Lego Case Study

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Introduction Our group’s research is on The Lego Group. Founded in 1932 by Ole Kirk Christiansen, Lego is now an iconic brand internationally recognised for its production of Lego brand toys.1 1. Company Description of LEGO 1.1 Nature of LEGO business The company’s principal activity is making and retailing toys. It is a major competitor in the toy industry. Lego produces differently coloured bricks that can interlock with each other to create structures. The bricks are sold in sets consisting the bricks required to create a miniature model replicating a larger structure from either real life or even scenes in popular movies. Lego also makes little lego figures and sell them both individually and as part of sets so as to add a degree of lifelikeness to the scene. In addition to producing toys, Lego opened a few amusement parks known as “Legoland” in some countries around the world, though it eventually sold the parks to Merlin Entertainments so they could focus on the core business of manufacturing toys.1 Since 1997, Lego has also expanded into the video game market, releasing games such as “Lego Racers” and “Lego Batman”.2 Even more recently, Lego has become involved in the production of feature-length films based on the toy.2 1.2 History and Success of LEGO Lego was on the verge of bankruptcy in 2003, but recovered from its near-insolvency by proper restructuring of the company.3 Its sales have tripled since 2007 and in the first half of 2013 the Danish group’s $1.9bn of revenue just lagged behind the $2.2bn of market leader Mattel.4 In 2013, Lego also overtook Hasbro Inc to become the world’s second biggest toy company in the world.5 The product release of the “Friends” line in 2012 was a phenomenal success and Lego’s net prof... ... middle of paper ... ... to having higher sales figures. Thus, places with high foot traffic(people) would be desirable e.g Bedok Mall, is in a very good position as it is connected through an underpass to Bedok MRT and it is in a very accessible location. 3.4.6 Demographic Segmentation Legos’ target market includes both genders, male and female. Lego caters to different age groups, from preschool to teenagers, with the primary focus being the 5 to 15 year-old age range.13 3.4.7 Psychological Segmentation Lego targets people who believe in these six values; Imagination, Creativity, Fun, Learning, Caring, Quality.31 3.4.8 Behavioral Segmentation Lego aims to increase brand loyalty with it’s VIP program which provides benefits i.e having access to special sets, events and promotions.32; and Lego Club also provides exclusive information on upcoming sets; comics; quizzes; puzzles for free.33

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