Lego Case Study

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Lego case study

1 Evaluate and comment on Lego’s market orientation using the market orientation assessment

form (see Box 1.1) to support your analysis.

Lego can score in 80–100. This indicates a high level of market orientation. Scores below 100 can

still, however, be improved! Because Lego’s product’s are special and unique which is attractive

and valuable to customer, therefore, Lego has competitor in toy industry but in digital game, Lego

may be the first company who’s digital game is based on their toy’s and by buying specific carton

characters Lego are more easily to enhance their target market and bring in more new

customers.

2 Which of the three approaches to marketing presented in this chapter do you think best

describes Lego’s approach? Why?

Product push is firms or companies try to encourage customer to buy their existing products or

services, and the key thing is to make customers want what we are good at.

Customer-led is similar to price war, chase customer by using low cost. It is a short-term

marketing method.

Resources based marketing are firms or companies consider on both side company ability and

market demand, setting up a long-term view take all the things into consideration eg; supply

chain, supplier, advertisement, customer satisfaction…

Resources-based approach is the most suitable approaches Lego presented. According to the

report said, Lego corporate with three different digital corporates—Sony Microsoft and Nintendo

to establish their special edition video games. By using the definition to judge, first Lego is a

traditional toymaker and they have their characteristic toys comparing with other toymakers.

However, Lego wants new dimension with digital vision that is an innovation products and not

exist before. Therefore, Lego’s toy has specific target customer and they have planed more than 3

years in entering the digital game area, Lego is the market leader comparing with the other

traditional toymakers, as the article mentioned, Lego is still in balance between customer

demands and company abilitys.


3 What marketing principles are in evidence in this case?

1. Focus on customer, Lego clearly knows who are their customers, and what they want, their

target market is child who has already familiar with Lego toys characterize. What they

produced are highly related to their toys, use a popular and more attractive way to attract

target market.

2. Customers do not buy products. Customer focus more on experience than technical feature,

due to this reason Lego provide digital vision to their target market in order to enhance the

attraction of their original customer and bring more new customers.

3. Markets are heterogeneous, different customer have different demand, for Lego, as a

traditional toymaker try to entering the digital game area, this may due to the market need,

Lego’s customer wants better experience in both toys and games, Lego is also unique in this

new area. Because market is heterogeneous, Lego can just focus on enhance the attraction

to their basic customer and try to attract more new players.

4. Markets are heterogeneous, according to market segmentation, market has been divided

more finely, different people want different services, so in order to keep the market share

or be the market leader, Lego have to be more powerful which led customer related on

their products or services.

5. Markets and customers are constantly changing. Markets are dynamic and virtually all
products have a limited life that expires when a new or better way of satisfying the

underlying want or need is found; in other words, Lego have to innovate new products or

services to attract customer and follow marketing trend.

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