PowerPoint Presentation

Presented by : GROUP 1 Nandini Aggarwal Ankur Arora Prachi Arya Vishnu Bhaskaran Pravin Bokil Hrinya BoseAgenda

LEGO History and Evolution

Product, Positioning, Segmentation and Target market

Branding and Advertising Strategy

Brand Extension & Pricing

Distribution and Retailing

Competitor analysis and Future strategiesINTRODUCTIONLego is the world renowned line of construction toys - interlocking plastic bricksTransitioned from a carpenter's workshop to a global enterpriseProducts have undergone extensive development but the foundation remains the same - the Lego brick which has been named the "toy of the century" twiceInfact The name 'LEGO' is an abbreviation of the two Danish words "leg godt", meaning "play well".

NICHE MARKETThe niche can be defined in two ways:

Brick based construction toy within the larger toy industryConstruction toys based learning systems for education

Development of Lego Introduction of themes and wheelsUse of a new non-toxic material : ABSFirst Lego-based train system introducedLego Land- theme park with elaborate models of miniature towns built entirely with Lego bricksDUPLO- larger brick system for very small childrenOle Kristiansen starts making wooden toysCompany is named "Lego" in 1934Plastic bricks manufactured first in 1949 and then with improved design in 19581930s-1950s1960sFocus shifted to young girls - introduction of doll houses!Mini-figures introducedlaunch of the Expert Series1970sTechnic series - robot based systemsEducational Products Department was launchedLego World Cup held in 19881980sIntroduction of movie based Lego themes - Star wars, Lord of the Rings, Pirates of the CaribbeanBooks, magazines and Board games introducedFilms based on Lego LandBusiness Consultancy - Lego Serious Play!!1990s-2000s

SEGMENTATIONDemographic SegmentationTargets both the gendersCaters to different age groups with the primary focus on 5-12 years of age group

Geographic Segmentation

Currently has its major presence in developed nations such as Western Europe & North America Trying to expand its base in emerging countries such as India and ChinaThe major target of Lego is People with following values

ImaginationCreativityFunLearningQualityCaringPsychographic Segmentation

StrengthsWeaknessOpportunitiesPhone AppsThreatsCompetitionSwitch to Virtual Games

ProductFlagship Product- Construction Toys, Licensed productsMarket share: 80% in US, Western Europe, 50% in Japan & Korea, 10% in India and China and 57% in the worldOnly the best is the bestLEGO products last for 40 years with good careLicensed products have reaped the rewards

PositioningContinuous InnovationCannibalize old with newBrand Loyalty: Quality, creativity and environment friendly designMarket share of 3rd largest company rise remarkably despite of 2008 economic slowdown, whereas it dropped for its top 2 rivals Mattel and HasbroHighest growth in its category during slowdown

Branding & Promotions

Advertising & PromotionsJust Imagine to Play OnSimple and imaginative ads. Mostly print advertisings.

Brand Asset Valuator

Builders Of TomorrowCurrent Brand StrategyBrand Content Empire

LEGO ClickLEGO Micro sitesLEGO Club MeetingsLEGOLANDBrickipedia Packaging

Brand Extension.Continuous InnovationLego is expanding to numerous lines of products without loosing identityHow many LEGO toys a family can buy?AccessoriesMinifigures (pocket money price a huge success)LEGO FriendsGames and PuzzlesThematic/licensed niches Lego Duplo Lego Technic NinjaGo Harry Potter etc.

LegoLand

LEGO in Video GamesPresence since 1997 released over 40 video games.1997

201020112012

LEGO Eyes Girls with LEGO Friends

Category ExpansionMore Product LinesLocalized and event driven toysMinifigures toysCollectible trends

LEGO-Theme based theme parks

Operated by Merlin Entertainments

LEGO-themed Rides for younger Children

Educational Elements such as hydraulophone , Mindstorm etc.

PricingLegos Company culture say no to sacrifice quality for profits.Charges premium for its product.

www.brickset.com

Rs 325

Rs 73000

Rs 47000Rs 19000

RETAILING AND DISTRIBUTIONLEGO Brand Store Direct RetailingModern retailOnline retail Distribution is outsourced Collaborating with competitors- Hasbro distributes Lego brick toys in India.

COMPETITION

Chinese and Korean Lego clones- eg CoCo, Bandai NamcoUnbranded brick toys at fraction of the priceHasbro has stronger presence in the key India through Funskool.Video games

RECOMMENDATIONSExpand presence in India and Latin AmericaUse LEGO outlets in emerging markets-Successful in Eastern Europe and RussiaObtain video game licenses- Target group susceptible to age compressionContinue innovating- Construction toys for girls, event-driven toysBe flexible on pricing and local sourcing

Thank You