Market Segmentation of Lego

Lego is a Danish toy brand that deals with the manufacturing and retailing of products worldwide. The company produces toys for children that consist of interlocked colorful plastic bricks that make an array of gears, mini-figures, and many other pieces. The toys allow children to construct varying objects like vehicles, buildings, robots, etc. The pricing also varies; however, the toys cost above average in this industry. The Lego Group reported an operating profit of 10.8B US Dollars in 2019, compiled from the 570 Lego branded stores in roughly 130 countries worldwide. So, what secret is hidden behind this company that pursued success?

Let’s commence with the targeting strategies applied by the Lego Group.

To do so I suggest to watch the commercial example below first.

We see the commercial starts with displaying numerous scenes of father and son jolly images. They are a symbol of happiness that parents can have with their children. Primarily they play varying games that generate positive and sincere emotions and smiles on their faces. As we witness the man hugs and plays with his little boy, they wear clothes designed similarly and play like nothing can stop them.

What can be better for a kid than having such moments with the loveliest person? However, there is an essential factor that makes their joy more complete. It is the factor of Legos that makes their day memorable and perfect.

You probably noticed the massive amount of Lego toys they dealt with. There were vehicles like a plane, eyeglasses, penguins, a giant castle with rolls, robots, scary animals like crocodiles, and the last scene is a high towel.

We witnessed too many toy varieties that were possible to construct from the parts of Lego’s. Creativity and innovation are the core values here are shown. The father aimed to dedicate all his time and efforts to his child, which probably is the most vital facet for the little boy.

Their openness and ambitions towards the time, environment, and overall atmosphere reveal much about the Lego Group’s target audience.

The target segment: Balancers

Values and Lifestyle

Balancers are positive and full of life people who never cease to make progress in any field they are interested in. They are used to balance everything they are surrounded by, like job, family, friends, rest, etc. As this is more than a problematic duty to do correctly, it sometimes causes immense tension in their life. The family is crucial for the Balancers. They take care of the well-being of the family members and the loved ones. Stability always feels the need and does their best to have a stable family life, job, relationship, etc.

They like to pursue a life of challenge where they are open to new things and appreciate variety. They seek new facets they are not acquainted with, and they will actively pursue them. Moreover, they want to have complete control over everything that shapes affairs. It gives them a sense of security and stability. Obviously, one can control and lead if education and the level of development are on the right stage.

Balancers are above average university graduates, being relatively well educated and moderately intellectual. They believe in the mind’s power and want to continue developing themselves throughout their career with new knowledge and experience.

As the target audience is ambitious and aspires for much more in life than to just survive, they usually do their best to achieve the level they think they deserve. However, they also consider the sacrifice from their family they need to have to do so. This reveals much about their balancing personality.

Attitude to Shopping

Balancers are more fond of ads that are somehow engaging and have something fresh and unique. This is because they pay much attention to the creativity and imagination the company has been applied. This is because they are generally acquainted with many kinds of ads and are tired of the same old ones.

Among the parents, they are earlier adopters the most of the parent lifetime.  They aren’t against trying new products, and they like to investigate a unique effect if they had some information on it or think that they might use the item. Balancers always feel a lack of time, which means a poster, ad, or promotion needs to hit them from the first glance.

Balancers never doubt before paying extra for quality or for what they desire. The target audience tends to be brand loyal when they have found a brand that fits them perfectly. The time limitation compels them to do most of their household shopping once a week and minimize the time and effort spent on this.

This is a perfect occasion for a family trip, so the entire family may join in shopping. Good money management is also essential; that’s why they balance the quality and pricing aspects of a good.

Other Interesting Facts about Balancers

• Balancers outspoken and opinionated people, who generally have their views on how society should be.
• They appreciate open-mindedness and progressiveness to be pursued by the community they live in. This segment values only constructive debates and will engage in them in the presence of rationality. 
• Balancers are deeply concerned with their country’s welfare and think that one should do whatever he/she can be it small or large. They are perfectly aware of the country’s problems even if they are related to the outside of the city they generally live in. 
• Hobbies are something that Balancers don’t pay much time to. Nonetheless, they try to have a resting time for them working out at the gym. They try to exercise if and when possible.

16 Personalities (Which one is for your business?)

As we can see, the main target audience for Legi is the ‘’Balancer’’ segment, which consists of people aged from 28-50, who love to enjoy their time. 

He is a leader in his workplace and is a very enthusiastic person. He keeps relations with everyone and tries to provide services to them if there is an opportunity. He always wants people to be thankful for the benefits he provides them.

This could be a huge encouragement for him to be sure that he is doing the right things for people. Lego has targeted Balancers, as they are the most interactive people in all the existing  16 Personalities, and the conversations around coffee are very enjoyable.

Balancers are just 1 of 16 Personalities that you may meet during your daily business and marketing activity. The behavior of these kinds of people are described in detail in the book (16 Personalities). The knowledge of this is very important so that we can have the answers to the following insights.

1 / Motivations

2 / Fears

3 / Desires

4 / Preferred ways of standing out

The overall answers to these insights will allow you to find your ideal customer.All these types of clients are included in the book called “16 Personalities”, which will open a new Marketing world to you. This will give you a key to the heart of your dream client. By recognizing all 16 Personalities, you will easily find a target customer that matches your brand.

Positioning Strategies

Positioning is one of the most fundamental points any company needs to give the most attention and efforts to. Positioning strategies are for enhancing public consciousness about a brand in order to make people aware of what makes them unique and demanding. Right positioning skills are essential secrets that pursue a company or a brand to further development and future success.

Enterprises related to right positioning depends on the industry first. The Lego Group belongs to the industry of sophisticated toys, which is a rapidly changing system. The company intensively invests in Research & Development in order to keep the pace of the rapid developments in the industry.

As the focus of The Lego Group products highly depends on new movies or multiplications from children’s interest fields, such as the movies of Harry Potter and Star Wars franchises. They create toys according to the items displayed in different series of the film.

Making the right positioning in terms of understanding the demand of products and volume is essential. It became apparent when Harry Potter’s movies ceased to be released, but The Lego Group persisted in producing goods that resembled the film; however, they did not sell the delivered quantity of toys as it was expected.

Another big failure was having a too low amount of a particular toy that surprisingly starred as demanded; however, there was no amount for sale.

Such failures positively impacted the company’s success because they took further steps according to mistakes done before. However, the foremost positioning strategy is giving children an opportunity for storytelling. Kids can exert their imagination for storytelling as they wish, which appeals to them the most.

Moving Forward, let’s talk about the marketing mix of Lego

Marketing Mix of a company is a way to explore the 4Ps that are the most significant points of a brand: they are product, price, place, and promotion. They aim to investigate thoroughly and show the customers the brand image and enhance the popularity to gain more of demand.

Product

The Lego Group Proposes more than 3400 varieties of toys and other products. You can find the most unique, modern, and sophisticated toys such as buildings, vehicles, robots, and items for different occasions like parties, etc.

There are not only buildings such as police stations, megamalls, beach houses, organic café, or something like that but also famous buildings such as Burj Khalifa, Colosseum, and many others.

Vehicles vary from airplanes like Skywalkers and cloud jets to emergency cars like fire commanders, motorcycles and bicycles, boats and Jeeps, etc. The above-mentioned examples of Lego toy sets include several elements and have not consist of the only item.

This is another attraction for kids. However, the company’s product variety includes not only toys but also clothes for children under the age of twelve, Lego movies, Keyrings, accessories, etc. 

Price

The goods of Lego Group are priced above average in this industry. However, as everything is for a reason, this is not an exception. The first factor of a little bit of expensiveness of the toys and other related products of the brand are related to the quality it serves. They use high-quality raw materials for manufacturing purposes and mechanisms that help to function the moving toys properly.

The unmoving ones are also structured by virtue of high technologies because if the toy is a kind of high towel or building, it needs to have doors or windows with access to open and close without an obstacle.

However, there are a bunch of toys that are affordable for people with a middle-class income. So, we can say the company’s pricing matches the quality and innovation aspects of the products on sale adequately.

Place

The Lego Group evolved such distribution channels that anyone from any place can obtain Lego products. It is so, firstly, due to the huge amount of franchised or retail stores worldwide. The company has a high presence in more than 130 countries.

The other way they deal with customer satisfaction related to acquiring their goods easily and nimbly is E-commerce. One can order a toy from Lego.com’s official website or find them on Amazon, eBay, and other retailing online malls.

Promotion 

Lego deals with its promotion and advertising through TV, media, print magazines, in-store posters, and ads, etc. Nonetheless, the above-mentioned spices of publicity were not the only way the company behaved to enhance and maintain brand recognition.

They put immense effort while applying marketing tactics like commercials or movies to allure more children. The Lego Group creates toys according to the favorite multiplications or movies of kids that could warm their hearts. They also release Lego movies which many popular heroes participate.

Through big occasions like the Olympics, marketing campaigns and enterprises are dedicated to brand recognition where toys depicted as sports heroes are produced and highly consumed. 

So much about the segmentation strategies of The Lego Group. More precisely, the targeting and positioning strategies discussed in the article are the key indicators of the success of the brand. We hope you found out the profound meanings of the exerted enterprises and the huge way the company passed to gain prominence. For more similar blog posts, check out the main page of our website.

Looking for top-notch client personas crafted exclusively for your business?

Our team at thesocialgrabber.com is here to help!

• Don’t hesitate to reach out to us with any questions you may have.
• Our dedicated team is always eager to assist you with your business requirements and ensure you get the most out of your marketing efforts.
• Ready to get started? Simply leave us your email address and we’ll be in touch as soon as possible to discuss how we can help take your business to the next level.