The paper "LEGO Group Situation Analysis" is a perfect example of a marketing case study. The advertisement on Facebook will be measured through Facebook analytics which will demonstrate the number of people clicking on the ads placed over Facebook. The effectiveness of the television advertisement will be measured by considering the purchase rates for the LEGO Playbox as a result of the discounting presented over the television advertisement. Mandatories The LEGO logo Must evoke a call to action amongst the customers Provision of the links to external outlets like social media Justification Situation Analysis LEGO Group is a toy-making company based in Billund, Denmark.
Having been founded in 1932, the company has developed a network of about 120 stores globally with a famous philosophy ‘ good quality play’ that attract kids to the products from the company (LEGO. com. 2016). Brand Background The LEGO Playbox has been in the market since 2015 and through its development, fun and play forms the key elements of its existence (Altstiel and Grow, 2016). The underlying strategy of learning and development through playing has enabled the growth in ideas and innovation of the brand which has contributed positively to the consistency in the customers that go to LEGO stores from time to time. Market overview / Industry overview The toy market globally has been on the rise targeting children under the age of 15.
In Australia, the toy industry has been known to grow at a rate of 0.1% annually owing to the tough competition. The weak growth rate is associated with the household discretionary income and consumer sentiment (Altstiel and Grow, 2016). Customer analysis The customers for the toy industry are more driven by the pricing and the quality of the products provided.
The credibility in the toys and games made by the group is a key determinant on the purchase behavior of the customers (LEGO. com. 2016). For instance, the customers find the products reliable since the toys and games allow the kids to learn while having fun and not just focused on the fun element of the toys and games. SWOT Strengths The strong brand name allows the company to market its products with ease (LEGO. com. 2016). Diversity in the products provided by the company. Learning experiences involved in the games developed promotes positive brand perception among the customers. Weaknesses Imitation of the LEGO products by other companies decreases the marketability and reliability of the LEGO products Fast brand switching within the toy market contributed to by the intense competition from companies like Mattel Inc.
(LEGO. com. 2016). Opportunities The schools in Australia are allowing the LEGO products to be used in school competitions which are providing an alternative market other than the normal household focus. The emerging trend in collaborative channels like the social media platforms provide a fast market for the products for LEGO contributing to the fast-growing market share for the company. Threats The rise in the outdoor games which parents and schools are encouraging the kids to participate in is a threat to the success of the LEGO games which are thought to contribute to obesity amongst the kids (LEGO. com.
2016). The emergence of social media platforms is providing the kids with alternative forms of entertainment other than the toys and games for the company. Insight (problem/opportunity) The LEGO company is facing stiff competition from other major toymakers that have gained ground within Australia in such major outlets like Woolworths.
This has made it necessary for the company to venture into a new line of merchandise to attract new customers while retaining the existing ones. Target Audience The brand purchaser targeted by the LEGO Group includes parents and schools. The sole users for the playbox are the kids who are driven by their desire to create and build things using the LEGO Bricks which sharpens their creativity skills (LEGO. com. 2016). Moreover, the influencers include the bloggers and social media users who will be key players in advertising of the products. The targeted audience for the LEGO products are generally both male and female kids aged between 10-15 years and reside in Canberra and Australia at large.
Psychographicaly, the audience involves online gamers who have been recorded to have an internet connection at their homes or schools. The behavioral aspect of the audience indicates that the kids prefer active roles that are provided by the LEGO Bricks rather than the passive role of television watching (Minnium, 2016).