According to Conny Kalcher, a Lego group representative, the company uses six distinct personas to categorize their customers based on purchase and usage rates: Lead Users—people LEGO actively engages with on product design.
1:1 Community—people whose names and addresses they know.
How does LEGO market their product
LEGO uses its digital platform to provide each segment of its consumer audience with an integrated customer experience.
LEGO Life, a social network app aimed at children under 13, lets users share photos of what they made with LEGOs and leave comments on other people’s creations.
What segmentation method does Lego use to segment the market
Age-based segmentation is another form fo demographic segmentation. It assumes that people in similar age brackets have similar needs, wants, desires etc. LEGO is a good use case for age-based segmentation.
They can segment their customers into two groups.
What is LEGO’s main business model
The LEGO Group’s business model can be attributed to the product models, since so far the main product is sets of LEGO bricks.
At the same time, the company was engaged in the development of its own theme parks, clothing, etc.
What pricing strategy does LEGO use
Lego has adopted a mid-premium pricing policy for its high-end products so that it seems reasonable and affordable to its customers.
It has maintained value-based pricing strategy so that it can create further markets by increasing its customer base.
How does LEGO manage to constantly reinvent its business
Lego had never been a company afraid of taking risks, and this is likely why they were able to reinvent themselves so successfully.
They gave themselves an honest appraisal, and made sweeping changes throughout the organization, shaking up everything from internal processes to their product lines.
What is LEGOs business strategy
Much of this success is due to the LEGO marketing strategy, which embraces digitalization and emphasizes knowing its customer base.
By staying true to the brand identity it established in its inception and merging it with modern marketing techniques, LEGO has managed to keep at the forefront of the competition.
What role did marketing research play in Legos market success
One of the most standout examples of a company being transformed by market research is the beloved toy brand Lego.
They were able to completely transform their revenue potential by altering their product line to break into a vital, and growing, new market.
How does LEGO differentiate itself from its competitors
It innovated by building customer experiences for all ages, made accessible through amazing content like the successful Lego Movies, video games, apps, Legolands and colourful Lego stores around the world.
The first movie generated a half a billion dollars of revenue costing less than $60 million.
Who are Legos main consumers?
- Buyers and users
- The children are the main consumers
- Development, fun and creativity
- To learn and develop while having fun
How does LEGO stay relevant
On a smaller scale, LEGO regularly partners with well-known brands to create new experiences and stay relevant.
For example, they’ve partnered with: NASA to educate kids about space. Facebook to create a series of videos for the “Kronkiwongi” project.
How would you segment the toys market
The toys market is segmented into product type, age group, sales channel and region.
By product type, the global market is classified into action figures, building sets, dolls, games/puzzles, sports & outdoor toys, plush and others.
By age group, it is studied across upto 5 years, 5 to 10 years, and above 10 years.
What is LEGO’s broader strategy
D4B was part of a seven-year strategy named “Shared Vision” established in 2004. The new vision was to rebuild the company’s brand identity as a creative toy-manufacturing enterprise.
What is Lego’s competitive advantage
Their competitive advantage now is the simplicity of their brick. It is simple, versatile, and durable.
Other companies are quite limited with what they can build. With LEGO, imagination is the only limitation.
What is the demographic for LEGO
Lego’s Target Audience The Lego target audience age is from 1 to 15, with children aged 9 or 10 being their ideal market.
What is LEGO brand positioning
Fun is being active together, the thrill of an adventure, the joyful enthusiasm of children and the delight in surprising both yourself and others in what you can do or create.
How much profit does LEGO make a year
Revenue grew 27 percent to DKK 55.3 billion (US$8.3bn) compared with 2020. Net profit was DKK 13.3 billion (US$1.94bn) in 2021 against DKK 9.9 billion in 2020.
Profit grew strongly while the Group continued strategic investments to meet long-term growth.
How is the toy market doing
Global toy sales reached $104.2 billion in 2021, posting an 8.5% growth over 2020.
To learn more about global toy sales or to obtain a free copy of the NPD Group’s Global Toy Market Report, Annual 2021.
When did LEGO start marketing to adults
2005: Lego Ambassador Network One of the first of Lego’s initiatives for connecting directly with its adult fans was through their Ambassador program launched in 2005, now called Lego Ambassador Network or LAN for short.
How much LEGO is in the world
There are over 400 billion LEGO bricks in the world. Stacked together, they are 2,386,065 miles tall, which is ten times higher than the moon.
One LEGO can take up to 4,240 Newtons of force, or over 953 pounds.
What made LEGO successful
Instead of offering kids ready-made toys, LEGO gives them the opportunity to build their toysa much more challenging activity which kept kids engaged for hours.
The LEGO System of Play becomes very successful and the company starts selling it to other countries.
How many people use Legos
More than 400 million people around the world have played with LEGO bricks. 7 LEGO sets are sold by retailers every second around the world.
What percentage of LEGO customers are adults
Among the various products they show (all with grown-ups playing with or building them), they offer an interesting statistic.
100% of online LEGO sales are from adults.
How does LEGO create value
LEGO adds value by enabling team building and problem solving in environments such as the workplace (through LEGO SERIOUSPLAY®, a consultancy tool).
What is the brand personality of LEGO
As illustrated in the LEGO Brand Framework (see Figure 1, below), the company values are in step with this promise: imagination, creativity, fun, learning, caring, and quality.
The company has also developed a fairly elaborate definition–and a name–for its brand personality: My LEGO Friend.
How is LEGO sustainable
As a part of our effort to tackle climate change, our energy consumption is 100% balanced by renewable energy.
We are constantly investing in improving our energy efficiency and installing renewable energy in our stores, offices and factories.
What are Legos core values
Fun as a Fundament The core values of the company – fun, creativity, imagination, learning and caring – all tie in with play, and the company sees this as an incredible asset for building a strong company culture.
Who is the target segment for Lego
LEGO’s optimal target audience is young boys.
In what ways do you think Lego ideas website helps LEGO as a company for its product
Lego Ideas (formerly known as Lego Cuusoo) is a website run by Chaordix and The Lego Group, which allows users to submit ideas for Lego products to be turned into potential sets available commercially, with the original designer receiving 1% of the royalties.
How does LEGO use open innovation
LEGO Mindstorms has become a classic example of open innovation strategy, in which a company makes use of a mix of internal and external brainpower to drive innovation.
These external ideas and technologies could come from its customers, suppliers, and even sometimes its competitors.
What are Legos key resources
Lego’s key resources are its products and intellectual properties, its design and manufacturing facilities, its sales and distribution channels, its various partnerships, and its personnel.