Storytelling: An Emotional Branding Approach Based on Consumer Experience--The Case of LEGO

Abstract

Founded in 1932, LEGO is now a giant of toys for all ages that have taken the world by storm. However, at the end of the 20th century, LEGO was on the verge of bankruptcy and its performance was deteriorating. Today, LEGO is back on top. This study focuses on a case study using the 4P to explain how LEGO has re-emerged as a toy giant company and analyzes the important role of storytelling marketing in it. LEGO regrouped the brand's core products and values, focusing on their classic products. They heavily use story marketing to attract loyal consumers by giving exclusive stories to their products. They are also using storytelling to attract more consumers by cutting costs and increasing the number of ways to buy and lowering prices. The study concludes that utilizing these strategies effectively will help brands to a great extent, and brands must be clearly positioned to create an image that cannot be replaced by other brands. At the same time, storytelling provides consumers with a sense of "immersion" that shapes their emotional foundation for LEGO and makes it impossible to replace. Therefore, some companies may consider this as a starting point for choosing the right strategy and defining the brand's identity and positioning. This study can be used as a reference when planning a company's future or when choosing to create a branding effect.