lego presentation

1. ALEYNA KAYA
AYSU ARDIÇ
ÖZGÜR ÇİL
UMUR MUTLU
MARKETING STRATEGY OF LEGO COMPANY

2. • LEGO is founded by Danish carpenter Ole
Kirk Christiansen at his workshop in 1932.
• LEgt GOdt, phrase in Danish which means
»play well»
HISTORY

3. MISSION STATEMENT
Inspire and develop the builders of tomorrow..

4. Political
Maintaining political neutrality is a core of value.
ENVIRONMENTAL ANALYSIS OF LEGO
Economical
In overal, economy has been favorable for decade and is considerably
improving over the years.
Foreign currency fluctuations pose a major risk for LEGO.
Social
LEGO encourages learning through play and empowers children to imagine for
their futures.
Dynamic social culture and improved technology (digital tools etc.) are
influencing kids away from tradition toys.

5. Technological
Digital transformation is game changer.
Too much R&D investments to technological development.
Renewable materials are necessary.
ENVIRONMENTAL ANALYSIS OF LEGO
LEGO is the first toy company has signed
for United Nations Global Compact.
Legal
Poor copyright laws worldwide.
Imitations of LEGO is a serious problem for the company.
Ecological
Renewable energy and material is necessary.
*has reached to %100 renewable energy target in 2017.
*introduced plant based plastic in 2018.

6. SWOT
ANALYSIS
• Form of creative expression
• More than toy,
brainstorming tool for kid
• Partnerships with
movie franchises
• So many options, themes
• Considerably expensive
• Requires massive investment
to R&D, customization.
• Sometimes, it can be hard to
understand for kids.
• Hard to recycle material
• Activity driven learning,
which is a core value of
LEGO, is also a key method
for todays school.
• VR, AR etc. technologies can
be a new way to play LEGO
• Many income groups can
choose cheaper version
over the LEGO.
• Preferability rate of
tradition toys has
considerably decreased.

7. TARGET MARKET & SEGMENTATION
Pre-schoolers & Elementary School Children
2-6 can play LEGO Duplo
5-12 would like to play licensed sets.
Millennials & Childless Adults
wants to run away from work stress
Have more time to spend on leissure
Parents
who have less children
who have dual income
Demographic Segmentation

8. TARGET MARKET & SEGMENTATION
Psychographic Segmentation
Children actively participating in playful learning
who also have following values:
imagination, creativity, fun, wonderer, caring.
Children who love movie franchises
*they demand more licensed products.
who watches their favorite movie with their parents.
Nostalgic parents
who feel younger and make connection with their kids.
Geek Millenials
*they have great loyalty to the brands LEGO is licensed with.
who willing to spend money for «childish desires»

9. TARGET MARKET & SEGMENTATION
Behavioural Segmentation
LEGO segments market due to purchase/usage rate by
this following 6 topics:
Lead users
People who actively engage with on product design
via customer involved programs.
1:1 community
People whose names and adresses they know.
Connected community
People who have bought LEGO
or been to LEGO Shop, LEGO Park once.
Active households
People who have bought LEGO in 12 months.
Covered households
People who have bought LEGO once.
All households
Those who have never bought LEGO.
LEGO privileges premium membership
via its LEGO Club program.

10. TARGET MARKET & SEGMENTATION
Geographical Segmentation
In Istanbul, LEGO has LEGOland Discovery
Center and four different store.
LEGO has stores and theme park all over the world.
But main income comes from North America and Western Europe.
North America also holds leadership in online traffic.
They also opened charity centers in Asia and Africa by
UNICEF Partnership Programs.

11. COMPETITOR ANALYSIS
Product
Barbie Dolls
Winx Club Dolls
Fisher Price
Price
Variable pricing
From middle to upper class
Target Market
North America
International
American Girls
%50 of total sales comes
from North America.
Growth Strategy
Build its power brands into
360-degree play systems.
Drive market growth via digital.
Strengthen its innovation
pipeline.
Product
Monopoly
Transformers
Play-doh
*direct opponent
due to creativity
segmentations.
Price
Oparates in 10$ to
100$ price levels.
Mainly aims to
purchases from kids.
Target Market
Adults, certain ages.
Younger people who are
less likely to have children.
Growth Strategy
Positioned themselves as innovator
Always establishes new business model.

12. COSTUMER PERCEIVED VALUE
For children:
Encourages them to
produce new ideas.
For parents:
Gives trust to parents that
they’re doing something
good for children.
For adults:
Lego brings together young
and old for wholesome.

13. GROWTH STRATEGY
LEGO’s success was based on two foundations;
1. To optimize the company's internal processes with
intelligent steps.
2. Integrating the company processes with costumers.
'seeing the experience from the user's
eye rather than from the company's eye'
Until 2002
Growth strategy of LEGO was to
create unique product groups for
each segments.

14. Integrating the company processes with consumers.
After the researches, company has started to change its approach by segmenting market into
two segments.
Children Segment:
to understand the children who played LEGO actively and their parents.
*kids want to be master at ”something”
*kids want to get high scores and levels.
Adult Segment:
To be closer to its customer, LEGO has launched »LEGO Ambassador Network»
Company has published «The LEGO Factory Project» which allows people to
create their own designs and order from online stores.

15. Expanding Marketing Segments
Insights Toward Girls:
%90 of its costumer was boys.
After researches;
girls do not find LEGO characters close to them.
Developed new product called “FRIENDS” for girls.
Insight Driven Marketing:
Adressing;
creativity, originality and language of the target audience.
Ogilvy Malaysia,
2010
Blattner Brunner,
2006

16. MARKETING MIX (PRODUCT, PRICE, PLACE, PROMOTIONS)
Product
• Video Games
• Board Games
• Films and Television
• Books and Magazines
• Kids Wear
Price
Segmenting Pricing Varies on Complexity of Set
*Smaller sets around 6.99$​
*Set with 150-300 pieces typically 20$- 50$​
*LEGO sets for adults are typically very expensive.​

17. MARKETING MIX (PRODUCT, PRICE, PLACE, PROMOTIONS)
Place
Headquartered in Denmark.
Major production units in; UK, US, Singapore and China.
More than 150 retail stores around the world.
Accessible from internet via lego.com, amazon, e-bay etc.
Promotions
Theme park named LEGOland
Creates a value for customer creativity, originality
4M followers, 2.674 posts.
13.3M likes.​
7,4 million subscribers, 3.5 billion views​
46.6 thousand followers

18. STRATEGIC RECOMMENDATIONS
• More segmentations for girls.
• More mobile app and game
selection to sustain among video
game giants.
• New segmentations strategies like
localization for some countries.
(Chinese New Year Theme?)
• Development for the new
generation technologies such as
AR and VR.
• Creating more social
responsibility event all over the
world to push its core values.