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Lego presentation slides

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Lego presentation slides

  1. 1. Burhan Saiyed Hung Phan Hongyu Hua Siddharth VenkatramanaPresented by Team Diversity
  2. 2. Recommendations Overall strategy: Product differentiation and alternative market Product development through innovation Expand global market share Enhance social interaction
  3. 3. Agenda LEGO strategic position Product innovation Global positioning Technology to build the future Conclusion
  4. 4. LEGO strategic position
  5. 5. Where is LEGO currently?
  6. 6. LEGO strategic position  Strong Revenue Growth with 5-year CAGR of 15.5%.  Costs are controlled well as Net Profit grew 23.6% for 5 years. Value 18,000(mn of DKK) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - 2006 2007 2008 2009 2010 Revenue Operating Profit Net Profit
  7. 7. LEGO strategic position ROE ROA100%80%60%40%20% 0% 2007 2008 2009 2010
  8. 8. LEGO strategic position Restructuring efforts have led to better margins and company growth is in control 0.50Millions DKKper employee 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 - 2006 2007 2008 2009 2010 Net Profit Per Employee
  9. 9. LEGO vs. Competitors
  10. 10. Despite lower total revenue compared to Mattel & Hasbro, LEGO boosted a higher operating cash flow thanks to efficiencyMillions of USD Revenue Operating cash flow 7,000 6,266 6,000 5,000 4,285 4,000 3,500 3,000 2,000 1,000 690 665 376 396 3 0 Lego MEGA Mattel Hasbro
  11. 11. LEGO strategic position • Robust internal operation • Strong position compared to competitors Where should LEGO go next?
  12. 12. LEGO strategic positionTop 10 Country represent 2/3 of the global toys revenue. UnitedStates represent the largest market share for a single country. 30% 26.30% 25% 20% 15% 10% 7.50% 6.70% 5.40% 5% 0%
  13. 13. Overall Strategy Product differentiation Global Expansion  Asia & Australia
  14. 14. Product InnovationLEGO strategic position
  15. 15. Product Innovation Build LEGO’s own brand TOP Product lines Super HerosTM Lord of the RingsTM Hero FactoryTM Pirates of the CaribbeanTM Star WarsTM HOBBITTM NINJIAGO CHIMA CITY 60% FRIENDS Licens
  16. 16. Product Innovation LEGO ≠ Movie toys manufacture Success from LEGO generic brands Develop More generic brands  Cartoon Serials  Comic books  Online games
  17. 17. Product Innovation Build LEGO’s own brand Experiential features  2012 Toy Trend (Researched by Toy Industry Association)  Generation App  Many Ways to Play!  Save ‘n’ Splurge
  18. 18. Product Innovation  ATOM Express Toys  ATOMS is a system of plug-n-play sensors, motors and logic blocks.  Magic Wand  iOS controlSource: http://www.kickstarter.com/projects/atoms/atoms-express-toys
  19. 19. Product Innovation Build LEGO’s own brand Experiential features Toy to live
  20. 20. Product InnovationGamer ProviderNintendoPlay Station $XBOX 74Billion…WiiSmartphone
  21. 21. Product Innovation Integrate LEGO characters into other platforms LEGO bricks = Access to play a video game
  22. 22. Global Positioning Innovation ProductLEGO strategic position
  23. 23. Global Positioning Global toy industry market value Global toy market growth by regions Market saturation Amount spent per child No of children
  24. 24. Expected market value of $100 billion by 2015 Global toy industry market value 2011 $84.07 2010 $83.91Year 2009 $79.55 2008 $77.22 2007 $78.08 Recessio n $76.00 $78.00 $80.00 $82.00 $84.00 $86.00 USD Billionshttp://www.statista.com/topics/1108/toy-industry/
  25. 25. Source: NPD Report: Toy Industry 2011
  26. 26. Toy spending per child 500 486 450 400 365 350 317 312 307 300 284 247USD 250 2009 2010 200 401 361 150 296 308 288 280 244 100 59 50 23 51 20 6 6 0 Australia UK Canada Japan France USA Germany Brazil China Indiahttp://www.statista.com/topics/1108/toy-industry/
  27. 27. Sno No of Kids Country Spending/ki (millions) d1. 352.8 India $62. 238.3 China $233. 62.4 USA $2844. 53.3 Brazil $595. 16.9 Japan $3126. 12.0 France $3077. 11.00 Germany $2478. 10.8 UK $3659. 5.4 Canada $31710. 4.0 Australia $486http://www.statista.com/topics/1108/toy-industry/
  28. 28. Global Positioning Invest and expand in Canada, Australia, Brazil Explore opportunities in India, China &Japan Culturalization of games
  29. 29. Technology to build the future Global Positioning Product Innovation LEGO strategic position
  30. 30. Technology to Build the Future Aid to Global Presence Building Alternative Sources of Revenues Nurturing A Community rather than a Corporate Brand
  31. 31. Adopting Social MediaSource: MarketingProfs, Internet World Stats, 2012
  32. 32. Not just a brand… a CommunitySource: www.rebrick.lego.com
  33. 33. Do’s and Don’ts DO:  Unrestricted access  Content Verification and Recognition  Hold competitions for the NEXT BIG THING! DON’T:  Controlcontent  Market your products Idea factory for …
  34. 34. LEGO MUSEUM Currently has prime location at Rockefeller Center Extension of Idea:  LEGO Museum of Modern Creations!!  Draw talented individuals hold yearly competitions in downtown Manhattan to garner media press and foreigner interest
  35. 35. VIDEO GAMES ARE HERE TOSTAY SKYLANDERS MANIA!! Recorded $1 Billion revenue as of Feb’11 2013 Target Age: 3-8 year olds Toy To Life Category Founders Source: VentureBeat “Skylanders crosses the $1 Billion revenue mark with over 100 Million toys sold. Jeffery Grubb.
  36. 36. LEGO VIDEO GAMEPROPERTIES Indiana Jones Batman Marvel Avengers Lord of the Rings Star Wars Own Brands ALL TOGETHER!!!
  37. 37. ConclusionProduct development through innovationExpand global market shareEnhance social interaction
  38. 38. 6050 48.1403020 18.1 17.7 17.5 13.310 9 8.3 6.3 5.3 0 USA Japan Greater Italy France UK Germany South Korea Mid East China

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