LEGO Case Study and Analysis MKT 5301-Advanced Marketing

This document is an extensive academic paper titled "LEGO Case Study and Analysis" for the course MKT 5301-Advanced Marketing. It analyzes the business and marketing strategies of the LEGO Company, focusing on its constant reinvention, market position, ethical implications, and proposals for overcoming the major threat of reliance on plastic. I. Market Analysis and Reinvention Reinvention Strategy LEGO constantly reinvents itself through product innovation and expansion. This involves a design-thinking approach to produce imaginative, colorful products. Key to their success was realizing their growth had slowed, prompting them to establish a deeper understanding of their consumers' needs, behavior, and desires to create an emotional connection. LEGO established a creative team, Future Lab, for market research before products are designed. Role of Market Research Market research was critical for market segmentation, helping the company develop products that resonated with different demographics, such as the LEGO Friends line for girls' role-play activities. Research also helped them understand and correct production issues (like creating overly complex toys) and facilitated geographical expansion. Competitive Advantage (SWOT Analysis) Strengths: Iconic and globally recognized brand , diverse product portfolio, collaboration with educational institutions, and a versatile brick system that appeals across ages and genders. Weaknesses: High prices limiting affordability , heavy dependence on plastic , and increasing digital competition. Threats: Stiff competition and new entrants, changing consumer preferences toward technology, and the liability of plastic materials. II. Ethical and Future Strategy Ethical Implications The main ethical issue is environmental sustainability due to products being made of non-biodegradable and bulky plastic materials. LEGO aligns with good practice by promoting learning and creativity over materialism and practicing inclusivity and diversity through varying products. Overcoming the Plastic Threat (Next Step & Recommendation) The reliance on plastic is identified as an organizational problem that could cause a market drop. Integrate Eco-Friendly Productions: LEGO should expand its research to identify alternatives like wood. Producing wooden toys will adapt to future market trends, save the company from regulatory repercussions, and attract environmentally conscious consumers.