Brand repositioning is a powerful strategy companies use to adapt to changing markets, evolve with consumer preferences, and secure long-term growth. Repositioning is not just about tweaking a logo or refreshing a marketing campaign; it’s about shifting the core perception of a brand in the minds of consumers. The goal is to better align the brand with the evolving needs and desires of the market while maintaining its core values and essence.
“ From outdated toy to
educational, creative force.”
The lego case.
One of the best examples of successful brand repositioning comes from Lego, a brand that was able to transform its identity and regain its dominant position in the global toy market. Let’s look at how Lego executed its repositioning and the broader principles behind successful brand shifts.
For Lego, the early 2000s marked a period of struggle. The company, once a leader in creative, hands-on play, was facing declining sales. As video games, digital entertainment, and other tech-driven toys began to take over, Lego’s classic brick sets were seen by some as outdated. The brand was losing its appeal to children who were more interested in the digital world than in building physical models.
This created a strong need for repositioning: Lego had to figure out how to remain relevant in a changing market without abandoning its beloved foundation of creativity and building. Lego needed to reconnect with its audience and adapt to the new demands of modern consumers.
Once Lego understood the challenges and opportunities ahead, the company embarked on a strategic repositioning journey. Below are the key steps that helped Lego successfully navigate the process:
Focusing on Creativity and Learning: Lego repositioned itself as a brand that promotes creativity, learning, and problem-solving. The idea was to emphasize the educational value of Lego sets, framing them not just as toys, but as tools for developing essential skills. This was reflected in marketing that highlighted how Lego helped children with spatial awareness, engineering concepts, and imaginative play.
Licensing and Collaborative Partnerships: One of Lego’s most successful moves was forming partnerships with major movie franchises like Star Wars, Harry Potter, and Marvel. This strategy introduced themed sets that appealed not only to children but also to adult fans of Lego (AFOLs). By tapping into the pop culture zeitgeist, Lego was able to reinvigorate interest in its products and capture a new, more diverse audience.
Expansion into Digital: Recognizing that children’s play habits were evolving, Lego embraced digital platforms. They developed video games, mobile apps, and animated TV shows based on their brick-building products. This move allowed Lego to meet children in the digital space while still promoting the brand’s core strengths of creativity and hands-on play. Their “Lego Movie” franchise was another critical piece of the puzzle, making Lego cool and relevant in a new way.
Innovative Product Lines: Lego diversified its product lines to cater to a broader range of ages. The introduction of Lego Technic and Lego Architecture lines, which appealed to older children and adults, helped the brand maintain relevance across generations.
Emphasizing the Lego Experience: Beyond the products themselves, Lego also focused on creating unique experiences. Lego stores became interactive, hands-on spaces where children could build and play with Lego pieces in an immersive environment. Lego Land theme parks further emphasized this approach, reinforcing the idea that Lego is more than just a toy — it’s an experience.
Lego’s repositioning is widely considered a massive success. The brand not only regained market share but also became more globally recognized and relevant across multiple generations. By 2014, Lego overtook Mattel to become the world’s largest toy manufacturer. Lego’s innovative products, strategic partnerships, and digital expansions helped it remain a dominant player in an increasingly competitive toy market.
In summary, Lego’s successful repositioning shows that understanding market trends, staying true to a brand’s core values, and being open to innovation are crucial elements in navigating the challenges of brand evolution. By focusing on creativity, expanding into new markets, and engaging with consumers on a deeper level, Lego transformed itself from a struggling brand into a powerhouse that resonates with customers worldwide.