Awesome

BUS2003

A marketing project in Marketing Management (Fall 2018)

Danish toy production company based in Billund
Best known for the manufacture of Lego-brand toys.
Sharp decrease in revenue and massive lay-off in 2017 due to the game industry's domination of the market.

Despite the decline, the financial state of the company is still robust, which implies the need of improvement in its marketing strategy.

Gain thoughtful insight about Lego Korea's marketing efforts by the analysis on their response gained by survey questions.

Survery targeted to 'kidults' active in 'Naver Cafe'.
About 90 respondents.
Contents
- Demographic Information
  - Sex, age, location, income, purchase experience, purpose of the purchase, and etc.
- Brand Perception
  - Customers' perception on the position of 10 companies in the market had been inquired.
  - Three types of companies
    - Toy Material Manufacturer: Lego, Sonogong, Young Toys, and Oxford.
    - Teaching Material Manfacturer: Froebel, Montessori, and Edu Hansol
    - Game Developer & Distributor: Mojang, PUBG, Riot Games
Customer Satisfaction Level on Marketing Efforts
- Marketing satisfaction is comprised of 4 sub-dimentions of product, price, place, and promotion(4Ps)

Validify the current positioning of lego with perceptual map.
- If the positioning needs adjustment, apply repositioning.
- If the positioning has no problem, further study 4Ps
Elicit a marketing recommendation

The cohort of our interest is kidults from the outset.
Three-dimenstional perceptual map had been plotted using Python library (pandas, matplotlib, mpl_toolkits and etc)
Three feature considered:
- Price: high vs. low
- Purpose: educational vs. entertaining
- Popularity: high vs. low

Popularity vs. Purpose
<center> <img src = https://user-images.githubusercontent.com/46237445/50739092-6687b780-121e-11e9-9567-6a64bd6e9769.png width = 250> </center>
- Toy and game companies are clearly distinguished from teaching material companies
- Teaching material companies are well-known in the market.
- Lego has the hig heset brand perception among all other firms.
Price vs. Purpose
<center> <img src = https://user-images.githubusercontent.com/46237445/50739094-6a1b3e80-121e-11e9-83ac-3295b28db873.png width = 250> </center>
- The price of Lego's product is perceived to be very high.
- Lego is obviously categorized as a toy company.
Popularity vs. Purpose
<center> <img src = https://user-images.githubusercontent.com/46237445/50739095-6d162f00-121e-11e9-87b1-a60ae824054a.png width = 250> </center>
- Lego score the highest both in the popularity and price.

Lego is perceived as a well-known known company that manufactures expensive toys.
Lego has undoubtedly a strong brand power
Repositioning or extending to a teaching material manufacturer will result in severe competition.
Price may need some adjustment.

Short life cycle limits the supply, leading to the price rise.
Highly set product price in the second-hand market would affect the release price.

Lego needs to roll out more sales promotions which are comparatively weak than its competitors such as Sonogong and Oxford.