lego : identifying the market segment
DESCRIPTION
Case analysis of LegoTRANSCRIPT
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Aug. 06
Case AnalysisMarket segmentation Strategy
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Team MembersAbhishek Jaiswal
Amarpreet Gill
Amrinder Sahota
Mohit Pandya
Rutul Patel
Prepared For: Alain Londes
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Agenda
Lego: Enjoying 55th Anniversary
Case Review
Market segmentation
SWOT
Factors affecting target market decision
Reaching beyond
Social media marketing strategy
Lessons Learned
Recommendations
Questions
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Lego: Enjoying 55th Anniversary
Begin in furniture, table and chair
1916- purchased by Ole kirk Christiansen
Great depression 1929
Wooden version of Toys
1949- Plastic Lego
1953- Lego Bricks/Lego Mursten
1958- Patent registered
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Case ReviewMarketing product on Social Web
with the advancem
ent in Social Media
Efficiently segmentin
g the target market
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4P’s of Marketing
Product• Good
Compatibility
• Long Lasting
• Focus on project
• Multiple Products
Price• Little
expensive
• Repeat customers gets discounting rates
Places• Toy
stores worldwide
• Online websites
Promotions• Packaging• Lego Land
and special workshops
• Internet advertising
• Free magazine
• Word of mouth
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Market Segmentation
1:1 Community
Lead
Users
Connected
Community
Active households
Covered
househol
ds
All
household
s
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SWOT Analysis
Strengths
Brand Creative Non-violent(Optional)
Copyright & patent
Wide Lego community
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Weaknesses
LimitedProduct offering Expensive Inefficient
productionChildren
hazardous
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Opportunities
Product Extensio
n
Globalisation
New product
line
Feminine segment
Partnership with
companies
Tie up with production
houses
Phone apps, online gams
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Threats
Competition Rules & Regulation Switch to the virtual games
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Factors influencing Target Market Decision
Creativity
Imagination
Fun
Learning
Caring
Quality
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How can Lego reach secondary audience
Primary market: 6 to 12 year olds
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Social Media Marketing Strategy
MonitorRespon
d
Amplify Lead
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Lessons Learned
• Companies having one or similar products must do market segmentation.• new platform of social media• Consumer considers purchase
Views brand on company’s website and is improved by users reviews• Consumer interaction with brand after and before purchase.• Consumer references and experiences• Evaluation of Brand • Consumer buys the product, photographs the product in store, post it to for other to comment on and receives personal manages with coupon from the brand.• Should start developing interactive games.
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Recommendations
• Targeted road shows around the country• Should create interactive games and websites• User discussion forums• Identifying more consumers• Building Relationships• Corporate Social Responsibility
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Lego Today
• Lego group announced an open source Firmware (Software for innovation) for developers.
• Introduced new product like Lego Bible, Lego Testament.
• Increased partnership more film production houses for characters of the movie like they did with Star Wars and Harry Potter.
• Developed Mindstorms community for being more interactive with audience.
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Questions
Q1) Since Lego’s patent has expired, how Lego would capitalize on the product by charging premium prices since new competitor would enter the market?
Q2) What do you think the future of marketing in LEGO will be?
Video: http://www.youtube.com/watch?v=_lUOTyEsjw8
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Future relevant update for Lego lovers
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Happy valentine day