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Lego´s Segmentation Strategy

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by

Helena Sternkopf

on 19 September 2013

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Transcript of Lego´s Segmentation Strategy

Lego´s Segmentation Strategy
Segmentation
Analysis of 2 products: Friends Sets and Mindstorms

global toy industry 84 billion U.S. dollars
Consumers
Children
Parents
Business purposes
Partnerships
How little bricks conquer the world!
Importance of segmentation.
Four segments:
1. Pre-School
2. Pre-Teens
3. Teenagers
4. Adults
Company identifies who takes and influences buying decision
Industry Analysis
Mattel has a market capitalization of $14.4 billion
284 U.S. dollars spent per child in the
U.S.
CAGR of 2.9% over a
period of
3 years (2008-2011)
global economy
CAGR of 2.6%
Competitors
MARKET ANALYSIS
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.
Hybrid Segmentation
Demographic Segmentation
Age (Pre-School, Pre-Teens, Adults)
Sex (male & female)

Cohort Effects:
Friends= urban style
Mindstorms=technological era
Traditional roles
Socio-economic level: set price
Friends=$5.99-$99.99
Mindstorms=$279.99
Psychographical Segmentation
Fashion & Wealthy lifestyle
Innovative & creative way of life
Psychological Segmentation
PRE-SCHOOL
Visually attracted
Stimulations

PRE-TEENS
Trends
Exploitation of Lerning capacities
ADULTS
Quality
Connection: knowledge + application
Sociocultural + Geographic Segmentation
US Society
Individual interaction
"perfect life"
Hasbro has a market capitalization of $5.4 billion
The LEGO Group had become the world's most valuable toy company with a value at over $14.6 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.
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