Presented by :

GROUP 1
Nandini

Aggarwal
Ankur
Arora
Prachi
Arya
Vishnu
Bhaskaran
Pravin

Agenda
LEGO History and Evolution
Product, Positioning, Segmentation and
Target market

Branding and Advertising Strategy

Brand Extension & Pricing

Distribution and Retailing

Competitor analysis and Future strategies

INTRODUCTION

Lego is the world renowned line of construction toys

- interlocking plastic bricks
Transitioned from a carpenter's workshop to a global
enterprise
Products have undergone extensive development
but the foundation remains the same - the Lego
brick which has been named the "toy of the century"
twice
Infact The name 'LEGO' is an abbreviation of the two
Danish words "leg godt", meaning "play well".

NICHE MARKET
The niche can be defined in two ways:
Brick based construction toy within the
larger toy industry
Construction toys based learning systems
for education

Development of Lego
1930
s1950
s

Ole Kristiansen starts making wooden

toys
Company is named "Lego" in 1934
Plastic bricks manufactured first in
1949 and then with improved design in
1958

1960
s

Introduction of themes and wheels

Use of a new non-toxic material : ABS
First Lego-based train system introduced
Lego Land- theme park with elaborate
models of miniature towns built entirely
with Lego bricks
DUPLO- larger brick system for very
small children

1970s

Focus shifted to young girls - introduction of

doll houses!
Mini-figures introduced
launch of the Expert Series

1980s

Technic series - robot based systems

Educational Products Department was
launched
Lego World Cup held in 1988

1990s2000s

Introduction of movie based Lego themes Star wars, Lord of the Rings, Pirates of the
Caribbean
Books, magazines and Board games
introduced
Films based on Lego Land
Business Consultancy - Lego Serious Play!!

SEGMENTATION
Demographic Segmentation

Targets both the genders

Caters 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 China

Psychographic Segmentation
The major target of Lego is
People with following values

Imagination
Creativity
Fun
Learning
Quality
Caring

Strengths
Strong
brand
Image
Quali
ty

Innovatio
n
Single
Catego
ry
Focus

High
Price
Tag

Weakness

Weakne
ss

Opportunities

Phon
e
Apps
Geograp
hic
Expansio
n

Threats

Feminine
Segment

Product
Extensio
n

Competiti
on
Switch to
Virtual
Games

Product
Flagship Product- Construction Toys, Licensed
products
Market share: 80% in US, Western Europe, 50% in
Japan & Korea, 10% in India and China and 57% in
the world
Only the best is the best
LEGO products last for 40 years with good care
Licensed products have reaped the rewards

Toys Market
$157 Bn
Traditional
Traditional Toys
Toys
$80
$80 Bn
Bn
Constructio
Constructio
n
n Toys
Toys
$6.7
$6.7 Bn
Bn

Video
Video
Games
Games
$74
$74 Bn
Bn

Positioning

Continuous Innovation
Cannibalize old with new
Brand Loyalty: Quality, creativity and environment
friendly design
Market share of 3rd largest company rise remarkably
despite of 2008 economic slowdown, whereas it dropped
for its top 2 rivals Mattel and Hasbro
Highest growth in its category during slowdown

Branding & Promotions

Brand
Equity

Brand Logo

Consumer Based Brand

Equity

The LEGO brand is

synonymous with
imagination, creativity
and innovation.

Brand Promise

High quality products

made of ABS plastics

Advertising & Promotions

Just Imagine to Play On

Simple and imaginative ads. Mostly print
advertisings.

Brand Asset
Valuator

Current Brand Strategy

Builders Of
Tomorrow

Brand Content Empire

LEGO Click
LEGO Micro sites
LEGO Club Meetings
LEGOLAND
Brickipedia
Packaging

Brand Extension.Continuous Innovatio

o is expanding to numerous lines of products without loosing ide

w many LEGO toys a family can buy?
ccessories
inifigures (pocket money price a huge success)
EGO Friends
ames and Puzzles
hematic/licensed niches
Lego Duplo
Lego Technic
NinjaGo
Harry Potter etc.

egoLand

LEGO in Video Games

Presence since 1997 released over 40 video games.

1997

2010

2011

2012

LEGO Eyes Girls with LEGO

Friends

Category
Expansion

More Product Lines

Localized and event driven toys

Minifigures toys
Collectible trends

LEGO-Theme based theme parks

Operated by Merlin Entertainments
LEGO-themed Rides for younger Children
Educational Elements such as
hydraulophone , Mindstorm etc.

Pricing

Legos Company culture say no to sacrifice quality for profits.

Charges premium for its product.

www.brickset.com

Rs
325

Rs
19000

Rs
47000

Rs
73000

RETAILING AND DISTRIBUTION

LEGO Brand Store
Direct Retailing
Modern retail
Online retail

Distribution is outsourced
Collaborating with competitors- Hasbro
distributes Lego brick toys in India.

COMPETITION

Chinese and Korean Lego clones- eg CoCo,

Bandai Namco
Unbranded brick toys at fraction of the
price
Hasbro has stronger presence in the key
India through Funskool.
Video games

RECOMMENDATIONS
Expand presence in India and Latin America
Use LEGO outlets in emerging marketsSuccessful in Eastern Europe and Russia
Obtain video game licenses- Target group
susceptible to age compression
Continue innovating- Construction toys for
girls, event-driven toys
Be flexible on pricing and local sourcing

Thank You