Aug. 06

Case AnalysisMarket segmentation Strategy

Team MembersAbhishek Jaiswal

Amarpreet Gill

Amrinder Sahota

Mohit Pandya

Rutul Patel

Prepared For: Alain Londes

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

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

Case ReviewMarketing product on Social Web

with the advancem

ent in Social Media

Efficiently segmentin

g the target market

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

Market Segmentation

1:1 Community

Lead

Users

Connected

Community

Active households

Covered

househol

ds

All

household

s

SWOT Analysis

Strengths

Brand Creative Non-violent(Optional)

Copyright & patent

Wide Lego community

Weaknesses

LimitedProduct offering Expensive Inefficient

productionChildren

hazardous

Opportunities

Product Extensio

n

Globalisation

New product

line

Feminine segment

Partnership with

companies

Tie up with production

houses

Phone apps, online gams

Threats

Competition Rules & Regulation Switch to the virtual games

Factors influencing Target Market Decision

Creativity

Imagination

Fun

Learning

Caring

Quality

How can Lego reach secondary audience

Primary market: 6 to 12 year olds

Social Media Marketing Strategy

MonitorRespon

d

Amplify Lead

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.

Recommendations

• Targeted road shows around the country• Should create interactive games and websites• User discussion forums• Identifying more consumers• Building Relationships• Corporate Social Responsibility

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.

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

Future relevant update for Lego lovers

Happy valentine day