The Lego Group: Building Strategy‚ Case 10 Overview LEGO‚ the brand of toy that has been played with by multiple generations of people was founded during the Great Depression in 1932 by Ole Kirk Kristiansen‚ a Danish carpenter. Kristiansen started making toys out of wood and had 12 employees under him. The word LEGO combines two Danish words leg and godt‚ which mean “play well” and in Latin‚ fittingly means “to put together”. It’s ironic that LEGO was given that name because it was only later
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Lego Case Study Analysis Pallav Mathur Q 1. What led the LEGO group to the edge of bankruptcy by 2004? By the end of 2003 Lego was already facing crisis owing to dipping profits and declining market pool for toys. Lego had planned to expand into markets beyond building toys and needed huge investment to be made in it. But it found difficult to compete when fad players and other toy manufacturers were giving them stiff competition in a market that already was supposed to be giving lesser returns
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Bibliography: Silverman‚ D. (2006). Interpreting Qualitative Data. 3rd edition. Sage. McDonald‚ M. Dunbar‚ I. (2004). Market Segmentation: How to do it‚ How to profit from it. Elsevier Butterworth-Heinemann. Pumphrey‚ A. (2005). Business Superbrands. Superbrands Ltd. Tedlow‚ R.S. (1990). New and Improved. Heinemann Professional Publishing. Gilligan‚ C. Wilson‚ R.M.S. (2003). Strategic
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BENEFITS OF MARKET SEGMENTATION Gautam S Rashingkar Market Segmentation ● Dividing a market into smaller groups of consumers or organisations in which each consumer has a common characteristic such as a need or a want. ● It involves building up or breaking down of potential buyers into groups called market segments. ● By doing so the marketers will have a better understanding of their target audience and thereby make their marketing more effective BASIS OF MARKET SEGMENTATION 1. 2. 3. 4. 5
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Marketing Prepared by Devi (B30611231) 5th April 2004 Kensington Institute Indonesia Market Segmentation is the process of dividing a market into direct groups of buyers who might require separate products or marketing mixes. There are several major bases for segmenting the market; they are geographic‚ demographic‚ psychographic and behavioral variables. Geographic segmentation Geographic segmentation calls for dividing the market into different geographical units such as nations‚ regions‚ states
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Market Segmentation ________________________________________ Targeting a segment of the market can be a powerful strategy. It’s the concentration of marketing effort to dominate a market niche. Market segmentation is the process of identifying and targeting groups of individuals who are similar to one another. Markets can be segmented in many different ways: by product or service needs‚ by sensitivity to price‚ by geographic area‚ by demographic segment‚ or by psychographics and lifestyles. Successful
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SegmentationElaboration Geographic Segmentation Geographic segmentation involves a business dividing its market on the basis of geography. Market can be divided by geographical areas‚ such as by city‚ county‚ state‚ region (such as West Coast)‚ country‚ or international region (such as Asia). It can also be divided into rural‚ suburban‚ and urban market segments. Besides that‚ climate or total population in each area can also be the segmentation. According to The Body Shop‚ they set up the stores
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Segmentation and customer profile. Segmentation is dividing a market into a smaller groups that shared similar needs‚ wants‚ characteristics‚ and behaviours towards the goods and services. (reference). The market segmentation is a must and important to the all oraganizations. This is because each customers have different needs and wants‚ so that by segment the market‚ the organization can identify which customers that can match with their products and services. In Dell‚ the segmentation is a backbone
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Lego Case Study 1. What business goals were set by Knudstorp? Ans. Jorgen Vig Knudstorp‚ the CEO of Lego set the following goals for the company which was performing very poorly‚ * To remain profitable while maintaining growth‚ continuous innovation and quality of the products * To reach to broader customer segment * To cut expenses in production and supply chain and making these processes more efficient 2. What business strategies were set by Knudstorp? Ans.
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Market segmentation Market segmentation is simply a modern marketing strategy in which the market for your customers are divided in various several groups and segments based on some major key factors such as demographic‚ geographic‚ psychological and behavioural factors. By dividing the market‚ the sellers that that try to deliver good value to their customers will be able to have better understanding of their target audience and thereby make their marketing more effective. Market segmentation also
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