LEGO paper example individual exam PDF

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Executive Summary of LEGO Case 1. Company & Industry The paper takes place in the Toy Industry for Children in Mexico. This is a mature industry with lots of different sub-categories worth 1,655 million dollars with an expected CAGR growth of 3% 2011-2012. LEGO is a global player in the toys industry from Denmark founded in 1958 producing ´stud-and-tube´ bricks that snap together and hold fast. LEGO uses a special technology and it´s competitive edge is precision. The company invented ´building´ toys as the LEGO bricks can be used to build castles, police stations etc… The company has expanded into video games, robots, board games and I-Phone apps but their core business will always be the brick: whether it is Duplo, the big bricks for toddlers or the highly technical LEGO city line for older children. In Mexico the toy business is dominated by 3 main global players: LEGO, Mattel and Hasbro. There is also local production and Chinese import. See for more info and background Exhibit 1, 3 and 4. 2. Problem Statement LEGO is a very successful company but it identified it had an opportunity to sell its products to girls as they stopped playing with LEGO after the age of 4 when they were done with Duplo. Over the years LEGO has launched 5 different product lines directed at girls but they failed to be successful. Four years ago they started an extensive trajectory of research, design and exhaustive testing and they believe they found the reasons why girls did not like LEGO bricks and used these insights in a new product line called LEGO Friends which they believe will be a hit. Launches took place in Europe and USA in 2012 and now it´s time to attack the Latin American market, starting with Mexico. This paper discusses the whole trajectory from market definition to market research, defining objectives, alternatives, and recommendation & implementation plan of the launch. See for more details Exhibit 1 and 2 3. Situation Analysis The 5C analysis shows us that the main challenge will be awareness and education of consumers. The category ´building toys´ for girls does not exist in Mexico; parents will love the combination of making their daughter happy with toys that stimulate learning and the brand is very well perceived. But time frame is critical as 75% of toys sales take place in only 2 months. If we miss that window we have to wait another year. See Exhibit 5 for total 5C analysis 4. Short – Mid & Long Term objectives for the company Long term objective (in 5 years time): 1. Be recognized by 30% of the general public in Mexico as a company that not only sells nice toys but also plays an important role in the development of the country by the education of children: to be measured by image research. 2. Gain 5% market share in the categories defined: sales 11 million dollars Mid-term objectives (in 1 year time): 1. Enter in top of mind (top 3 options of brands and sub-categories, example Barbie doll) of 30% of all parents when looking for a girls gift 2. Increase numeric distribution to 90% of total country specialist stores 3. Reach 1% market share in the categories defined: sales 2,3 million dollars

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Short term objectives (in 1-3 months time) 1. After 3 months of launch in Monterrey, Guatemala & DF reach aided awareness of 20% amongst target group (the parents) 2. One month after launch reach 100% numeric distribution in all specialist stores in these cities including big Wal-Mart, Soriana and Commercial Mexicana stores

5. Alternatives to achieve these objectives Alternative I: Mega Launch ´above the line´ with focus on TV, Radio and Print  Pros: quick results in terms of awareness, easy to implement, can copy other countries materials ● Cons: will position Mega Friends ´just like the other toys´, difficult to explain educative benefits Alternative II: a launch with focus on events, activities and dialogue to position Lego Friends as part of the Mexican community  Pros: room to explain the education benefits and it will give Lego Friends a more positive image ● Cons: requires a lot of coordination with third parties and excellent planning to align everything 4. Recommendation I will follow the line of Alternative II with a very broad campaign focused on the educational aspect to inform parents about the benefits of Lego Friends. I will use the endorsement of reliable parties such as pediatrics to reinforce my message and create talk around the launch. Print in specialized magazines for parents and children will further communicate the message. At the same time I will position Lego Friends as a fun new toy for girls using their famous TV shows (Mexican children watch 2000 hours of television a year) for product placement and appearance of the ´life´ Lego Friends girls. Furthermore I will create a lot of fuss in shopping centers which are number one places to visit with the family in the weekends. 5. Implementation Plan Market Research: Before I launch in Mexico I want to know if the anthropologic research done in Germany, UK, USA and Korea applies to Mexico. We cannot change the basic elements of the product mix but we can change communication and promotions. Therefore we will focus on concept, claims & communication in the second phase of the research.

See exhibit 6 for the details of the following research briefs:

 

1st Research Phase: Ethnographic-Environmental interviews: 8-12 months before launch 2nd Research Phase: Mix testing with Mothers and Children: 8-6 months before launch

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Positioning: Based on the segmentation model I have chosen LEGO Friends to compete in different subcategories:

See more details in exhibit 3.

Proposition

Root strengths: Lego´s fame to produce the best bricks in the world Insight: girls have the same need as boys to be inspired and developed creatively to release their potential but want to experience it in a different way Essence: Lego brings girls an imaginary fantasy world full of possibilities See for more key

details exhibit 7 – Brand

Pack Proposal 6P

Design: the boxes show the imaginary world and it´s very clear what´s inside the box. It´s done with beautiful girlie colours. Content: the sets are packaged in multiple bags for girls to mix building and storytelling as there is no need to build all at once

Product

Product line: launch of limited portfolio of main Heartlake City building + one item for Mia, Olivia, Stephanie, Emma and Andrea to have 6 items to start with Functional benefits: special princess colours and details in the different elements Emotional benefits: stimulation of imaginary world with the help of internet stories

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Price Price range: the original line starts at 6 dollars a piece up tot 65 dollars for Olivia´s house. As I have chosen a limited range I will launch from 6 dollars to 30 dollars where average price will be 20 dollars. Compared to competition: with this price Lego is in the same range as Barbie and +/- 20% more expensive than the other alternatives in the subcategories

Place Where to sell: I choose to start only in the big cities DF, Monterrey, Guadalajara, I will also choose to sell via specialist stores and the 3 big supermarket chains with toy department. I choose NOT to start with internet selling to keep the brand exclusive and to demand more support from trade How to sell: apart from the events, advertising and PR we are creating, I will offer trade excellent POP material

Promotion

Educate: events with paediatrics to talk about the benefits of playing and building, free press covering these events, paediatrics discussing in parents magazines, combined with advertising in these magazines Lego will sponsor waiting rooms of paediatrics and school doctors so girls are offered a ´free trial´ and experience Lego Friends Excite: in shopping centres Lego will build Friends Play Fields and have ´the girls´ walking around to play with little girls and promote the product branding of school busses Participate in famous tv shows with product placement Invite: the magazine advertising will offer a free ´friend´ in miniature with an internet code so the girls can enter and find the first story with Emma or Olivia etc.. to start playing when buying Lego for boys parents find a coupon for a discount of Lego for Girls to create traffic to the stores and decrease the buying barrier See exhibit 8 for 360 Communication Plan

Social Responsibility: Mexico is a country with a lot of problems such as poverty, unemployment and crime and many of these problems have their root cause in a bad education system. Especially the poor people in the village have little access to good education. Aligned with Lego´s mission I propose for Lego to start a ´social leg´ in Mexico supporting education for children in general (not only girls). Ideas how to do this (see more details about background and activities also exhibit 9): 1. Join Government and NGO´s such as Unicef to identity the villages in need and the concrete needs of education 2. Develop joint programs to offer children a good time (the primary objective of toys) while learning new things: this could be building Lego playgrounds, offer ´master classes´ of Lego experts going around the country, could be interactive technological solutions etc.. 3. Create yearly ´Children’s Play Day´ all around the country for example in cooperation with Unilever´s OMO as this brand also wants to stimulate play as means to learn.

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