Lego had a new product idea. But they were not sure how to offer it to their customers. They looked for a smaller and less costly marketing method before testing it in the market. Danish toy company finally turned to a crowdfunding platform.
The result was perhaps even above the expectations of the Lego executives. The new FORMA series, which the company set out with 500-order target, attracted great attention and received more than five thousand orders. User feedback was also enormous. Lego had the happiness of discovering a brand new marketing area.
Lego is not the only big name to succeed in a crowdfunding platform. Last year, the Tyson Foods innovation unit started a new brand of protein chips from vegetables and cereals and turned to crowdfunding. With a pilot study lasting 90 days, the new product was sold in a limited number of supermarkets. The pilot program was part of the Tyson Innovation Laboratory.
Coca Cola also sold its Valser natural mineral water by a crowdfunding campaign. Although mineral water was popular in Europe, executives were unsure whether they would be suitable for US consumers. The campaign which lasted a month was of a great interest.
The brands have now know that “if you build it, they will come” model doesn’t always work. It’s harder than ever to enter the radar of consumers with more options than ever before. At this point, crowdfunding seems to be a terrific alternative marketing method for them.
With crowdfunding, consumers get both early access to products and with a much more affordable price than on the market. The benefits for brands are even greater. They get a special consumer profile willing to make feedback and research tests at very low cost. It’s a pretty lucrative situation for both sides.