Lego Toys Project

2. INTRODUCTION
• LEGO means small toy making company.
• It was introduced by Ole Kirk Christiansen in 1932 in
Denmark.
• In 1934, his company came to be called "Lego", from the
Danish phrase leg godt, which means "play-well".
• By 1954, Christiansen's son Godtfred Kirk Christiansen had
become the junior managing director of the Lego Group.

3. Product
 Lego have not forget the young adult and adults who
grew up with LEGO.
 Good compatibility and safe to use.
 Long lasting and Lego focus more on product.

4. Price
 Good quality allows for reasonable price.
 Price attracts repeat customers.
 Price is reasonable to allow for repeat purchase.
 Good discount rates are offered for attracting
customers.

5. Place
 Sold at toy stores worldwide.
 Bricklink.com is the site where Lego is sold online.
 Sold in specialist stores

6. Promotion
 Advertising products in the same set on packaging.
 Legoland and special workshops.
 Run successful internet advertising.
 Sheer amount sold Lego run a popular website.
 They offer a free magazine.
 The customers are very important to Lego as they help
promote the brand.

7. What is Positioning?
• In marketing, positioning has come to mean the process by
which marketers try to create an image or identity in the
minds of their target market for its product, brand or
organization.
 Re-positioning
 De-positioning

8. Lego Positioning in the market
 Increase market share
 Invest in emerging markets
 Develop innovative new product
 Expand “ direct to customer” activities
 Expand Lego education

9. Market Segmeation
In this the lego group segment their market
base into four different base.
They are as follows:
• DEMOGRAPHIC SEGMENTATION BASE
 Fostering creativity and learning are primary goals.
 Targeting both genders and different age groups.
 Products engage children at every stage of their
development, and products to cater to the needs and
interests of older people.

10. Psychographic Segmentation Base
The target group of The LEGO Group are people who believe in
the following six values.
• 1. Imagination
• 2. Creativity
• 3. Fun
• 4. Learning
• 5. Caring
• 6. Quality

11. Behavioral Segmentation Base
• It contributes to learning and development.
• LEGO tries to increase brand loyalty by
creating platforms such as:
 LEGO Club
 LEGO CLICK

12. Geographic Segmentation Base
• LEGO currently has presence in countries in
Europe, North America, Asia and Mexico.
•The company is currently working on increasing
market share in North America and Eastern
Europe, and expanding into emerging markets.

13. Advertising
• AIDA Model
 A - Attention: Attention is the 1st phase that will spark the
interest of a consumer.
 I - Interest: Interest is the 2nd phase that can create a desire
for the product/service.
 D - Desire: convince customers that they want and desire
the product or service and that it will satisfy their needs.
 A - Action: The consumer will purchase the
product/service after completing the 3 phases

14. Lego advertising

16. Build - Play - Change
• LEGO wants us to think of its brand not so much as a toy,
more as a way of life.
• Lego is instrumental in developing a child’s creative mind
and problem-solving ability.

17. Marketing Research
Lego’s Market Share

18. Market Research of Lego
• Lego has split their market research online communities into
three types:-
 Lead users
 Community users
 Connected community users
• Product innovation drives growth in last two years.
• Combating age compression.
• Competition is approaching.
• LEGO Fans to Help Build New Products.

19. Market Research of Lego For Indian
Market
• Lego joined hands with Funskool to expand its footprint in the
India.
• Nowadays kids are getting more into virtual world.
• Lego plans in the digital space.
• Lego Expansion plan in India.

20. Buying behavior
 LEGO’s core target market are children.
 LEGO’s another target market are parents.

21. Today’s reality and Lessons for Marketers
 LEGO puts on targeted road shows around the country.
 LEGO promotes family events and content specifically
for parents.
 LEGO created a user discussion forum.

22. Essence of customers orientation
 Identifying and Segmenting Customers.
 Learning About Customer Needs and Preferences.
 Building Relationships.

23. Early product development
• In 1932, Ole Kirk's shop started making wooden toys such as piggy banks,
pull toys, cars and trucks.
• Following World War II, plastics became available in Denmark, and Lego
purchased a plastic injection molding machine in 1947.
• One of the first modular toys to be produced was a truck that could be
taken apart and re-assembled.
• In 1947, Ole Kirk and Godtfred obtained samples of interlocking plastic
bricks produced by the company Kiddicraft.
• In 1949 the Lego Group began producing similar bricks, calling them
"Automatic Binding Bricks”, then manufactured from cellulose acetate.
• In 1958 the bricks were improved with hollow tubes in the underside of
the brick.
• In 1963, the material used to create Lego bricks, cellulose acetate (CA),
was dropped in favor of more stable acrylonitrile butadiene styrene (ABS
plastic), which is still used today.

24. Designers at Lego
• Lego designers: attention to detail no attention to cost.
• Virtual product development: Finite Element Modeling.
• Lego: Design for business.

25. New development strategies
• Kids take charge of product development at LEGO.com
• Lego Cuusoo
• Lego CLICK

26. Lego and DHL
• Egil Møller Nielsen appointed to the position of vice president
of global distribution logistics.
• Historically, Lego had multiple logistics providers and
suppliers.
• Now its logistics operations are centralized.
• Stock from seven of its former distribution centers across
Europe are now consolidated into DHL Supply Chain's one
million square foot global distribution centre in Jirny, near
Prague in the Czech Republic.
• From this giant hub - the equivalent in size to ten football
pitches - the toy manufacturer serves 14,000 customers
worldwide, spanning 135 countries.

27. Lego and Funskool
• Funskool is the official distributor of Lego products in India
• Initially, Funskool will offer the main categories of the range
including LEGO Duplo, LEGO City, LEGO Creator, LEGO
Technic, LEGO Atlantis, LEGO Racers, LEGO Mindstorms and
LEGO Starwars.
• Funskool plans for intensive campaigns on TV and print media
to promote its product.
• The Lego toys will be available through Funskool's retail
network of over 4,500 points of sale across the country,
including large format departmental stores.

28. Thank you