Fluent Essays

Using the same organization selected in Week 1 for the course project.  Presume that the organization you selected has recently implemented a customer relationship management (CRM) system. ****Research the key elements of a CRM system and defend at least three best practices that your organization can use to improve its customer retention. Make sure you support your choices with well-reasoned arguments and external sources. ****Justify at least five critical pieces of customer information needed from your key market segment. Why do you need to collect this specific data? ****Justify five survey questions that might be used to evaluate the segment’s experience with your organization. Why do you need to know this information? ****Justify a plan for how customer data (previous two bullet points) will be collected. The plan should detail the methods to be used (e.g. written survey, focus groups, interviews, etc.) and where those methods will be integrated into the organization’s processes (e.g., a hotel sending an e-mail survey following a customer’s stay at a specific location). Submit your plan in a 3- to 4-page Microsoft Word document, using APA style. 1 Lego Group Mina Prophitt South University Strategic Marketing Professor Quigg August 11, 2021 Lego group is a private organization that manufactures toys for children. The organization was established in 1932 in Denmark. This organization has more than 17,431 employees. The organization aims to build toys that will inspire children to explore and challenge their creativity. The organization has also built several amusement parks and opened numerous retail stores for its toys in different parts of the world. Several trends affect the Lego group; it is important to identify these trends by performing a SWOT analysis of this organization. The Lego Group organization is a privately held company that deals with the manufacture of Lego brand toys, which consists of interlocking plastic bricks. The organization also has several amusement parks in different countries, and it has retail stores which sell the organizations products (Andersen and Ross, 2016). The customers of this organization are children who are between one to fifteen years of age. However, the company has also increased the number of grown-ups who purchase their toys over the past few years. The organization has introduced special products for customers segmented on age. The organization builds simple toys for children under three years and bigger and more complex for customers above ten years old. The first strength of Lego Group is its brand equity, which is determined by the perception of the customers perception of the organization. Lego enjoys strong popularity and brand loyalty globally due to the quality of its toy products and how it markets them. It has resulted in the organization having a long-term competitive advantage over its competitors has enabled the organization to maintain its leadership position. Its leadership position is another strength of this organization where the organization has retained its leadership position regardless of increasing competition (El Sawy et al., 2015). The companys use of e-commerce is one of its strengths, especially during the COVID 19 pandemic. A study that was carried out determined that one is purchased online for every three toys people buy. This strength has resulted in the organization has resulted in organizations selling more toys during the pandemic. Its website saw a double increase in the number of visitors in the year 2020. The other strengths include its marketing strategy, financial performance, and licensing deals which it has with franchises such as Star Wars and DC comics The first weakness of the organization is its pricing strategy. The Lego group uses the premium pricing strategy on its toys, which has affected the number of sales it makes and its growth. The organizations target market has become price sensitive, where the customers prefer toys with a lower price. These price-sensitive customers opt to purchase generic toy products, resulting in a decrease in sales. The second weakness of the organization is that the target market has been limited to children and teenagers (Sørensen, 2020). The focus on teenagers and children has limited its customer base, making it impossible to penetrate a new customer base. Although the organization has started producing lego toys that adults can use, the brand does not appeal to a large percentage of adults. The first opportunity that Lego Group can take advantage of is digital games and interactive learning. The organization should consider investing in digital games and interactive learning because of technological advancements and schools emphasis on experiential learning. Children and teenagers have turned their attention to digital gaming; if the organization invests in digital gaming, its customer base will increase. The second opportunity that the organization can take advantage of is the diversification of its products. Lego group can improve its competitive advantage by introducing new products and using its existing influence and customer base to market these new products. The first threat which Lego has to deal with is that of counterfeits. Counterfeit products are affecting the sales of this organization because they are sold at reduced prices. The counterfeits are of low quality, which can be dangerous to the children and teenagers playing with these toys, resulting in brand dilution. One of the biggest counterfeit threats which are affecting Lego Group is a Chinese brand known as Lepin. Lepin produces toys that are very similar to those produced by Lego Group, which are cheaper (Burton et al., 2020). The second threat that the organization faces is competition. There has been an increase in the number of organizations that manufacture toys over the past few years. These organizations are offering the cheaper alternative of toys to gain a competitive advantage over the Lego group. The mission statement of the Lego group addresses the people that it serves who children are. However, it does not mention the products or the services which the organization offers to its customers. The mission statement does not address the market component; it only states its target market: children. The mission statement also fails to mention the organizations core competencies and how they measure their success. We aim to inspire children to become leaders of tomorrow by providing them with the necessary toys needed to improve their creativity and imagination. The improved mission statement is suitable for the organization because it addresses the core competencies. It includes the customers, products of the organization, and how the organizations products improve peoples lives. Lego Group is a privately held company that deals with the manufacture of Lego brand toys, which consists of interlocking plastic bricks. The mission statement of the organization address majority of the core components, such as the customers the organization serves and the products it offers. This organization is affected by several trends which the SWOT analysis has determined. References Andersen, P., & Ross, J. W. (2016). Transforming the LEGO group for the digital economy. Burton, R. M., Obel, B., & Håkonsson, D. D. (2020). Organizational design. Cambridge University Press. El Sawy, O., Kræmmergaard, P., Amsinck, H., & Vinter, A. L. (2015). Building the foundations and enterprise capabilities for digital leadership: The LEGO experience. Sørensen, O. V. (2020). Valuation of LEGO Group.