Lego Research

Global marketing
Order Description
Lego Research Task
QUESTIONS LEGO RESEARCH….
1. Emerging markets like China, India and Indonesia offer long-term opportunities for organic growth. However, LEGO still has a small share in developing economies.
What kind of market data would you collect in order to increase market shares in the three countries?

2. What would be the data collection method?
3. How would you measure variables? Provide few examples.
4. Would you use a standardized or an adapted approach to conduct research in the three countries? Why?
5. Is it a good idea to launch LEGO friends? Why/Why not?
6. LEGO Friends has been introduced as a supplement to the current product range.
7. How would you recommend that LEGO management measure the degree of market success for LEGO Friends?
    

 

Solution

LEGO RESEARCH

1. What kind of market data would you collect in order to increase market share in the three countries?

• How much customers are willing to pay / Primary data
• Average income / Secondary data
• What kind of toys / Secondary data 
• Size of the toy market / Secondary data
• Targets (buyers/kids) / Primary data
• Toys safety / Primary data
• Toys trends / Primary data
• Cultural trends / Secondary data
• Market size / Secondary data
• The length of the sales cycle / Secondary data
• Customer segment / Secondary data
• Distribution channels / Secondary data
• Similar toys already on sale / Secondary data
• The sales message / Secondary data
• Advertising methods / Secondary data
• How much is LEGO implanted in these countries / Secondary data

The data collection method should be made up of primary and secondary data research. The secondary research will more be focused on the data concerning the market while primary data is more focused on the target and the product.

3. How would you measure variables? Provide few examples.

We would use a survey to measure the primary data variables because we can ask specific questions to the consumers whilst being more time and cost-effective than using face to face interviews. We would aim the survey at 25-40 year old mothers as according to the article it is this group that spends the most on toys for their children. We can then identify how to increase market share in these countries through their answers to the questions.

  Example questions

• How old is/are your child(ren)?
• Is your child male or female?
• How often do you buy toys for your children?
• How much do you spend on toys per year?
• Do you know the brand LEGO?
• How do you normally hear about the latest children’s toy?
• What is the deciding factor for purchasing a toy for your child(ren)? (classify them according to price, colour, size…)
• Do you tend to only buy toys aimed at the gender of your child?
• Have you ever bought a construction toy for your child?

4. Would you use a standardized or an adapted approach to conduct research in the three countries? Why?

Due to similar consumer trends in China, India and Indonesia it would be possible to conduct a standardized approach to the research. They all have large populations and emerging middle classes that would be willing to buy LEGO products, as well as relatively similar trends towards toys (as we saw in last week’s class).  However, the risk of unreliable data by using a standardized approach would be too much for a large company like LEGO trying to increase market share in such large economies. Also, Translation equivalence, data collection equivalence and functional equivalence would not be the same for each three countries and could lead to a risk of distorting data collection.

Therefore we would use an adapted approach to capture any differences between the countries. A company like LEGO, with a profit of 900 million can afford to take the extra time and expense required to make sure that the correct market trends are identified in each of the countries.