presentaton on lego
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legoTRANSCRIPT
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