Lego toys

Submitted By-:Meenu GoswamiDeepika ThakurNitika GargTarandeep Kaur

HISTORY• Found in 1932 by Ole Kirk Kristiansen.

• World’s fifth-largest manufacturer of toys.

• Now owned by Kjeld Kirk Kristiansen, a

grandchild of the founder.

• Head office is in Billund, Denmark

• Wooden toys initially and diversified into

plastic toys

• Sold in more than 130 countries.

• World’s children spend 5 billion hours per

year playing with LEGO bricks

The LEGO Brick - Toy of the Century • Brick in its present form launched in 1958

• Interlocking principle with its tubes makes it unique

• Prepared as PART OF SYSTEM-compatible designs

• Play themes such as fire station, police, airport, knights’ castle, racers etc.

“More than 900 million different ways of combining six eight-stud bricks”

Strategies

• Targets all ages and stages of development

• Come up with a new product in twelve months

• 3 stage process• More efficient production procedures.• Accessibility-Big Retail Stores,

Smaller toyshops, Online stores like amazon.com, etoys.com etc

Contd...

• LEGO Club-www.legoclub.com

• Lego Magazine• Lego comics• Lego Leagues

• LEGO Educational Division-aid in learning

LEGO Learning Institute Playful Learning Panels

More Targeted Marketing

Focus on Product Development

Preschool Products

Bricks & More

Play themes

Licensed products-based on movies or books

MINDSTORMS 1998

Video games-Lego Island 1997

Strategies in Turbulent times

• Analyzing children taste and preferences-video games

• Budget cuts• Laid off employees• Selling some part of its assets• Leading research in child

developmentVision Lab was set up on January

1, 2003, with the aim of developing and communication.

“Yes , We agree with their decision of selling part of stake of LegoLand Parks”

Problems faced by the Company

• Expiration of last patent in late 1980s• Imitation of their products• American market shrank from $820 million in

2001 to $630 million in 2003 (NPD Funworld), • New toy Manufacturers entered the Market

(Mega bloc)• Offered similar Product at lower price• Growth of discout retailors like Walmart, Kmart• Change in children playing habits

Financial Performance

Contd.

• Lego group in 2003 decided to focus on Core Business

• LEGOLAND needs was capital. • To implement its concepts on a

wide scale.• To promote them to full range

of potential visitors.

Present Scenario

• Lego and Disney released different Disney subthemes.

• Lego and Cartoon Network released the Ben 10 subtheme.

• “The Adventures of Clutch Powers” the first full length Lego movie, is released.

• Making Lego “International Brand”• The LEGO Book has been launched. • Promote the new Lego Education Center in

Brisbane, Australia