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A marketing project in Marketing Management (Fall 2018)

1. Introduction

About Lego

  • 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.

Research Objective

  • Gain thoughtful insight about Lego Korea's marketing efforts by the analysis on their response gained by survey questions.

2. The Instrument and the Target of the Measurement

Online Marketing Survey on Kidults

  • 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
  • Customer Satisfaction Level on Marketing Efforts
    • Marketing satisfaction is comprised of 4 sub-dimentions of product, price, place, and promotion(4Ps)

The Logical Process of the Project

  • 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

3. STP Analysis

Segmentation, Targeting, and Positioning

  • 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

Positioning by Features

  • 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.
  • Price vs. Purpose

    • The price of Lego's product is perceived to be very high.
    • Lego is obviously categorized as a toy company.
  • 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.

4. 4P Analysis





Overview and Overall

5. Recommendations

Short Life Cycle of Products

  • 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.

More Effective and Efficient Advertisement

  • 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.

Reduction in the Licensed Sets

  • Licensing is the major factor for the pricing.
  • Reducing the liscensed set would help to lower the price.

More Sales

  • Lego needs to roll out more sales promotions which are comparatively weak than its competitors such as Sonogong and Oxford.


A project in Marketing Management (Fall 2018)






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