Apply the behavioural and psychological segmentation criteria presented in this chapter to The LEGO Duplo and LEGO Architecture product lines. Which criteria are the same for both product lines, and which are different?
CASE 14 Behavioural and Psychological Segmentation Criteria: The LEGO Case LEGO, the Danish toy manufacturer of plastic building bricks, has a large website that is translated into 19 languages across 26 different markets. Most of LEGO's 36 product lines have their own microsites with apps, games, downloads and even display sections for builders' own models-a good alignment with the needs of the digitally able generation. However, only one product line, LEGO Duplo, has external links to social media such as Facebook, Twitter and Pinterest on the product line microsite. At the other extreme, the LEGO Architecture microsite focuses on images of the current range and information about the original buildings. So, why is LEGO moving its online presence away from an exclusive focus on Web 2.0 on most of the product line microsites to include social media for one customer segment, and back to more traditional explaining the principles of modernist architecture, Web 1.0' marketing for another? This case looks developed in conjunction with architectural design at why demographic segmentation criteria are not bureaus from around the world. enough; behavioural and psychological segmentation also have a role to play in reaching out to target Target Segments consumers . The majority of LEGO's main website focuses on The LEGO Duplo and LEGO reaching out to school children up to the age of about 14, and emphasizes interaction and the co-creation of Architecture Product Lines content through the ability to upload the builder's own models to forums. LEGO Duplo bricks are designed to be used by young The LEGO Duplo and LEGO Architecture microsites are children, in the age range two to five years. The LEGO fundamentally different, as both of these microsites Duplo bricks are only found in the range of sets that focus on adults. The British LEGO Duplo microsite make up the LEGO Duplo product line and focus on (http://www.lego.com/en-gb/duplo) focuses on themes that toddlers and pre-school children can relate mothers and children and links to five social media to, such as animals, food and trains. LEGO Duplo bricks platforms. are also much larger than the standard LEGO The image on the Duplo site and the links to social bricks, making it easier for the youngest children media are unique to the LEGO Duplo microsite; for to build creatively without the need for the fine motor comparison, the microsite of LEGO Junior, a product skills that older children have. line that targets the four- to seven-year-old segment, The LEGO Architecture product line, on the other hand, has an image of two children building a LEGO product is primarily targeted towards the adult segment. together and no offsite links to social media, despite Standard LEGO bricks are used to build scale models being aimed mostly at parents. It makes sense to of famous buildings such as the Eiffel Tower, the Great reach out to adults through social media using mobile Wall of China and the Statue of Liberty. Only one devices, as the majority of adults are constantly LEGO Architecture product encourages independent online and have a high consumption of social media, especially Facebook and Pinterest, using a variety of creativity, containing white bricks and a booklet238 CHAPTER 7 Market Segmentation and Positioning PAR Conclusion: Segmentation devices. Whilst pre-schoolers do not understand the internet in the same way as their parents do and do and Online Marketing not have the fine motor skills to use a mouse, they can The LEGO Duplo and LEGO Architecture microsites have a different target segment to the other LEGO CRE use tablets and smartphones due to the intuitive user interface of these mobile devices, which, coupled with the high level of consumption by parents, makes the microsites: adults rather than children. This provides LEGO with a challenge: how can the product line mobile platform ideal. In contrast, a key aim of the LEGO Architecture product microsites address the needs of adults rather than children? The answer lies in enabling those in the VAL line is to entice adults back to building with LEGO bricks, as LEGO tends to 'lose' builders after the age target segment to receive the most important content of about 14. Rather than focusing on themes that in the format from which they gain the most value. In may be seen as childish by some, its aim is building a the case of LEGO Duplo, this means optimizing content 8 Value TH scale model of a famous structure. The target segment to focus on social media through mobile devices; in for LEGO Architecture understands the web in the same the case of LEGO Architecture, information about the q Value TI way as the LEGO Duplo target segment does; however, real-world building that inspired the model. So even the value that needs to be provided by the LEGO though both microsites target the same demographic 10 Value TI Architecture microsite is different. segment-adults-behavioural and psychological segmentation criteria enable LEGO to identify and add Behavioural and Psychological extra value on the product line microsites. 11 Value Th Segmentation Criteria, and 12 Value TI the LEGO Duplo and LEGO Architecture Microsites Questions o ari JA w connect From a market segmentation perspective, a key TEA difference between the LEGO Duplo and LEGO 1. Do you think that LEGO targets the right segment Architecture product lines on the one hand, and with Its LEGO Duplo microsite? Can you think LEGO's other product lines on the other, are the of any other segments that the focus on social segmentation criteria that are used. Instead of media might miss? What about the LEGO targeting children, LEGO targets adults, with the core HOT CHOCOL demographic characteristics being individuals who Architecture microsite? are middle class, middle income and between the 2. How can LEGO ensure a smooth transition from how ages of 25 and 40. Behavioural and psychological parents and children Interact with the Duplo range to segmentation criteria are used to understand the LEGO ranges targeted to older children? the needs of adults. The key value proposition that is provided by both the LEGO Duplo and 3. Apply the behavioural and psychological LEGO Architecture microsites is information. The segmentation criteria presented In this chapter to information on the LEGO Duplo microsite details the LEGO Duplo and LEGO Architecture product how the building bricks can be used to support child lines. Which criteria are the same for both development, with text boxes providing information product lines, and which are different? to parents about general child development in the 4. Who buys LEGO Duplo and LEGO Architecture first five years of their child's life, and shows how LEGO Duplo can contribute to this development products? When and why do they buy LEGO Duplo using colours, shapes and language. LEGO also and LEGO Architecture products? Using your underlines on the Duplo microsite how building answer to question 3, discuss whether LEGO Is with the bricks can improve fine motor skills and using the right segmentation criteria to target customers. provide a way for children to express themselves and use their imagination; to support this, most LEGO Duplo products do not contain an instruction This case study was written by Robert Ormrod, booklet. The value provided on the LEGO Architecture Associate Professor, Aarhus University. blind of microsite for customers consists of information about the buildings themselves-the architect, the building and its history-together with details of the process through which a LEGO Architecture model References s developed and realized. The material in the case has been drawn from a variety of published sources
