Consumer Behaviour Mini Case 2
Lego Toys
By
Aziz Ud Din Ahmed Jafri
Stu ID: 1002010261
Lego Toys
Introduction
LEGO Group is the manufacturer of LEGO toys, one of the most popular brands of toys in the world. This case describes the success story of the LEGO Group. It also explains the initiatives the company took to adapt its products to the changes in tastes and preferences of children over the years. The LEGO Group's brand protection efforts are also discussed in detail.
Company Background
The Lego Group began in the workshop of Ole Kirk Christiansen, a carpenter from Billund, Denmark, who began making wooden toys in 1932. The word lego is an abbreviation for two Danish words leg and godt meaning play well. In 1916, Christiansen purchased a woodworking shop in Billund which had been in business since 1895. He earned his living by constructing houses and furniture for farmers in the region, with the help of a small staff of apprentices. His workshop burned down in 1924 when a fire, lit by two of his young sons, ignited some wood shavings. Undaunted, Ole Kirk took the disaster as an opportunity to construct a larger workshop, and worked towards expanding his business even further; however, the Great Depression would soon have an impact on his livelihood. In finding ways to minimize production costs, Ole Kirk began producing miniature versions of his products as design aids. It was these miniature stepladders and ironing boards that inspired him to begin producing toys.
It was in 1934 that the company name Lego was coined. Ole Kirk held a contest amongst his staff to see who could come up with the best name for the company, offering a bottle of homemade wine as a prize. Christiansen was consid ...