Search Trends: “Lego”
  52. GRAHAMDBROWN.COM LEGO understands that the real heroes of the brand
  53. GRAHAMDBROWN.COM …are the FANS
  54. GRAHAMDBROWN.COM …because  every  FAN   looks  at  your  marketing   and  asks,  “where  am  I  in   this  story?”
  55. GRAHAMDBROWN.COM
  56. GRAHAMDBROWN.COM And  storytelling  is   whatever  FANS  say  it  is:   often  simple  but   devastatingly  effective
  57. GRAHAMDBROWN.COM Now, let’s look at HOW they built their business around FANS
  58. GRAHAMDBROWN.COM 5. Co-Creation How LEGO turned FANS into Factories
  59. GRAHAMDBROWN.COM 2. FANS 3. FRONTLINE Build the Experience The HOW Join the dots Build platforms Touchpoints Real-world analog events Build relationships Understand WHY Identify core influencers Break down walls that prevent them from engaging you Build on your DNA Find your brand truth What will people miss if you were not there? HOW TO BUILD
 A BRAND WORTH
 TALKING ABOUT 1. FOCUS The  key  here  is  how  LEGO   built  their  experience  around   the  interaction  of  FANS:   platforms  to  share  ideas  and   events  to  connect
  60. GRAHAMDBROWN.COM It first starts with breaking down the walls…
  61. GRAHAMDBROWN.COM61 “we actively encourage our fans to interact with us and suggest product ideas”
  62. GRAHAMDBROWN.COM …and building platforms to house the conversation
  63. GRAHAMDBROWN.COM This  is  LEGO  IDEAS  -­‐   their  robust   crowdsourcing  platform
  64. GRAHAMDBROWN.COM REBRICK  is  just  of  the   many  sites  showcasing   LEGO  FAN  work
  65. GRAHAMDBROWN.COM …accepting that LEGO’s “department of great ideas” doesn’t exist inside the company
  66. GRAHAMDBROWN.COM66 “While we have 120 staff designers, we potentially have probably 120,000 volunteer designers we can access outside the company to help us invent” …and  that  starts  with   letting  go  of  the  idea   that  you  have  to  have   all  the  answers
  67. GRAHAMDBROWN.COM …leveraging the idea loyalty transfer of existing FAN bases…
  68. GRAHAMDBROWN.COM Most  popular  project   submitted  to  LEGO  Ideas  -­‐   instant  success  plugging  into   vocal  FAN  base  of  the   Minecraft  community
  69. GRAHAMDBROWN.COM LEGO  IDEAS  helps  the   brand  tap  into  different   communities  and  give  those   FANS  tools  to  connect
  70. GRAHAMDBROWN.COM …no more guess work So  much  traditional   marketing  -­‐  from  focus   groups  to  advertising  -­‐   is  just  pure  guess  work
  71. GRAHAMDBROWN.COM Working with FANS means making the market tell YOU what it wants But  FANS  de-­‐risk   the  process  for  all
  72. GRAHAMDBROWN.COM Market  research?  Pre-­‐ launch  marketing?   Brand  partnerships?  All   of  the  above…
  73. GRAHAMDBROWN.COM Working with FANS means baking marketing into the production process
  74. GRAHAMDBROWN.COM When  10,000  people   support  an  idea,  you   already  have  a  market   ready  for  launch
  75. GRAHAMDBROWN.COM Working with FANS means understanding innovation is what people do, but connection is 
 why the do it…
  76. GRAHAMDBROWN.COM The  key  to  LEGO   success  is  using  online   to  augment  not  replace   the  offline  experience
  77. GRAHAMDBROWN.COM At  the  end  of  the  day,   what’s  shared  is  the  less   important  than  the   nature  of  sharing  itself
  78. GRAHAMDBROWN.COM And  LEGO  plays  a  vital   role  in  helping  FANS   join  the  dots…
  79. GRAHAMDBROWN.COM Working with FANS means creating a FRONTLINE and push your people there…
  80. GRAHAMDBROWN.COM Working with FANS means building a CULTURE that allows employees to think long term and build relationships
  81. GRAHAMDBROWN.COM81 “Nine out of ten times [customers] may tell you something you know or something you consider vaguely relevant…”
  82. GRAHAMDBROWN.COM82 “…but if you dismiss those nine times you never get the tenth time where they tell you something that’s really crucial, you were never aware of. You’d only learn two, three years later, and then of course it’s too late” - Jorgen Knudstorp, CEO LEGO
  83. GRAHAMDBROWN.COM 1. FOCUS 2. FANS 3. FRONTLINE Build the Experience The HOW Join the dots Build platforms Touchpoints Real-world analog events Build relationships Understand WHY Identify core influencers Break down walls that prevent them from engaging you Build on your DNA Find your brand truth What will people miss if you were not there? HOW TO BUILD
 A BRAND WORTH
 TALKING ABOUT 1.  Start  here  with   your  BRAND   truth   2.  Find  the  FANS   that  care  about   your  brand 3.  Give  your   FANS  tools  to   join  the  dots
  84. Build a Brand Worth Talking About GRAHAMDBROWN
  85. GRAHAMDBROWN.COM Share the love don’t forget to 
 hit the LIKE button so other Slideshare users can discover this too
  86. GRAHAMDBROWN.COM86 PDF FILE PDF & KEYNOTE FILE GET this Presentation Choose the PDF or PDF + KEYNOTE option

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