Posted at 08.10.2018
Keywords: lego swot, swot lego, lego exterior environment
Introduction: A short intro about the LEGO companies record, before starting this research study. It was began by a straightforward carpenter named Ole Kirk Christiansen and with a few employees in 1932. From today more than 60 years back they began making wooden gadgets in his workshop in Billund, Denmark. The name LEGO first found in 1934 originated from Danish words 'knee Godt' translation this term is ' play well'.
But as when clear plastic came into wide-spread use, then Ole Kirk commences to realize the huge potential of clear plastic as a new product existing real wood toys. Along with the first toy produced was a truck that could easily isolate and again re set up. It was the end of 1940s.
LEGO's external marketing: To understand the exterior marketing of any business, it could be done by STEP analysis, "for LEGO external marketing environment can be divided into for main groupings, known as acronym STEP: Sociocultural, Technological, Economic/competitive, and Political. So it's essential to now each part of STEP examination for LEGO. So I explain every individual follows as:
(Frances Brassington and Stephen pettitt P. 46, 2003)
Sociocultural: in recent years when customer needs to get toy or almost everything they largely per fur the merchandise with LEGO brand, this is because of companies motive that they make product based on the needs of customer's either it's time difference or gender. Because of this LEGO company creates good assertion within website, that they are progressively finding progressive ideas for new toy product. LEGO company group its business organisation into four main categories: Play materials in this children's years upto 0- 16+, family appeal, lifestyle products and marketing.
Technological: According to LEGO it is world top most toy company with top grand name, so when it comes to the technology they have got good technology but most important thing is that they have brilliant people working for them how make good use of technology. The technological environment is continually changing. Even as we can see a few years ago toy were made by plastic but today a remarkable changes made in the field of toy, a straightforward example is robot how works for you.
Economic/competitive: Today just in the market of toys there are large numbers of companies is there. So for LEGO Company also need to face competition from other produce on the market, but as LEGO has set up a good reputation in the consumer mind, because of fair insurance policy of LEGO company.
SWOT evaluation for LEGO: SWOT research is to look for the position of the business enterprise, in for four parts:
Strength: Main durability for LEGO is that they have reputation for quality in fresh material for making toys and also their functions, as LEGO brand is in the market for long duration, they well prepared a good understanding of the market and made good associates worldwide.
Weakness: Due to worldwide, so higher means of travelling cost and delay in supply. As time company do not pay attention to purchasers initiate wish.
Opportunity: Progress technological give possibility to LEGO company. Company makes product based on the needs of consumer which make good romantic relationship between both.
Threats: Main hazard is that number of competitors on the market, with huge selection of product. And some of business environment also which can accrued at any time, like credit crunch.
While consumer buying any product from the market there are extensive guidance that assist in decision making. Today fashion is changing extremely fast which also affects the buyer decision making. Following are some ways of decision making.
Social and educational fascination product- As people always compare with other, so while purchasing gadgets because of their children's they like to buy the toys which is famous in the culture and have a trend in those days and children also choose the same product because their friend may have same one. So LEGO is often follow the same tempo which is certainly going on and makes product regarding to needs of consumer with new fashion and trend. LEGO produce product affording to the key target range which is 0 years child to 18years+ son. They also make product which assisting in education for children's.
Technological fascination product- today world is changing extremely fast with progress technology. So that it also influences the habit of consumer decision making. What new technology they use in their particular product and what new can they do in the domains of game titles. LEGO use advance technology in their process of making product and with advance computer games. LEGO recognizes that if it is reverse its changing financial fortunes, its persisted commitment to technology is vital. They largely targeted two-to-five calendar year olds how favorite character types like Winnie the pooh, Tigger, Piglet which they show in Disney film characters.
Belief and attitudes- Company has simple phenomena that they never change their attitude towards their product making. LEGO always encourage children's creativity, so they use the theme for the kids. " for just about any company frame of mind play an important role for consumer while collecting the info or decision making and Williams 1981in summarising the books, describes behaviour have three different comportments cognitive, affective, co-native" (Williams 1981, P. no. 114, Principal of marketing 3 Rd ).
Gender or get older appeal product- gender or get older also plays an important role while consumer acquisitions a fresh product. LEGO organisation make different product for boys and girls, because wants of each customer is basically different, so they made matching to needs. This gender difference begins from the first calendar year of children's. And the same in this difference, as child increase their purchasing behavior and style changes.
Poor results- With the end of 1998 LEGO organisation has disappointed with the results they acquired, one of these mature management team recognized that it must give attention to increasing the efficiency of the business enterprise. For the reason that time organisation saved a before-tax loss of DKK 282 million, its most severe ever set of figures. ( research study )
Due to drastic change throughout the market and in neuro-scientific technology LEGO have great effect on this brand, ever quickly changing want of Consumer Company also think that what they need in the gadgets and video games. "Targeting young adult is anything but child's toy. Today's toys involve highly centered research and the utilization of advanced technology to entice and to charm to teenagers. Yesterday's favourite brand such as LEGO and Biro are actually fighting for top-of-the-toy-box status against digital upstarts. "(by Ron Irwin, http://www. brandchannel. com/features_effect. asp?pf_id=113 )
But in some research it is realize that LEGO have to are affected a great deal, not in the brand's but also a damage characters as it is shown in the event study given to students. But as enough time passes LEGO stands and get this brand position name and arranged a good picture in your brain of consumer and drive these to buy their product which is most beneficial from snooze. Today on the market of toys LEGO is becoming famous and makes an important put in place new technology children's.
One more important definition for LEGO from the same case study "our vision is for folks around the globe to experience positive, happy organizations whenever they see a LEGO logo, see a LEGO aspect or carry it in their hands. Creativity, exuberance, spontaneity, self-expression, quality-these are a few of the words we desire to link with the LEGO name, together with beliefs like development, matter for others and advancement".
Www. lego. com
Marketing strategies- LEGO organisation always adopted new and strategies to make their products which are in pattern and in the market. LEGO Company has made an trend that they use to make server all the time available field, in order that they get updated every time.