A marketing project in Marketing Management (Fall 2018)
- Danish toy production company based in Billund
- Best known for the manufacture of Lego-brand toys.
- Sharp decrease in revenue and massive lay-off in 2017 due to the game industry's domination of the market.
- Despite the decline, the financial state of the company is still robust, which implies the need of improvement in its marketing strategy.
- An adult who likes doing or buying things that are intended for children
- Kidults account for 20% of the whole Lego Korea's customers.
- Their significance is marked by their buying power.
- Gain thoughtful insight about Lego Korea's marketing efforts by the analysis on their response gained by survey questions.
- Survery targeted to 'kidults' active in 'Naver Cafe'.
- About 90 respondents.
- Contents
- Demographic Information
- Sex, age, location, income, purchase experience, purpose of the purchase, and etc.
- Brand Perception
- Customers' perception on the position of 10 companies in the market had been inquired.
- Three types of companies
- Toy Material Manufacturer: Lego, Sonogong, Young Toys, and Oxford.
- Teaching Material Manfacturer: Froebel, Montessori, and Edu Hansol
- Game Developer & Distributor: Mojang, PUBG, Riot Games
- Demographic Information
- Customer Satisfaction Level on Marketing Efforts
- Marketing satisfaction is comprised of 4 sub-dimentions of product, price, place, and promotion(4Ps)
- Validify the current positioning of lego with perceptual map.
- If the positioning needs adjustment, apply repositioning.
- If the positioning has no problem, further study 4Ps
- Elicit a marketing recommendation
- The cohort of our interest is kidults from the outset.
- Three-dimenstional perceptual map had been plotted using Python library (pandas, matplotlib, mpl_toolkits and etc)
- Three feature considered:
- Price: high vs. low
- Purpose: educational vs. entertaining
- Popularity: high vs. low
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Popularity vs. Purpose
- Toy and game companies are clearly distinguished from teaching material companies
- Teaching material companies are well-known in the market.
- Lego has the hig heset brand perception among all other firms.
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Price vs. Purpose
- The price of Lego's product is perceived to be very high.
- Lego is obviously categorized as a toy company.
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Popularity vs. Purpose
- Lego score the highest both in the popularity and price.
- Lego is perceived as a well-known known company that manufactures expensive toys.
- Lego has undoubtedly a strong brand power
- Repositioning or extending to a teaching material manufacturer will result in severe competition.
- Price may need some adjustment.
- Short life cycle limits the supply, leading to the price rise.
- Highly set product price in the second-hand market would affect the release price.
- Nearly 13 million users has liked Lego's Facebook page.
- The 'likes' of each advertisement posting is comparatively very low.
- The advertisements are not regarded relevant to the viewers.
- Licensing is the major factor for the pricing.
- Reducing the liscensed set would help to lower the price.
- Lego needs to roll out more sales promotions which are comparatively weak than its competitors such as Sonogong and Oxford.