Subject:
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Re: KKK described latest restructuring as "last chance" for Lego in FT article
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Newsgroups:
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lugnet.general
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Date:
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Thu, 18 Mar 2004 00:05:35 GMT
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Viewed:
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1053 times
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In lugnet.general, Dave Schuler wrote:
> In lugnet.general, Kelly McKiernan wrote:
>
> > Maybe if LEGO enforced definitive shelf delineations with retailers,
> > that would help.
>
> I've wondered about that, as well. Honestly, why should TLG have
> any authority to dictate where Wal*Mart and TRU choose to place their
> product?
Because they paid for it at the corporate level and some upstart manager is
overstepping his authority in not enforcing it? Just guessing here, but don't
rule it out.
> I mean, sure, TLG could elect not to distribute via those two
> retailers, but who would be hurt more by such a move? Wal*Mart might
> be slightly inconvenienced, TRU might suffer a little, but TLG would
> likely be dealt a nearly fatal blow, considering its current, troubled
> status. And I'd guess that MEGABLOKS would benefit mightily all the while.
Yep.
> I can see why it might be good practice not to intersperse the various
> brands within a single shelf-space, but if Wal*Mart puts MEGABLOKS on
> one shelf and LEGO on the shelf beneath it, boo-hoo for TLG.
Unless it's a violation of a marketing or space allocation agreement, that is...
> Grocery stores don't sell brand-name pasta sauce in one section and generic
> sauce in another; both are on the same shelf, usually right next to each other.
You need to get out more, Dave! This is not always the case any more. My local
Meijers has the name brand pasta in the gourmet ethnic foods section and the
generic way off in a different part of the store. Supposedly an "improvement"
BUT if you ask me, it's just a way to increase dwell time in the store and get
me to impulse buy candy I don't need... but I digress.
> Why should TLG get special dictatorial powers re: product placement?
I think the issue is that LEGO pays for space, and supplies decorative things to
dress up shelves and brand them as LEGO area shelving, presumably as part of a
marketing agreement at the corporate level, and then the MB and other clone
stuff gets mixed in, wasting LEGO money. (money on marketing agreements and
copay adverts and stuff, and money spent on shelf and space decorations)
Absent such agreements I do agree.
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