Posted at 10.06.2018
Introduction- Prior to the starting this case study I want to glances on the business history. Its background has been going on to last 60 years or more than 60 years with carpenter called Ole Kirk Christiansen. Ole and his some employees were started out a wooden toys and games in a small building practically in 1932. from then on he starting to selling a gadgets vehicle within the Denmark. It's been grow slowly to onward on the path of progress. Who realized that 1 day this brand will become an extremely famous and treasured by billion of individuals. Lego name is originated from Danish combined expression 'Leg Godt' which was first utilization in 1934. By 1940 they were make a powerful and affordable 150 type of product. Today they have looking to create a modern playthings for children that people are prefer it. Today the brand sold these product in the worldwide. Its the whole lifetime is described in three stages first were began to make wooden playthings than improvement were manufactured in technical characteristics and after than resources were used for working the LEGO System of play.
'External marketing environment can be split into four main groupings, known by the acronym STEP: sociocultural, scientific, financial and competitive, and politics and legal environments'. (Frances Brassington and Stephen Pettitt p. 46, 2003).
Today if the anyone want to buy gift anywhere in the world they first keep in mind the Lego product because they making something based on the children mind that's why LEGO company describe in their website these are continuously finding a fresh ideas for children toys and games which is helping to stablish a good reputation in the buyer mind. Its affirmation is 'ingenuity infinite. . . just imagine'. (www. lego. com)the company business most significant part is making a play material product they provide four main product range to consumer - play material for 0-5, 4-9, 7-16+ years of age child or boys, family attraction, lifestyle products and media. Along with it they also making a product for educational users for 7-16+ technology.
Technology isn't just suggest, what technology involved in it. What new design they provide to consumer, what HI-TECH technology they found in the manufacturing on their product. For 0-5 12 months old children they create a 37 different type of product which has increased electric motor skills and sense. Lego continually be enthusiastic about the technology which show in their theme park. The company give a facilities for consumer not internet only also with considerable information about their product runs. The business all current economic climate are depend on their product regardless of the poor final result they preserved their domination. They continuously
moving ahead and achieve their goals. After the crisis they authorized a agreement with other toys and games companies which is help to giving a more better service and reaction to customer.
Strength- the product is associated with its history along with this also fastened with today era. Its USP is ''creativity unlimited. . . just imagine'', ''system of play'' that all things are strength of the famous brand. Something is only because of its subgroups made large consumer bottom part with a successful line extension.
Weakness- Within the Lego lines product problem with the coordination with development along with demand as well. And company big weakness when product is come back because of the insufficient efficiency.
Opportunities- Lego have significantly more opportunity on the media and other business market they don't really need only put give attention to the play material market which is very big opponents in entertainment market. Becoming involved in a number of cooperative agreements to supply license product.
Threats- LEGO has risk to other rivals who are also making a higher scientific product such as Sony and apple and also economy condition of the company to retail investor or vendors.
There are many influences which is help decision making when consumer buying a product. The current styles and fashion or status of this brand in the society also effect the consumer decision making. Sometimes some family choose those kind of product for their children which is very famous in the culture or may be if child other friends all of keep these things the same kind of toys and games. The The Lego company still stand with same rhythm or preference in the growing competition market and become ready to reply the new fashion and movements. Lego provides to consumer four main aim for age range product which is ideal for 0 years child to 18+ young boys. To offering this respond to individuals are more attached with the LEGO new styles mostly of the kid. Today if anyone want to buy a present everyone firstly think about Lego. They also make a product for educational learning material. Many of the product were created based on the children think of view. Technology is also results the many of the buyer decision making. What technology they applied in their particular product and what new technology they use in the computer games. Lots of the products are handling the child parents problems. For attract the new generation or family members or children they make a child playground where they asked to children using the all kind of technological play toys and games or like a variety of role playing experience such as chance to learn electronic car, drinking water play area, plor caves and Egyptian tombs also building are design with children mind. This sort of activities also help to consumer decision making.
In 1998 company have a dis-pointing result scheduled changes popular. Now The business must be give attention to increasing the efficiency of the business. All over the world company in deficit started to go away from Europe, Asia, Russia. The stock was reduced by DKK 150-200 million in dip sales. Most of Lego lines started to blockage of the improvement or problems in co-ordination. And from then on they more improvement in the client focus activities and their development. At the previous they understand and realize that they have to more changes in consumer demand. The business are changes inwardly not to show in the market. And opening a fresh brand stores near the consumer where they come to easily. And making a fresh design in women toys.
Due to high technology development or economic changes LEGO company take great result to this length. By changing of expectation of children company think get caught in what they need from the playthings. ''They making a fresh strategies and ventured in new areas, changing culture, Innovation & Leverage Technology, making a fresh products. ''
( http://faculty. insead. edu/adner/PREVIOUS/Midterm%20projects%20May/ANAlysis%20lego. pdf)
After the huge lose to consumer they make a innovation in their Lego brand which is more efficiently, help in increasing development capacity. The Lego offering a different type of variety in their product with a new high technology. The Lego product is world famous brand in line with the autumn study 2003 :
'Every 2-3 years, the self-employed market research institute Young & Rubicam conducts a comprehensive survey among households with children to identify the 10 most powerful brands and Lego got a 6th place. '
(Autumn review 2003, annual record of LEGO 2003)
This research actually predicated on the several countries such as Britain, European countries, France, United talk about etc. Today Lego turn into a so famous plus they making a important place in the new era children. Daily Lego hold a massive market setting in the toys and games market. Combined with the changes in high technology in their products or video gaming they are sign up for a fresh Lucas film group Ltd to make a older range legend warfare product with the launched a 25 set of star war toys and games this is also a make a good position in the entertainment toy market. Lego advertising product is thinking about innovation and this fact is exhibiting in their new press movie which is show that they are fast forward with the new generation and stable a trusted brand position in this competitive toys market.
License Product- after the slipping down their market they are signed a legal agreements which is also a technique among with other company to retained credibility. In addition they effect on the sales.
' Registered products are play themes based on films or books that the LEGO Group has attained the privileges. LEGO designers recreate the world and characters in LEGO bricks so that play can keep on the ground at home'. (www. Lego. com) these are using a license product under the legend conflict and harry potter range in Lego bricks.
The Lego adopting a fresh ideas along with expand the concept plus more focusing on the unexplored area where they have to too much attention on these specific area. In other sense it was attractive prime (quite simply invention is very needed for the LEGO company). Whatever situation in the foreseeable future, Lego always focusing on children and their requirements or continuous to keep command word on the gadgets market and for the children they made a fresh global organization where children play with new creativeness ideas, prompted the imagination and it'll also help learn some more. The greatest thing is here is likely to point out the Lego changing their strategies accordance to the buyer thinks which assumes the regained their supremacy and be ready the business strategies for the fortunes dangers. A The interview with all the Lego company marketing Innovation Director Flemming Ostergaard on lastminute. com in line with the this research talk there are a few points are highlited in this particular discussion
Using ethnography to understand kids- ''Ethnography is based on specific observational studies of how children play and is ground breaking help a toy manufacturer. It remains central to LEGO's quest of how to capture the child's thoughts. There's a risk that traditional gadgets like LEGO will eventually lose sales in the face of competition from the sights of the internet and gaming console games. Ethnography might provide some answers to this dilemma, especially for the 7-9 age range. The technology took place a big role in the toy market and also being truly a major basic toy company and thats a challnge. They use cretivite people in their development of the merchandise to understand better and creative method of devloping the new stuff. They think today kids desire a privateness and sometimes parents aren't like this they regulary technology in their product. (the lastminute, com )