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.
Despite showing TV ads and other promotions, what went wrong when the activist audience criticized LEGO for stereotyping?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Word of Mouth
Option (1) Word of Mouth — Correct. Word of mouth is what people say about a product to one another. A buyer trusts the opinion of people he knows more than any advertisement. When the activist groups called LEGO’s ads stereotyped, that criticism spread from person to person. The TV and newspaper ads could not undo it, and demand slumped. So the word of mouth had turned against LEGO.
Option (2) Discount — Incorrect. The 10% discount came later, as LEGO’s attempt to revive demand. It was not what went wrong.
Option (3) Old Products — Incorrect. The passage calls LEGO’s toys modern, innovative and of good quality. The complaint was about the ads, not the products.
Option (4) Production capacity — Incorrect. LEGO had no shortage of output. It kept producing more and more, and the stocks went unsold.
NCERT (2026-27 Edition): “Nothing Beats Word of Mouth in India Nothing sways an Indian buyer’s choice more than a word of reassurance from the people he knows. Even for the purchases like cars, mobile phones and home loans, majority of the consumers in India rely on the references from their friends and relatives while making their decisions.” “When the whole world is going crazy with Internet and mobile marketing, it is interesting that for Indians it’s still conventional advertising and word of mouth campaigns that sways their choices. Unlike in the West, Indians come from a very closely-knit society where people get influenced by their peers, relatives and local celebrities. …” |