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Lego´s Segmentation Strategy

Consumers

Segmentation

Analysis of 2 products: Friends Sets and Mindstorms

Demographic Segmentation

Age (Pre-School, Pre-Teens, Adults)

Sex (male & female)

Cohort Effects:

Friends= urban style

Mindstorms=technological era

Psychological Segmentation

PRE-SCHOOL

Visually attracted

Stimulations

PRE-TEENS

Trends

Exploitation of Lerning capacities

ADULTS

Quality

Connection: knowledge + application

Hasbro has a market capitalization of $5.4 billion

Did you know?

● Each year, kids from all around the world spend 5 billion hours playing LEGO.

● On Earth, there is 70 LEGO bricks per habitant.

● If we put together each brick sold each year, we could go all over the world more than 10 times.

● With only six LEGO bricks (regular standard), it is possible to create more than 915 million different combinations.

How little bricks conquer the world!

Industry Analysis

Hybrid Segmentation

Sociocultural + Geographic Segmentation

CAGR of 2.9% over a

period of

3 years (2008-2011)

MARKET ANALYSIS

US Society

Traditional roles

Individual interaction

global economy

CAGR of 2.6%

"perfect life"

LEGO Group´s main activity is the development, production, marketing and sale of play material.

The market for traditional toys according to the Anual Report of 2012, experienced a decline in global value in the last year.

Expectations for 2013: global economic developments are expected to continue to impact the market for traditional toys.

Socio-economic level: set price

Friends=$5.99-$99.99

Mindstorms=$279.99

Psychographical Segmentation

Fashion & Wealthy lifestyle

Competitors

Innovative & creative way of life

Importance of segmentation.

Company identifies who takes and influences buying decision

Four segments:

1. Pre-School

2. Pre-Teens

3. Teenagers

4. Adults

The LEGO Group had become the world's most valuable toy company with a value at over $14.6 billion

Mattel has a market capitalization of $14.4 billion

Children

Parents

Business purposes

Partnerships

global toy industry 84 billion U.S. dollars

284 U.S. dollars spent per child in the

U.S.

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