Question

If the number of Lego bricks were averaged out among the world’s population, each person would own approximately 86 bricks. These simple blocks have propelled the family-owned LEGO Group to the world’s largest global toymaker. The company manufactures approximately 86,667 Legos per minute. Traditionally geared more toward young boys, Lego used market research to expand its target market toward girls with new product lines. It also uses crowdsourcing to elicit new ideas for Lego sets.
The LEGO Group is a Denmark-based company founded in 1932 by carpenter Ole Kirk Kristiansen. In 1947 the firm decided to produce plastic toys after purchasing an injection-molding machine. Among these toys were plastic bricks aimed toward young children. Kristiansen’s son Godtfred, who would head the company after his father’s death, began investigating ways to design these plastic bricks. He conceived of an interlocking system design that would allow children to connect the bricks together easily. In 1958 he patented the stud-and-tube coupling system, a system that would popular-ize Lego toys on a global dimension. Although Godfred Kristiansen considered Lego products to be for both genders, this was not the case at the begin-ning of the 21st century. Legos were considered to be more of a boy’s toy. However,
this
began to change a few years ago when Lego made a strategic deci-sion to develop prod-uct lines for girls. This decision was not taken lightly. Lego spent four years interviewing this demographic and their families to understand the preferences and desires of young girls. Researchers observed girls at play to note the differences between
girls and boys. One of the biggest observations that Lego dis-covered is that young girls tend to like to role-play, making Lego mini-figures an important part of the Lego experience. They also discovered that girls tend to pay more attention to color. In all, 3,500 girls were interviewed or observed. This type of market research has paid off for Lego in
the development of a highly successful product line. Based on their observations, Lego developed Lego Friends sets. These sets consist of five female mini-figures living in the fictional city of Heartlake City. These sets were developed in a variety of colors that young girls seem to prefer, including pink, turquoise, and lavender. The colors were not without controversy as some consumers were concerned that Lego Friends reinforced gender stereotypes. However, they became a hit among young girls. Lego Friends sold twice as well as expected and has helped The LEGO Group triple its revenue since 2007.
One reason for Lego’s recent success might be due to its
tendency to step outside of the box. A decade ago, the future of Lego as an independent firm was threatened, forcing the CEO to revamp operations and re-position the firm. Lego’s emphasis on adults and young girls—as well as its strong partnerships with companies like Mar-vel—have come far in rejuvenating the firm. Another way that Lego is able to solicit creative ideas is by getting fans actively involved. Lego has a crowd-sourcing platform through a Japanese partner called Lego Ideas. The platform solicits consumer-generated ideas for new play sets. Con-sumers can submit their ideas and vote
for the sets they think should be developed into new prod-ucts. Lego reviews those ideas that receive 10,000 or more votes for possible development. If an idea is chosen for devel-opment, the creator of the idea receives one percent of the product’s total net sales. This is a benefit for Lego because it helps generate new product ideas that it might not have con-sidered on its own. Lego also ensures that its employees are creative contributors. Job applicants interested in design jobs with Lego are invited to sketch and build Lego sets that will be reviewed by the firm to see if the applicant is a good fit. Lego continues to use marketing research to determine
new opportunities for product lines. The firm has even used MRI scans of children at play to examine which parts of the
brain light up during interactions with specific toys. This use of new and advanced tools for marketing research is inte-gral for Lego to maintain its top spot as the world’s largest toymaker.66
Questions for Discussion
1. Describe the marketing research process Lego under-took to develop Lego Friends. Why do you think this was important to the product’s success?
2. How does Lego get consumers involved in marketing research?
3. Why is it important for Lego to use new tools to continu-ally gather market research from its target markets?

Answer 1

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Describe the marketing research process Lego undertook to develop Lego Friends. Why do you think this was important to the product's success?

Lego has well pursued the method of marketing analysis. They found that Lego toys were seen as more of a toy for boys, from colors to toys that could be made from bricks. The issue was established. I tried to target girls and call parents more for young girls' toys. Lego has been talking to 3,500 young girls and their families for four years. They find that the group associates with tiny, more pastel and lighter colored images. The study was successful with Lego Friends creation. This new segment has sold two times as well as expected in the Lego product range and since 2007, has helped the enterprise to triple its revenue.

How does Lego get consumers involved in marketing research?

Lego built a forum where the innovation and expertise of its clients can be directly appreciated. Lego Ideas has been launched as an internal project to foster creativity in a stagnant business and help the consumer community of Lego and create new items. The Lego Ideas website has given fans the possibility to produce designs and vote on them that Lego uses as official products. Lego Ideas invites users to post ideas on Lego potentials by creating pages, along with positive photos, which outline the concept.This page will then be placed on the app site for browsing and voting. After 10,000 views are created within one year, it is eligible for Lego 's review. A good customer who starts on the market has the right to 1% of the product sales. For both the business and its customers, Lego Ideas offers interest.

Why is it important for Lego to use new tools to continu-ally gather market research from its target markets?

Lego is the top toy maker in the world. Through his marketing research he will constantly step beyond the box to maintain this position. Lego has to perform worldwide market analysis if it wants to compete with its rivals. The easiest way to provide the consumers with goods is to know what they want, hate it, and don't wait for a offer. Lego continues to use innovative ways of knowing its target audience. From the Lego Ideas forum to MRI scans of children who play to learn just what makes young children interested in their toys. Such state-of-the-art devices are used for developing and manufacturing new items for those customers.