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LEGO's Market Segmentation Strategy

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Michaela Thompson

on 3 April 2015

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Transcript of LEGO's Market Segmentation Strategy

LEGO's Market Segmentation Strategy
Successful, Innovative Marketing
Building Contests
History Cont.
In 1949, the LEGO Group created the LEGOs we know today.
They were called " The Automatic Building Block"
LEGO began in Billund, Denmark as a carpentry workshop in
1916 as Ole Kirk Christionsen
Challenge of Social Media

As a company they felt "walled off"
To better understand consumer behavior and effectively use target personas to
segment the market
When their furniture sales fell in the Great Depression, the
company moved to making toy furniture
Plastics became availible, and the company began making plastic
toys after WWII
In 1953, they were renamed LEGO Murhsten, LEGO Building Blocks
The name LEGO comes from combining the two first letters in LEG GODT, in English “Play Well”, and also happens to mean “I put together” in Latin.
Tying in Hollywood Themes such as Star Wars and Harry Potter
Coming Soon, Scooby Doo and Warner Brothers
Frozen, and Dinsey Princesses
LEGO Movie
Felt they had to change their corporate culture to allow social web in order to build relationships with their customers and incorporate social media
Goals of Social Media Marketing :
Share Proprietary Information with loyal customers
Better Understand the Wants of their customers
6 Personas:
Lead Users
1:1 Community
Connected Community
Active Households
Covered Households
All Households
Introduce new products
Receive Feedback
Lego Stickers
Lego felt they had to compete with great user created content
Vine and YouTube
Also felt they had to compete with user content
Now are great tools to connect with users, new and pros

1. Ratcliff, C. (2014, June 4). Why is LEGO's Social Media Strategy so Outstanding?. In Econsultancy. Retrieved from https://econsultancy.com/blog/64955-why-is-lego-s-social-media-strategy-so-outstanding/

2. LEGO Group Partners with Warner Bros. Consumer Products To Announce First-Ever LEGO Building Sets Inspired By Classic Animated Series Scooby-Doo (2015, January 23). In LEGO. Retrieved from http://www.lego.com/en-us/aboutus/news-room/2015/january/lego-scooby-doo-launch

3. Gustafsson, K., & Katz, B. (2014, December 2). For Lego’s ‘Frozen’ Under the Tree, Try Santa’s Backyard. Bloomberg Business.

4. Fernades, I. The Building Blocks for Social Media. MediaCom, 3-6. Retrieved from http://www.mediacomusa.com/media/950974/the%20building%20blocks%20for%20social%20media.pdf

5.Admin. (2012, July 11). LEGO's Approach to Customer-Orientation. In Business Development Strategies. Retrieved February 3, 2015, from http://wearedevelopment.net/2012/07/11/legos-approach-to-customer-orientation/

6. Russell, J. (2013, December 19). Facebook's Latest Stickers Let You Express Yourself with LEGO's Beloved Mini figures . In The Next Web . Retrieved February 3, 2015, from http://thenextweb.com/facebook/2013/12/19/facebooks-latest-stickers-let-you-express-yourself-with-legos-beloved-minifigures/

7. Gustafsson, K. (2014). Lego Crowdsources Its Way to New Toys. Businessweek.Com, 4.
Lego Friends
Lead User
- people who LEGO actively engages with

1:1 Community
- people whose names and addresses LEGO knows
Connected Community
- people who have bought LEGO and have been either to a LEGO shop or park
Active Household
- people who have bought LEGO in the last 12 months
Covered Households
- people who have bought LEGO once
All Households
- those who have never bought LEGO
LEGO's Rules for Social Media
LEGO Ideas
LEGO's very own Social Media Platform (Lead Users)
Allows users to submit ideas
Receive feedback
Get votes
Their idea may be turned into a real LEGO set
Communicate with customers 1:1
Successful Innovative Marketing
Challeges with Social Media Marketing
Social Media Marketing Strategy
LEGO's Rules for Social Media Marketing
Vine & YouTube
LEGO Ideas
" Think of our brand as the creator of a stage from where the consumer can shine" -Lars Silberbauer
Never outsources conversations with consumers to other agencies
Always listens to consumers conversations and sentiment
Responds and Engages with consumers quickly
Never engages with children under 13 years old
1. Which of the personas does LEGO spend most social media marketing time and effort?

2. What factors may have influenced LEGO's target marketing decisons?

3. LEGO's optimal target audience is young boys. Who do you think their secondary target audience might be? What social media marketing efforts might help the company reach those other audiences?

4. How does identifying a target audience with persona's help a company select the best social media platforms to focus their marketing efforts on?
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