LEGO case
In the year when LEGO was launched, they became popular because of the modern kind of quality toys they were producing. Their products were designed in the beginning for young boys who have a tendency to get bored easily and wanted to play with innovative toys. They designed building blocks which could be joined together to form more than hundred combinations. This kept the young consumers engaged for long time. They advertised in the television ads and in the newspapers. Later, they encountered a backlash from the activist groups that LEGO was not inclusive and had been advertising their products using stereotypes like only boys play with building blocks or only boys are creators while showing girls playing with dolls in their ads. This led to slump in the demand for LEGO products and they faced another problem, their stocks went unsold while they kept on producing more and more thinking that if the LEGO products are of good quality and design with new features, they will be sold automatically. To induce demand, they kept on giving 10% discounts to those who buy two products.
A new marketing manager was hired, and she stopped the production until a new advertising campaign was released. She hired a public relations agent to manage the negative sentiment in the market. A new line of Lego games were released with both male and female characters. The new ad campaign focused on showing both young boys and girls playing as well as adults involved in the fun activities. LEGO brings to the table for all. A lucky draw was introduced for the first hundred buyers. LEGO achieved 20% sales growth in a month and they were successful in fostering their belief in creative and innovative futuristic games for all.
Which concept did LEGO believe in initial days of its launch?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Product Concept
Option (1) Societal Marketing Concept — Incorrect. This concept looks at the customer’s needs and also the long-term good of society. LEGO came near it only later, with games for all, after the backlash.
Option (2) Production Concept — Incorrect. This concept believes customers want goods that are cheap and easily available, so the firm aims at mass production at low cost. LEGO’s focus was on quality and design, not on low price.
Option (3) Product Concept — Correct. The product concept believes that customers will buy a product of good quality with new features, so the firm keeps improving the product. LEGO kept producing “thinking that if the LEGO products are of good quality and design with new features, they will be sold automatically”. That is the product concept.
Option (4) Selling Concept — Incorrect. This concept believes customers will not buy enough unless they are pushed by heavy promotion. LEGO turned to discounts only after sales fell. In the early days it believed good products would sell themselves.
NCERT (2026-27 Edition): “The Product Concept … Thus, with the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features, etc. Thus, product improvement became the key to profit maximisation of a firm, under the concept of product orientation.” |