Lego Group, Marketing and Operation Management Report
Marketing and Operations Management Report
For: LEGO Group
By: Éva Gaál
On: 17 November 2008
At the request of the LEGO Company, this report advises the company on the expansion of its operation based on market segmentation, appropriate marketing mix, new product design and development, including total quality management for outsourcing new partners.
LEGO Group is the fifth-largest toy manufacturer of the world and has operated successfully for 75 years; however, it has had some problems in the last couple of years. To solve these problems, LEGO introduced a seven-year strategy plan, which consists of some fundamental changes regarding to the …show more content…
LEGO’s unique position is based on the high quality, durability and safety of its products, utilizing a premium branding strategy where a higher price is associated, which therefore differentiates LEGO in relation to its competitors within the current market.
The Technic products consist of more complex and special elements, therefore the production cost is higher than the standard bricks. Customers are prepared to pay this higher price to get the added benefits of the special design product of LEGO. However, this higher price (£60-£120) completely fits into the LEGO products price range (£20-£200).
LEGO uses the following channels to provide