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Lego Market Research
Introduction
Introduction
In this presentation I will be discussing the different market research the big toy company, Lego undergos within the business, in order to manufactor the right products that the customers potentially want.
First of all Who is Lego?
Who Is Lego?
Lego manufacture plastic construction toys and are a privately help company in Billund, Denmark. The group began producing these toy bricks in 1949 and have become a huge hit with children in the market. In the movement, the company have been supporting movies, games, competitions as well as six different amusement parks under the brand. As of July 2015, 600 billion Lego parts have been manufactured and the company named ” the world’s most powerful brand”.
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What is Market Research?
- Market research is the process of handling valuable information to help you understand the market for the product or service you provide.
Definition of market research
Primary data
primary data
Lego spent many months with the research teams carrying out primary research investigation that consisted of observation and interviews. Throughout the use of observation the team observed a group of children playing with toys they produced. This then allowed them to focus on specific areas that had not been researched before. Furthermore, due to the children being the target audience, the company follows their opinions to try and create the ultimate product.
What is Primary Data
What is Primary Data
- Primary data is gathering information directly from your own source. while primary research can address questions about the past and current activity, however the goal is to learn about what the market is interested in. Then by carrying this out, lego would be able to attract a larger audience and reach its goals of success.
Benefits
- The information is gathered first hand meaning it is trustworthy.
- You gain more control over the research because it is your own.
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Disadvantages
- May be expensive to obtain
- limited to the time, place and number or participants.
Moreover
In 2004, the trends with computer games meat that consumers wanted instant gratification, what the observation research actually discovered was that kids responded To scoring, ranking and levels off play, i.e mystery.
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After the success, of learning about the boys, the next step for the researcher’s team was observing how the girls played with the toys.
Throughout their revelation the team discovered that the traditional yellow head lego characters was not appealing towards the girls.
The girls were looking for something that was more attracting. The teams set up focus groups and interviews with parents that identified that there were differences in play between the boys and girls. With this new piece of information. The company took it forward and introduced new and improved products with friendlier stories. ‘figure girls’ that could identify with colours that appealed, this was major hit in 2012.
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Secondary data
secondary data
Lego gravitated towards the primary research more. However the majority of their product ideas came from other sources such as a website ran by the company which allows the public to submit any ideas they would like so that Lego can take on board the ideas to increase the popularity of the brand and add something unique that no other toy company has. The advantages from this allows the company to stand out against average toy companies.
What is Secondary Data?
Secondary data is researched data that has previously been gathered by some one else. Secondary data is used to increase the sampling size of research studies and is also chosen for the efficiency and speed that comes with using an already existing resource.
What is Secoundary Data
Benefits
- It is not time consuming.
- You can take data from the past.
- May be accurate e.g samples
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Disadvantages
- it may not be trustworthy because you might not know where it came from.
- Data may be over complicated
- May not have a full understanding of what it is showing.
Quantitative and Qualitative
Qualitative and Quantitative Research
Qualitative
Qualitative
After conducting primary and secondary research, the next step is to conduct qualitative research followed by quantitative survey. The difference between the two is that qualitative research is primarily exploratory research. It is used to gain an understanding and underlying reasons, opinions and motivations. Qualitative data collection methods vary using unstructured or semi-structured techniques. Some common methods include focus groups, interviews and observations.
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Most toy companies conduct market research by forming focus groups. however, Lego behaves differently by sending people out into the world to study children in their natural habit. In 2005 and 2006 Lego's mission was to research on what girls wanted within the brand. The design and strategy teams then worked in teams then working in small groups to observe and interview girls and families over a time frame conducting the research in the united states, Germany and Korea. Lego found that girls like "harmony," or "a pleasing, everything-in-its-right-place sense of order"; warm, welcoming colors; and precise detailing on toys
Quantitative Research
Quantitative
quantitative Research is used to quantify the problem by way of generating numerical data that can become usable statistics. it can also be used to quantify attitudes, opinions, behaviors and other defined variables. Quantitative methods include forms of surveys such as online surveys, paper surveys and mobile surveys.
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he LEGO® ‘Play Well Report’ surveyed nearly 13,000 parents and children in nine countries to understand the state of play today and encourage discussion around its ongoing importance. The report reveals a strong link between the hours spent playing together and the happiness of families, with nine out of 10 families (88%) who play for five hours or more a week claiming to be happy, while, of those who play for less than five hours, only seven out of 10 (75%) say they are happy. Playtime is being squeezed however, with nearly a third (30%) of families spending less than five hours playing together every week. One in 10 (10%) play for less than two hours. Even when families do get together to play, six in 10 (61%) parents admit they tend to get distracted by life’s other demands, such as work, house chores and their ever-present smartphones. Alarmingly, one in five children (17%) say they are too busy for play, with four out of five (81%) wishing their parents would play with them more. Conducting this Research will then help the company understand their target audience more. Furthermore, it will allow the company to know how their market behaves towards the brand brand in order to gain consumers.
Limitations and Constraints
Limitations and Constraints
A company such as Lego have many regulations and constraints that they must follow in order to run. Things such as laws may restrict a company from fulfilling their objectives. for example There are certain types of product that fulfill the definition of toys but are excluded from the scope of the regulations. Annex 1 of the Toy Safety Directive 2009/48/EC sets out a list of products that do not fulfill the definition of a toy but could be confused with a toy.
What do they mean?
Limitations and Constraints are factors that work as a resource that is currently at its full capacity. limitations and constraints restrict an organisation from achieving its potential. These can be legal constraints including laws produced by the government and voluntary constraints..
Conclusion
In conclusion, this presentation elaborates on how the company markets their brand in order to gain as many consumers and how their research creates an impact in the organisation.