Presentation on the usage of Marketing

tools and techniques by LEGO to sustain

in the competitive Toy Industry.
Presented By
Fairooz Ahsan- 1230216030
Asif Hossain -12102186030
Sanjina Mahmud-1210523030
Navila Ahsan- 1211404630
Arif Mahmood- 1220427630
30

LEGO: At a glance

LEGO Group is a family business that started in 1932 making wooden toys in the city of
Billund, Denmark.
Only in 1958, Godtfred Kirk Christiansen, son of the company founder, created the LEGO
brick, later praised Toy of the Century, by both Fortune Magazine and the British Association
of Toy Retailers
Today LEGO is the 4th largest toy manufacturer in sales volume, after Mattel, Bandai-Namco
and Hasbro, with a turnover of 2,511M in 2011 (originally 18,731 MDKK) and employing more
than 9,000 worldwide.

LEGO: Product Portfolio

Lego has a diversifying ranges of 33 products

LEGO: Global Operation

The LEGO Group built four amusement parks around the world, known as "Legoland".
October 2002 saw a significant change in The LEGO Group's direct retail policy with the
opening of the first so-called LEGO Brand Store in Cologne, Germany
In April 2014 foundation stone of a manufacturing facility in Jiaxing, China, to solely supply the
Asian market was revealed
In September 2014, the construction of a new production hall at the LEGO factory in Kladno,
the Czech Republic, was completed.

LEGO: PEST Analysis

Context

Trends

Positive Impact

Negative Impact

Political

Ban/ taxes in product imports from

other regions

Cost increase
Need to produce locally

New middle class families with share

of wallet for toys

Market is declining in developed

countries

National Regulations to promote

safer toys for children
High Import Taxes in developing
countries

Economic

Global economy is going sluggish

High growth of middle-class in
emerging countries

Socio-Culture

Pressure to use environmental

friendly toys
Pressure to use educational toys i.e.
digitally educate children

Leverage on company culture

Perfect for Lego toys opportunity to
sell LEGO games

Cost increases
Competition from games

Internet availability
Smart mobile devices usage

Be closer to customer
Opportunity to create new market
place

Difficult to project intellectual

property

Technological

LEGO: Main Competitors

Company

Sales

Mattel

6,266M$

Bandai-Namco

5.53M$

Employees

28,000

OI/Asset

18.4%

7,013

10.1%

JP

Barbie, Polly Pocket, Hot Wheels, Matchbox,

Speed Racer, Power Wheels Disney Classics,
High School Musical, CARS, Batman, FisherPrice, Little People, Baby Gear, View-Master,
Sesame Street, Dora the Explorer, Go-DiegoGo!, Mickey Mouse, Winnie the Pooh, Handy
Manny

Gundam, PRETTY CURE!, POWER RANGERS,

Tamagotchi, Baby
Labo, Little Battle eXperience, Games, Arcade
machines, Movies, Amusement stores and parks

Playskool, Transformers, My Little Pony, Littlest

Pet Shop, Tonka, GI Joe, Super Soaker, Milton
Bradley, Parker Brothers, Tiger, Wizards of the
Coast

43.9%

DK

Playskool, Transformers, My Little Pony, Littlest

Pet Shop, Tonka, GI Joe, Super Soaker, Milton
Bradley, Parker Brothers, Tiger, Wizards of the
Coast

7.8%

JP

4.29M$

5900

14.4%

Lego

3.56M$

9,374

2,294

2.42M$

USA

Core Brands

USA

Hasbro

Tomy-Takara

Country

Tomica, Plarail, Licca-chan, Koeda-chan,

Licensee of Transformers, Disney and other
brands

LEGO: Customer Segment

Segment

Pre-School

Pre-Teen

Teenagers

Adults

Who

Parents, Family

Parents, Family

Parents, Family,
himself/herself

Himself, herself

What

Dolls, Figures, Plush, Action

Figures

Activity, Construction,
Electronic Toys,
Vehicles, Games,
Puzzles

Outdoor, Sports, Video

Game

Video Game, Electronic Toys

Whom

<5 yrs

6-12 yrs

13-18 yrs

>18 yrs

Special occasions,
Christmas season

When

Where

Specialized stores,
hypermarket

Specialized stores,
hypermarket

Anytime

Specialized stores

Specialized stores, hypermarket,

on-line

LEGO: Key Success Factor

SEGMENT

KEY BUYING FACTORS

COMPETING FACTORS

KEY SUCCESS FACTORS

PRE-SCHOOL

PRE-TEEN

TEENAGERS

ADULTS

Longevity of toy, game

Connect with friends

Quality
Safety Reputation
Certifications
Visual aspect, Stimulation
capability

Consumer trends
Learning capabilities
Appearance

Consumer trends
Challenge
Connect with friends

Quality

Distribution
Packaging
Advertising

Distribution
Advertising
Evolution

Price
Advertising
Connection w/ devices

Platform availability
Price
Integration

Brand
Innovation
Collectibles
Retail Availability

Brand
Innovation
Upgradeability
Range of accessories
Retail Availability

Brand
Product Evolution
Quality

Brand
Quality
Variety
Retail Availability

LEGO: Core Marketing Element

Analyze

Market
Consumer
Competition
Distribution
Channel

Attractive
Prices
Evaluating the
economies of
scale
Lowering cost
of production

Product
Diversification
Innovation

Promotion
Social Media

Placement
Right- time
launching

LEGO: Marketing Mix

LEGO: Branding Strategy

Adherence
to
corporate
Values

USP

Timely
Brand
Expansion

Relevency

Clear
Benefits

LEGO: Marketing Loopholes

Marketing
Loopholes

No illustrative market segments

for substitute goods
Introduction of new social media
is missing
No segment for consumer
reference
Evaluation of brand is absent
Should start developing
interactive games

LEGO: Recommendation

As business nature of Lego relies on global operation, it is very much essential to keep a
strong hold on social media. This can be done by launching innovative websites and apps
thereby creating new social platforms and thereby attracting targeted consumers along with an
incredible increase of new consumers.
It is mandatory that there should be an illustrative evaluation all the existing brands of Lego
otherwise consumers wont get a clear picture of the products is all about and this will also help
the consumer to compare and contrast between the substitute brands.
Nowadays market pattern is more prone to tech savvy toys, and comes to digitalization video
games is the most competitive and profitable section of the toy industry but Lego lacks in
innovation to its video games section compared to its main competitors Mattel and Bandai
Namco these drawback can be cull down if talented bunch efficient employees are recruited.

Thank You
Any
Questions