Group E:
Member Name:
Contribution:
Junfan Shi
LEGO Swot base on age groups(1.5-3,4-5)
Lin Hangchen
LEGO Swot base on age groups(6-12)
Guangyang Chen
LEGO Swot base on age groups(13-18,18+)
Ziwei Deng
LEGO Customers Segmentation
Lego’s Target Marketing Strategies
LEGO Swot base on age groups
Age: 1.5-3
Strength
Weakness
Educational enlightenment. Compared with
ordinary children's toys, Lego's children's toys
cultivate fine motor skills, imagination and
love for creativity. It has enlightening
significance.
Safe. Safety of toys is important for Little
kids. LEGO bricks meet rigorous child safety
standards. To prevent accidental ingestion by
children between 1.5 and 3 years old, this
category has larger bricks
High quality. Compared to other puzzle toys
companies, Lego’s products have greater
quality.
Expensive. Kids from 1.5-3 years old don’t
have the ability to buy their own toy. Parents
could find cheaper substituted toys.
Need parents' company to play with. Some
products in the 1.5-3 years old category are
still too complicated for this age group.
Parents need to spend time playing lego with
their kids.
Lack of awareness of the theme product.
Lego has a lot of theme products like SpiderMan, Batman,ect. However, kids from age
1.5-3 weren't really aware of those figures.
Opportunities
Threats
Increase of awareness of children's
education. Parents are becoming more and
more aware of their children's enlightenment
education. So the tendency to buy
educational toys will be stronger.
Negative population growth. High
consumption areas and developed countries
have negative population growth. Sales of
products of 1.5-3 years old could be
decreasing.
Age: 4-5
Strength
Weakness
Rich in IP. Kids from age 4-5 start to be
aware of figures from animation. There are
abundant theme products from this age
group.
Improve social skills. Kids from age 4-5 are
starting to build their social skills. Kids can
play lego with their friends to improve their
social skills.
Stimulate children's interest in learning.
Lego provides educational benefits. Children
from this age group are starting to build their
learning interests and learning ability.
Too many competitors. Too many other toys
companies produce toys for this age group.
Opportunities
Threats
Development of early education. The early
education industry is developing rapidly. As
an educational toy, Lego could develop with
the development of the early education
industry.
Video games. As the development of the
video games, more and more children from
this age group are attracted by video game
instead of real toy.
Age: 6-12
Strength
Weakness
Customer brand loyalty
LEGO education has penetrated into the
national education system and the curriculum
of all ages, so these children may play Lego
from their younger age.
Too simple
Lego may be too simple for children of this
age. If they don't have a lego habit, it's hard
to become a new user.
Expensive
Lego is expensive compared to other toys for
this age group.
Opportunities
Threats
Combine with VR or AR
Due to the rise of video games, Lego can
combine its products with AR or VR, allowing
kids to play on another platform.
Tightly connected with ip
It is vulnerable to IP quality.
More alternatives
Children of 6-8 begin to play with electronic
devices or a broader range of toys.
Age: 13-18
Strength
Weakness
Innovation. Many Lego brick toys for this age
segment are compatible with technologies
like the Lego TECHNIC Control+ app and
equipped with control boards and motors.
Education. Users (teenagers) can learn
coding while playing with the smart Lego
toys. Inspiring users' interest to study
Engineering.
Licensing Deal with Popular IP. Lego
license with Harry Potter, Marvel,
Automobiles brands that attract teenagers.
Pricing. The typical Lego bricks are pricey
while these with smartphone integration or
coding functions cost even higher than $400.
Threshold to Play. Though Lego makes
apps to lower the learning cost of coding,
users still need fundamental coding skills to
play.
Opportunities
Threats
Coding Camps. Lego can work with
institutions like coding camps which will
benefit both sides. The Coding camp could
attract more teenagers and Lego could have
big purchasing orders.
Parent Choice. Compared to video gaming
consoles, parents prefer kids playing with
Lego toys even though Lego smart toys cost
high because they believe it’s more
meaningful.
Substitutes. Coding toys like VEX Robotics
offer more possibilities to play and they’ve
entered many junior & high schools.
Software Entertainment. Many teenagers
would rather spend their spare time watching
Netflix or playing video games. Also, Coding
softwares are developed like games to attract
users.
Age: 18+
Strength
Weakness
Brand Loyalty. Many people have been
playing Lego since they were children. Lego
will stay at the first place when picking similar
products for themselves or for kids.
Abundant IP. Replica of many great
architectures, movie ip, automobiles. (huge
size)
Smartphone Integration. Lego with
smartphone integration makes it more fun to
play.
Various Price Lever Products. Good gift
options to choose.
Narrow SKU for adults. The Lego store
mostly sells toys for kids and teenagers, not
many designed for adults.
Time Costy. Huge projects need users to
spend much time building.
Opportunities
Threats
Introducing New Technology Toys. Lego
can introduce new large & new tech toys
since adults have more money to spend.
Shopping Habit. Research illustrates the Z
Generation prefers spending to saving, and
they are not price sensitive.
Lego Park. Like Disneyland, the opening of
Lego Park would bring a positive influence on
the selling.
Substitutes as decoration. Products like
PopMart art toys are cheaper and offer
various selections.
Shipping Period and Cost. Due to Covid
Pandemic, the shipping period and cost both
increase.
LEGO Customers Segmentation
●
Demographic Segmentation
Age
Features
Adults
Lego Alumni, Lego collector, Parents for educational purpose
Teenage
Enjoy bricks building while more dopamine released in the brain
pre-schoolers
Exploration of learning capacities, visual attraction, IQ develope
●
Psychographic Segmentation
Characteristics
Product Preference
Children who enjoy playful learning
Architectural, City, Animal theme
Children who love movies
Disney, CD, Harry Potter, Batman theme
Millennial generation with brand loyalty
Clothing, Backpacks, Books, Keychains
●
Geographic Segmentation
Currently Lego has its major presence in developed nations such as Western Europe and North
America. Lego is trying to expand its base in emerging countries such as India and china.
Lego’s Target Marketing Strategies
●
Product Specialization
For main products, Lego conducts product specialization as target market strategy. When its
expertise in a product category can play a role in many different market segments, the company
will engage in product specialization by adjusting product shape, themes, and complexity to
meet the different needs of different customer groups.
Markets
1.5+
Main Product:
Bricks
Specialization
Eazy animal
toy and
playset
●
4+
More detailed
buildings
6+
Higher
complexity
toys
9+
Licensed
set
13+
18+
Licensed
set and
model
Complex
models
Single Segment Targeting
For other products, such as clothing, backpacks, books and keychains, Lego put adults who are
fancy about lego as its target segments. Those customers have strong brand loyalty to lego and
have an addiction to collecting all kinds of items from lego just for memorizing their childhood.
Markets
1.5+
4+
6+
9+
13+
By Product:
Clothing
Keychains
-
-
-
-
-
18+
Adidas
Levis