Evaluation of LEGO Corporation Case

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Columbia Southern University *

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Apr 3, 2024

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TAKING YOU INTO AN IMAGINARY LEGO WORLD 1 Taking You Into An Imaginary LEGO World Becky Miller Columbia Southern University MKT- 5301 Dr. David Castle September 20, 2022
TAKING YOU INTO AN IMAGINARY LEGO WORLD 2 Taking You Into An Imaginary LEGO World The corporation of Lego has seen many ups and downs in the span of 90 years. Established back in 1932 in Denmark(Philip Kotler, Kevin Lane Keller, Alexander Chernev, 2021, p. 116), they have made an evolutionary toy that has brought joy to many. Lego has been a staple in many family lives. Being a child of the late 80’s, Lego’s where everywhere in our household. My brother was a mega fan of Lego’s. One to sit down for hours and not get up until the custom 18-wheeler, submarine, or motorcycle was finished according to the instruction pamphlet. Sitting next to him and just remembering, those look so boring. The neutral colors divided in a pile of blue, gray, black, and white blocks, just so sad. There was just no fun in this at all. Not until Christmas came around and Lego took it a step above all other toys. There under the tree was a brand new newly released bucket of pastel blocks. It was bright, and so cheerful. A bucket filled with pink, purple, green, and yellow blocks, every girls dream color palette. After the initial spill of blocks on the floor, it was soon discovered it came with horses, fence pieces, palm tree’s, windows and doors. The imagination wheels were at an all-time high. That day, the bedroom turned into horse stables. The Lego figurines provided private lessons to all the truck driver and construction worker Lego men. This truly established the meaning of Lego, “play well.” (Philip Kotler, Kevin Lane Keller, Alexander Chernev, 2021, p. 116). This is just one fond memory of exactly how Lego constantly reinvents its business. Lego decided to take the opportunity to put a small twist to the same block pieces and make it marketable to a different crowd. Marketing is the key factor for any business. The Lego business wants to make something that seems desirable. A team has to take the time to study what is necessary to help for the success for the business. Marketing research can include many factors of gathering
TAKING YOU INTO AN IMAGINARY LEGO WORLD 3 information. With the technology of today, it can be a simple survey on your personal phone. Marketing for Lego in the 90’s and 2000’s was completely different. Research groups and focus groups were key. Bringing in a group of people to let them play, see, touch, feel, imagine the possibilities of what LEGO could be. After extensive research, it was learned that the Lego market fell short to the young female population. The young girls are limited to the building aspects of Lego. This is when Lego launched LEGO Friends line. Just like the initial excitement in the 90’s of a pastel horse stable, today’s youth can now make shopping malls, juice bars, and even more imaginative role playing. Lego is truly a kind of its own. Lego has managed to specialize on one type of product. Just speaking the word Lego, everyone automatically knows that you are referring to the building blocks. While some of Lego competitors, do not focus on one main toy. Hasbro for instance is a company that produces a variety of merchandise. Hasbro produces things such as toys, games, and entertainment. Can you name a Hasbro toy or game off hand without having to look it up? Products like Monopoly, Nerf Guns, My Little Pony are all manufactured by Hasbro. With Lego being just one product, is how they differentiate from the rest of the toy industry. Making Legoa simple and sustainable product. Having numerous locations and still growing. The United States will have production returning, with a new $1 billion facility in Chesterfield County, Va., near Richmond (Kavanaugh, 2022). This will just continue to grow Lego and make it even more of a competitor for other toy factories. “We strive to create a responsible place of work for our employees, one in which they can thrive and be their best. We focus on making our workplaces inclusive, safe and motivating, where only the highest standards of ethical business behaviour are maintained.”(LEGO, 2022). This is just part of Lego’s motto, making them seem like the ideal place to work. The ability to
TAKING YOU INTO AN IMAGINARY LEGO WORLD 4 know that you have helped shape the future and inspire children of all ages. Ethically on paper LEGO Group looks like an ideal job. They focus on safety, motivation and have high standards for the work environment. If one were to look at glassdoor job reviews, it does have a lot of positive reviews to reflect just that. On the other hand, Lego does have some downfalls that do not agree with their own motto. Again, as it may be seen by some on glassdoor, some former employees have had agreed reporting of poor management and no progression of job position. Lego has always been about expansion in the community and world, but it is hard to personally grow within the company as an employee. This may be a strain on the corporation after some time. If that many employees feel like there is no growth, and no management there for support, it will not be worth working there. Lego is trying its best to evolve in this 21st century. Back in 2021, the California Gov. Gavin Newsom signed a new law, that by 2024 all major retail stores must provide gender neutral childcare items and toys (Cheng, 2021). Lego was already doing a global survey amongst parents and children about the feelings of labeling of products. At the wishes of young customers, Lego had announced that they were no longer going to label the boxes for any specific gender. The boxes will no longer include “for boys” and “for girls”. Lego has even taken down the search categories for boys and for girls on their webpage. This now leads to allowing anyone to choose freely and how to express themselves with their new toy choice. Lego is seen in almost every store. The growth has been substantial in the economy since first being established back in 1932. Just recently with the pandemic, Lego has seen massive gains. Alone from the previous year there was a rise of 27 percent to $8.06 billion in 2021 (Kavanaugh, 2022). Having this kind of massive growth in sales has led Lego with the intentions of opening a 1.7 million-square-foot factory in Chesterfield County, Virginia. A $1 billion
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