We went to see our friends at MV Nordic in Denmark yesterday. The final paperwork is coming together for our Joint Venture, Frog Nordic, and everything should be sorted within the next few weeks. We have a team of developers dedicated to the Danish project – their first project was to translate all of Frog into Danish, and to add the Danish curriculum – and obviously add some Lego background images! They’re now moving on to some new funky stuff around planning.
There are two ways that we could approach Denmark.
1. We could make the price really low, provide little in the way of support and sell as many little Frogs as possible, making a good lump of money straight away. Many of the companies in Denmark are taking this approach. This is a short term, market grabbing strategy, but it makes building longer term relationships difficult because there isn’t enough money to pay for making sure that it works. Think of it as paying £50 a year for someone to maintain your car for you. They might win a lot of business initially, but you aren’t likely to see them on your drive very often.
2. The other way of doing it is to charge enough to allow us to spend the time making sure it works in the schools. Obviously having a higher price would likely mean that we would attract less schools. Later sales would come ONLY AFTER we’ve proved that it’s worth paying the extra for Frog. This is the strategy we took in England. Think of it as paying £300 a year for someone to maintain your car for you. They’ll find it harder to get people to pay that at first, but if they do a great job, you’ll tell your friends about them and slowly they’ll end up on everyone’s driveway. But if they don’t do a great job, they’ll end up with nothing.
Which would you do?