Marketing Plan for a New Product Marketing Plan New Product Launch

Background and Competitors

Brite Briks is a multinational company in the business of manufacturing construction toys. Brite Briks ranks third in size with Lego leading this market, followed by Mega Bloks (Solomon, 2013). Both Legos and Mega Bloks are inter-competitors as the toy construction products they sell are very similar, and fundamentally compatible -- although the brick to block match is not exact. Over 100 countries offer Brite Briks for sale, featuring a line of roughly 100 items in four block sizes (Solomon, 2013). The exponential growth in Brite Briks' sales over the past five years indicates that the company's overall approach to marketing to its targets is effective. Indeed, Brite Briks has the largest market share in the preschool construction toy segment (Solomon, 2013).

Situational Analysis

Environmental analysis

Prestige of American made products

Branding and distribution key to competitive advantage

Extensive Asian market, particularly Japan

Growing interest in pop culture and media influence

Internal environment

A global market share leader in the early childhood segment

Lack of distribution network into new markets

Rapid growth and innovation culture

Product vulnerable to competitors as patent protection is not an option (Lego)

SWOT Summary

Strengths -- Can utilize international experience and brand name to achieve economies of scale while entering the Japanese market

Weaknesses -- Address inability to patent and protect product; discourage local competition by entirely customizing brand personality and product line for Japanese market

Opportunities -- Integrate distribution with Japanese channels to cultivate relationship-focused retailers; hire Japanese customer-facing representatives to increase local feel of products and services

Threats -- Redesign packaging and offer integral storage to accommodate the limited space in Japanese homes; market the redesigned kits in Europe, as well

Marketing Objectives and Strategies

The marketing concept centers around the creation of mutually satisfying exchanges that are based on two important factors: An understanding of what customers need and the cost of satisfying those needs (Solomon, 2013). Thus, value is created for customers when organizations meet customers' needs; that said, these customer needs cannot be met by customers on their own, or else the customers would prefer not to try to meet these needs by themselves. Indeed, key metrics that Brite Briks will use are perceived product quality and perceived service quality (Lowe, 2003). Other marketing objectives are related to customer loyalty and retention, which is crucial since consumer product differentiation in this sector is very low. Although the target market segments that are most interested in toy construction materials are not particularly price sensitive, two other relevant measures are relative price, and customer and segment profitability. These metrics will be shown in a marketing dashboard (Lowe, 2003).

Identify market segments. Brite Briks makes a great toy, especially for the preschool market: First Builders sets are designed for Mega Blok's youngest customers. However, Legos lead in the market is both chronological and reputational, as the brand is considered superior to both Brite Briks and Mega Bloks by construction toy aficionados. Brite Briks is content to be a follower within the industry. However, just as Mega Bloks has focused on dominating the pre-school market for toy construction blocks, Brite Briks is determined to increase market share in the toy construction materials for girls. For example, Brite Briks is developing a line of travel destination kits that will align with the fashionable wardrobes of ethnic Barbie dolls.

Brite Briks may retain an orientation to product over service. Yet the company shows strong movement toward "the new dominant logic for marketing" that positions service as a central deliverable in all transactions in which the business engages (Solomon, et al., 2013, p. 242). This would mean that Brite Briks must recognize that the products the company manufacturers actually contribute less to the company's value proposition than does the provision of service. Here is one way that Brite Briks has interpreted the new-era orientation: The customer service pages on the website provide easy systems for ordering replacement parts for pieces that are missing from kits, are of poor quality, or have been recalled. In addition, kid-friendly, illustration-based instructions for assembling the kits can be accessed on the customer service. This level of service keeps both children and parents happy and engaged with the product.

Close Competitor Differentiation

In a rather brilliant move, Brite Briks co-opted licensed character brands as part of their construction toy offering, thereby meeting a need...

That is to say that Brite Briks has created core product (the blocks or bloks) that can be used with other major licensed character brands. Brite Briks figures are not constructed of interchangeable blocks in the manner of Legos figures, but are articulating, single unit figures ("Diffen," n.d.). Notably, Lego is also trending in this direction with its characters as new kits are released, potentially impacting consumer product differentiation.
Competitors' major strengths and weaknesses may be categorized in the following manner.

Unit quality and precision: Legos is the inarguable leader with respect to high quality precision bricks that are small in size, such that many pieces are needed to construct replica objects and a wide variety of designs. Mega Bloks produces many specialty pieces that are designed to replace several Lego bricks that are needed to construct a similar item or concept. Brite Briks pushes the single unit concept even further by manufacturing a wide variety of kit components that are more representative of the "pop bead" than a construction toy. Naturally, this is largely attributable to Brite Briks focus on the segment populated by girls in the range of 4 to 10 years of age. Consumer complaints related to Mega Bloks coalesce on the problem of the units not fitting together well or not fitting together tightly enough to maintain the integrity of the structures consumers build.

Brand equity. Legos experiences robust brand equity. Legos fans are typically purists -- not accepting substitutes -- and loyalist, continuing to buy Legos bricks and kits well into adulthood. Mega Bloks has suffered from bad press about their mishandling of the recalls of the Magnetix and Magnaman toys. In addition, many Magnetix and Magnaman magnet-based toys produced by Brite Briks have been recalled as hazardous to small children (Morgenson, 2007). The media reported that Brite Briks was wholly uncooperative with the Consumer Product Safety Commission, delaying recalls and aggressive communication of the dangers to children -- one toddler tied and other children required complicated intestinal surgeries and long hospital stays children (Morgenson, 2007). Instead, the company focusing on a product redesign rather than ensuring that defective magnet-based toys were removed from retail shelves. While Mega Brands raised the recommended minimum age to 6 years, additional precautions could have been added to the packaging (Morgenson, 2007).

Mega Bloks was sued over the quite blatant use of the interlocking brick system that Lego had trademarked. But higher courts in Canada and the European Union permitted Mega Bloks to continue using the design. Meanwhile, the Lego's bricks patent expired. Attentive consumers learned that Mega Bloks acquired the Rose Art company, which was the manufacturer of the Magnaflix and MagnaMan toys that were recalled. This association lowered sales on of Rose Art products, thereby further opening the way for Brite Briks to pursue the young girls segment.

Marketing Mix Strategies

Customers may have difficulty differentiating Lego Duplos from Brite Briks, or even from Mega Bloks' First Builders, and the emphasis on licensed characters pegged to event marketing may be straining Legos' lead in the sector. That is to say that both Brite Briks and Mega Bloks are establishing deep partnerships with companies producing licensed character figures, such as Disney and Mattel that are tied to the film and television industries. The diminished prospects of providing sufficient value to customers to sustain their consumer differentiations means that product may not contribute strongly to the marketing mix. Pricing does contribute some to the brand's marketing mix, as Brite Briks kits are generally a few dollars cheaper than comparable Legos kits. Notably, the bricks / blocks of both brands are largely compatible.

Distribution seems to be a key marketing area for Brite Briks. The company is adjusting packaging to better compete in the Japanese market (Solomon, et al., 2013). Through effective use of market research, Brite Briks identified package redesign that increases the brand's appeal to Japanese consumers (Clark, 1990; Lundby & Rasenowich, 2003). The communication strategy of Brite Briks conveys a brand image of a toy that is enjoyed by all family members, and provides a mechanism and context for fathers to spend more time engaged in meaningful play with their children. There is an interactive website play space for children old enough to use a computer for recreation.

Brite Briks communicates announcements and news about events that offer fun times for kids and families, and that also underscore the relation between Brite Briks and the licensed characters featured in many of the kits. Brite Briks has an active social media ambassador base and maintains newsworthy blogs and monitors social media traffic (Tedeschi, 2003). Facebook, Twitter, and Pinterest are the sites most favored by…