The Marketing Mix Strategies

Strategic marketing strategies are necessary cornerstones of competitive strategy, increased market
share, and shareholder value for most companies in today's turbulent and sophisticated market
place. Winning companies are those able to manage marketing mix successfully. Marketing mix is a
set of controllable variables that a company can coordinate to satisfy its target market. The 4Ps of
marketing mix namely Product, Price, Place and Promotion, which are vital for the success of a
company's products and help the company to achieve market leadership.

2.1 Product

Marketing mix planning begins with building a need-satisfying offering that brings value to target
customers. This offering is a part of the customer-company value exchange and becomes the basis
on which the company builds profitable customer relationships.

2.1.1 Product Portfolio

Products such as Duplo, Lego, Lego Techno and LEGO MINDSTORMS, as well as LEGO’s recently
developed online environments, where people can create avatars, interact, share information and
get inspired. Platforms and forums for social medias increases as well, digital play experiences as
well as a new concept called LEGO Design byME, allowing consumers to put together virtual Lego
models on their computers with the option of buying them.

Legoland (trademark in uppercase as LEGOLAND) is a chain of family theme parks. The parks are
marketed to families with younger children (11 and under), and although the attractions include a
number of roller coasters, the roller coasters are not as numerous or as extreme as those in other parks,
and there is a greater emphasis on rides suitable for younger children. Legoland parks are split into
various areas, which are consistent among the chain's parks. For example, all six of the parks include a
Lego miniland, a model village which includes models of landmarks and scenes from around the world,
made from millions of genuine Lego bricks.

Here we take a brief look at some of the Lego 's popular parks and products. For instance, the brand
new Legoland Water Park, which has more than 20 unique water based rides with over 3 million liters of
water. There are also over 70 specially built LEGO models. It is the largest LEGOLAND Water Park in the
world and the only one which guests can enjoy by itself or in combination with the Legoland Theme Park.
(Jensen Chua, 2013)
Attractions within the Legoland Waterpark:

Build-A-Raft River
What’s more exciting that building stuff on land? Building your best LEGO® raft with
colourful LEGO bricks, of course. Then, take it down the meandering river for a relaxing float
amidst LEGO models, flowers and palm trees.
Red Rush
Perfect for the whole family, a ride on this tube ensures a not-to-forget outing as it slides
down a 312-feet long curving track.

JOKER SOAKER
Save the loudest cheer for the most amazing water-based playground, filled with interactive
play areas on multiple levels and slides for a non-stop adventure. Watch out for the giant
splash from the 300-gallon bucket that spills with a gush to soak you and sweep you off your
feet.
Lego Products:
LEGO focus on and interact with consumers to develop future product and services in line with
consumer needs, preferences and interests. LEGO is an interesting example because LEGO.com
currently ranks as the No. 1 family and children website, underlining their success in creating an
online environment for their target groups. Such products are Duplo, Lego, Lego Techno and LEGO
MINDSTORMS that capture the interest and satisfaction of the customers ,receiving high rate and
comments.
LEGO MINDSTORMS EV3

Lego Mindstorms is a hardware software platform produced by Lego for the development of
programmable robots based on Lego building blocks. Each version of the system includes an intelligent
brick computer that controls the system, a set of modular sensors and motors, and Lego parts from the
Technic line to create the mechanical systems. Lego Mindstorms give you the power to create
and command your own robotic LEGO creatures, vehicles, machines and inventions! By
combining LEGO elements with a programmable brick, motors and sensors, you can make
your creations walk, talk, grab, think, shoot and do almost anything you can imagine! The
31313 set comes with building instructions for 17 awesome LEGO robotic designs – a
humanoid robot, a shooting scorpion, a slithering snake, a fork lift, a race truck, an electric
guitar, a walking dinosaur and many more! Each robot comes complete with its own unique
features and a program that controls the robot’s behavior!
LEGO DUPLO
K

JO

Lego Deplo(trademarked as DUPLO) is a product range of the construction toy Lego, designed for
children aged 1½ to 5 years old. Duplo bricks are twice the length, height and width of traditional Lego
bricks, making them easier to handle and less likely to be swallowed by younger children. Despite their
size, they are still compatible with traditional Lego bricks. Initially launched in 1969, the Duplo range has
gone on to include sets with figures, cars, houses and trains.
2.1.2 Branding

A brand is an intangible concept that comprises various aspects, it is a valuable asset to a company as a
brand represents everything that a product or service means to consumers. (Amstrong,2012) It holds a
distinctive position in consumer's minds based on past experiences, associations and future expectations.
It is a short-cut of attributes, benefits, beliefs and values that differentiate, reduce complexity, and
simplify the decision-making process. (Iacobucci, Shannon,&Grigoriou, 2015)

Branding means the use of a name, term, symbol, or design—or a combination of these—to identify a
product. It includes the use of brand names, trademarks, and practically all other means of product
identification. (Perreault, Cannon, &McCarthy, 2008) Lego is regularly brand-building through its
numerous innovations and new products. The company's brand promise of keeping their values,
heritage and culture – expressed through family ownership - has given us a long term
perspective and a focus not only on current, but also on the future generations. Lego
ensures their presence makes a positive impact, and that they must measure themselves
against the very best - and truly excel in the spaces where ’only the LEGO brand could do
this’.

K BFDF H

DHD ER

LEGO brand is more than simply our familiar logo. It is the expectations that people have of
the company towards its products and services, and the accountability that the LEGO Group
feels towards the world around it. The brand acts as a guarantee of quality and originality.
As such, the brand name helps Lego to stand for a competitive edge on the market as it
promotes the image and goodwill of the theme parks and the products in the mind of
customers.
2.1.3 Packaging
Good packaging not only to prevent spoiling and damage of the products, but can makes
products easier to identify and promotes the brand at the point of purchase, as well as link
the product to the rest of the marketing strategy.
LEGO SET

During the packaging process, bins open and close automatically, dropping
precise numbers of bricks into each polypropylene bag. A machine weighs these
bags to make sure their contents are correct. If a specific bag's weight is
incorrect, an operator can replace that bag, rather than having to discard an
entire set. At the end of the process, packaging operators fold the boxes, add any
necessary pieces and make sure that the machines haven't made any mistakes.
Quality assurance testers also perform numerous inspections and tests on Lego
elements. Machines perform drop, torque, tension, compression, bite and impact
tests to make sure the toys are sturdy and safe. Technicians use a measuring
beaker to determine whether pieces could cause a choking hazard for small
children. For every million Lego elements, about eighteen, or 0.00002 percent,
fail to pass the tests. (Tracy V. Wilson, 2006)
If the customers want to build something really impressive, a kit is provided along
with the Lego Set that includes all the pieces and step-by-step instructions on
how to put them together. Building from a kit is pretty easy -- the instructions don't
even use words, and if you lose your instructions you can download a new set
from the Lego site.
2.1.4 Segmentation
LEGO have already made huge organizational change to gain better understanding of
consumers, and are doing an effort to do it even better. The SAP system(a system to keep
track of customers) makes LEGO able to specify offers for certain target groups which in turn
will drive loyalty towards LEGO. The four groups are:
–Lead Users; Children and adults who is heavily engaged in LEGO (top of pyramid)
–One-to-One layer; Group which LEGO keeps an ongoing dialog
–The Community Layer; Users of online games, communities, etc.
–Active household layer; Have bought LEGO sometime in the past. (bottom of pyramid)
SAP has several features that LEGO benefit from such as:
“Loyalty management software from SAP, integrated with The LEGO Group’s SAP ERP and
SAP CRM platform, helps ensure rewards offered to each group are synchronized with what
they value and their level of engagement with the brand.”

2.1.5 Targeting
With LEGO’s SAP system and overall strategy, they are able to target the different
segments, with offers in line with the relationship. LEGO has centralized departments having
direct consumer contact, making individual interaction more structured and targeted. LEGO
keep contact with consumers based on their specific traits within the SAP layer system
2.1.6 Positioning
A product's position is the way the product is defined by consumers on important attributes—
the place the product occupies in consumers' minds relative to competing
products.(Amstrong, 2012) Lego strives to bring fun into people's lives. It positioned itself as
fun, happiness, high quality and services for every family globally, especially to Malaysia. It
tries very best to use Malaysia as a new base to further develop Lego into a trusted and
preference brand that overleap others brand within the same range of products and services
provided.
2.3 Place
Producing a product and making it available to buyers and able replenishing demand in
shorter lead times requires building relationships within the whole supply chain,or known as
value delivery network. In today's new competitive environment, one of the critical elements
for successful marketing strategies is an underpinning supply chain effectiveness and
responsiveness that delivers superior value and service at less cost.
As a marketing strategy, place also known as physical distribution which is concerned with
the accessibility and availability of products to targeted consumers at the right place at the
right time. Distribution component mix is a combination of elements such as marketing
channel outlets, storage facilities, inventory control and shipping facilities. (Linda, 2016)