The Impact of Purpose on Pricing Strategy: Insights from Lego's Brand Director
Discover how Lego's brand director, Carolina Teixeira, emphasizes the role of inclusive marketing in creating meaningful and differentiated brand experiences. Uncover the strong correlation between purpose-driven strategies and price elasticity in the competitive market.
Lego’s position as a premium brand is bolstered by its purpose and inclusivity, says director of brand marketing, Carolina Teixeira.
The business considers meaningfulness and differentiation important factors in measuring its brand, with inclusion and purpose playing a significant role in enhancing these measures.
According to Teixeira, speaking at a panel during Creative Equals’ RISE 2024 event on 24 April, purpose and inclusivity are crucial in driving meaningfulness and differentiation, which in turn impact price elasticity.
Lego's core principles are essential for the premium toy brand, according to Teixeira. The brand believes in the concept of "play as a birthright", aiming to connect with all children. This inclusive approach is seen as a "win win" situation, benefiting both the business and inclusivity.
Also present on the panel was Becky Verano, the vice-president for marketing operations and capabilities at Reckitt. She characterized the business as "unashamedly commercially driven", emphasizing the significant role diversity and inclusion play. Verano highlighted that being inclusive is not just about meeting quotas, but driving positive business outcomes.
Chelsea Football Club's chief financial officer, Adriel Lares, completed the panel. Lares strongly believes in the importance of inclusion and sees it as a valuable investment. The club has a large fan base in London, but it is also reaching out to fans worldwide. To connect with a diverse audience, inclusivity is key.
Lares encourages marketers to view their CFO as "curious" rather than "sceptical" about marketing strategies. Whether it's advocating for inclusivity or discussing other investment opportunities, a curious mindset can lead to more innovative and successful marketing campaigns.
Breaking Down Barriers to Inclusivity
Reckitt prides itself on being a company that combines inclusivity with creativity. Last year, the company was awarded six Cannes Lions for their work, all of which had a focus on inclusivity, as noted by Verano.
Vanish, a clothing cleaning brand, won three Lions for its ads that aimed to increase awareness and understanding of autism within the public.
According to the company, each brand can contribute to inclusivity in its own unique way. For instance, Vanish highlighted how wearing familiar and consistent clothing can assist individuals with autism in regulating their sensory experiences. Meanwhile, Durex, a condom brand, focused on promoting LGBTQ+ representation.
Verano also highlighted the efforts of painkiller brand Nurofen in addressing the gender pain gap through its advertising. She mentioned that this shift in advertising approach requires courage from a brand team that was accustomed to focusing solely on the product.
Despite the existing barriers to inclusivity in advertising, Verano pointed out that technology is playing a significant role in overcoming many of these challenges. One example she gave was the use of virtual production studios, which have enabled businesses to be more adaptable and responsive in their advertising strategies. This has made it easier to create different versions of ads, eliminating the need to make adjustments for specific market nuances.
Teixeira explained that Lego does not have a one size fits all approach to inclusive marketing. Instead, the brand focuses on "universal" principles like respect and then lets individual markets customize their strategies.
Editor's P/S:
The article highlights the growing importance of purpose and inclusivity in driving brand success. Lego's focus on "play as a birthright" and Reckitt's commitment to diversity and inclusion demonstrate how these values can enhance meaningfulness, differentiation, and ultimately, price elasticity. The article also underscores the role of technology in overcoming barriers to inclusivity in advertising, making it easier for brands to tailor their campaigns to diverse audiences.
By embracing purpose and inclusivity, brands can connect with consumers on a deeper level, fostering a sense of shared values and loyalty. This approach not only benefits the business but also promotes positive social change by creating a more representative and equitable world. As marketers continue to navigate the evolving landscape of consumer expectations, it is imperative to recognize the power of purpose and inclusivity in building strong and sustainable brands.
