Lego

Part
01
of two
Part
01

Lego Comp Analysis 1

GoldieBlox and Build & Imagine are STEM-focused construction toy industry disruptors that compete with LEGO. The STEM (science, technology, engineering, math) movement is a disrupting force in the toy industry right now. LEGO is actively pursuing the STEM toy market, making these two newcomer directly competitive. According to Euromonitor, the global child development toy market is expected to reach almost $40 billion by 2019, and 76 percent of that figure is related to STEM-focused toys.

Since Lego was covered in our previous competitive landscape on traditional competitors, I will focus on compiling the requested data for GoldieBlox and Build & Imagine.

BRIEF OVERVIEW

• GoldieBlox
GoldieBlox is a startup toy company that makes STEM-inspired construction toys targeting young girls. Launched by engineer Debbie Sterling in 2012, GoldieBlox is offers award-winning multimedia "toys, books, apps, videos, animation and merchandise" that integrate STEM and storytelling to inspire girls. The company has won numerous awards, including Toy of the Year from the Toy Industry Association, iOS App of the Year from Apple, and Toy of the Year from Parents Magazine.

• Build & Imagine
Founded by marketer Laurie Peterson, Build & Imagine makes STEM-focused, magnetic dollhouse building sets that allow young girls to develop "foundational STEM skills like spatial reasoning, problem solving, and design." The company has won over 30 awards, including the title "Rising Star Toy Inventor of the Year" for Peterson. Their Malia's House toy competed directly with LEGO for the Construction Toy of the Year award.

MEDIA TACTICS

• GoldieBlox
After a successful launch in Kickstarter, GoldieBlox's marketing efforts began with a two-minute viral video that drove excitement for the product. Today, the company has an in-house advertising agency called Goldie Studios that continues to use this viral strategy with videos such as "GoldieBlox vs. The Big Sister Machine" and "Fast-Forward Girls 2015." Chief Marketing Officer Kenny Davis was hired from competitor Hasbro.

In 2014, GoldieBlox won the Intuit's coveted "Small Business, Big Game" contest and with it a 30-second Super Bowl ad worth $4 million. Their YouTube channel features video series, including "Hack Along DIY’s With Goldie," featuring a golden-haired tween girl, and "Scrappy Robots with Simone Giertz."

While no solid advertising spend figures are publicly available, CMO Kenny Davis notes that the company focuses on investing in "non-media," such as YouTube, rather than traditional advertising. Developing content that will drive engagement has been successful for them.

Their advertising and products are very strong on diversity. In addition to the golden-haired GoldieBlox character, Ruby Rails is an African-American girl who is a coding whiz. Hispanic engineer Valentina Voltz and physics genius Li Gravity also joined the line up.

• Build & Imagine
According to Peterson, the company does not have a big advertising budget, so they focus on more organic marketing methods. The company has hundreds of five star Amazon reviews, averaging five stars for their most popular toy. Instead of investing in advertising, they
"double downed on product quality." According to a Net Promoter Score survey, 73% of Build & Imagine's customers were 'extremely likely' to recommend the products to a friend, a score that is on par with the top brands, globally. Their goal is to drive customer loyalty, which will in turn drive sales. Build & Imagine StoryWalls customer ratings are higher than its competitors, including GoldieBlox.

MOST POPULAR PRODUCTS

• GoldieBlox
The GoldieBlox online store does not sort their products according to popularity. However, on Amazon, the top GoldieBlox toys by customer ratings appear to be GoldieBlox and the Dunk Tank, GoldieBlox and The Spinning Machine, GoldieBlox and the Parade Float, GoldieBlox and the Builder's Survival Kit, GoldieBlox Girl Inventor Zipline Action Figure, and GoldieBlox Craft-Struction Box.

• Build & Imagine
Malia’s House is their most popular toy, both at their online store and on Amazon. Marine Rescue enter, Day at the Beach, and Pet Portrait Studio are also popular choices at the online store.

STRENGTHS AND WEAKNESSES

• GoldieBlox
GoldieBlox is bolstered by its early success and recognition by the Intuit competition that led to the Super Bowl ad, as well as industry awards and honors. According to a CNBC article, in the two years after the Super Bowl ad, GoldieBlox saw its sales increase 7,000% and went from under 1,000 retailers to over 8,000. With $15.1 million from three venture funding rounds, the company has an estimated $6.8 million in revenue.

I found no particular weaknesses for GoldieBlox, but with the increasing interest in STEM toys, they will likely face more competition in the future.

• Build & Imagine
In 2017, Build & Imagine was granted a US utility patent to protect its magnetic dollhouse building panels, which strengthens its place in the toy industry. According to Peterson, this patent has prevented competitors from creating knockoffs of her design. Even so, other companies are attempting to create look-alike products that use the Build & Image concept to create alternative products, creating competition that dilutes the brand and threatens revenue.

While Build & Imagine has had a strong start with a lot of positive press and award recognition, it is still a relatively young company, having been founded in 2013. It has had two funding rounds, totaling $1 million, but remains at the seed stage. However, it appears Peterson has consciously chosen not to pursue venture capital funding, which she discusses in a Fast Company article.

AUDIO PROGRAMS

• GoldieBlox
Other than their YouTube channel, I found no audio programs such as podcasts or radio.

• Build & Imagine
I found no evidence of audio programming of any kind for Build & Imagine.

CONCLUSION

In conclusion, GoldieBlox and Build & Imagine are toy industry disruptors that compete directly with LEGO with their STEM- and girl-focused products.
Part
02
of two
Part
02

Lego Comp Analysis 2


LEGO's traditional competitors in the United States have been identified as Mattel Inc. and Hasbro. Hence, we have prepared a competitive landscape for LEGO and these two major traditional competitors. We have compared them in terms of their media tactics and how much they spend on advertising, their strengths and weaknesses, their popular products and their audio programs if available.

Methodology

In identifying LEGO's competitors, we searched for the top players in the United States toy market by revenue. LEGO was listed in second place. We further streamlined the list based on companies that manufacture children's toys as LEGO (traditional companies). The final list included Mattel Inc., 1st place and Hasbro, 3rd place in the list of top players In the United States. To provide more backing, this article has reported that Hasbro and LEGO are both struggling "to stay on top of the $49 billion global toy market."

Therefore, we have identified Mattel Inc. and Hasbro as LEGO's major traditional competitors in the United States.

See our findings below.

Lego's competitive landscape

Media Tactics and expenditure

1. LEGO

"Most of the Lego’s promotional efforts have been centered around social media, wherein the brand encourages interaction and user-generated contents." The brand has peaked 2 million subscribers on YouTube, 1.16 million likes on Facebook, 3.5 million views, 953 posts, 1.6 million followers, likes per post per page ranging 15k-90k on Instagram and 46.6 thousand followers on Pinterest.

We could not get the amount LEGO spent on advertising between 2016 and now as per Wonder's standards on the public domain, but a source from 2013 shows that it was $257 million.

2. Mattel Inc.

Mattel Inc. has leveraged "TV advertisements, magazines, newspaper and other social media sites." It looks to partner with other brands to advertise the line of products and brands. It has also utilized sponsorship agreements to showcase their products too.

Mattel Inc. has spent $394 million on advertisement.

3. Hasbro

"Hasbro uses all media types for advertisement. The slogan "Boy Oh Boy! It's A Hasbro Toy!" became a popular hit in advertisements." It has allied with popular channels and movies like Jurassic Park, Barney etc. for advertisements.
We could not get the amount LEGO spent on advertising between 2016 and now as per Wonder's standards on the public domain but we saw that it was $218.5 million in 2012.

List of popular products

1. LEGO

LEGO Star Wars is the most popular product. Others include the LEGO Ninjago series.
2. Mattel Inc.
Barbie (the most popular fashion doll), Hot Wheels, Monster High, American Girl, and Thomas & Friends.

3. Hasbro
PLAY DOH and Nerf.

Strengths and weaknesses

1. LEGO
LEGO's strengths include:
i. Their target of skill enhancements of children through their educational features.
ii. Their presence in over 55 countries which has established them as a strong brand name.
iii. Their theme parks becoming very famous tourist sites.
v. Their shift into video games, TVCs, and robust advertising.

Some weaknesses include that they have lost their market share to the emergence of video games and some limitations of products and brand name.

2. Mattel Inc.
Strengths include:
i. Their brand stands as the "largest toy company in the world"
ii. Their brand recall is high
iii. Their quality and effective management with about 30,000 employees.
iv. Their line of top brands of dolls like Barbie doll.
v. Their "strong financial position compared to other competition with a wide global reach".
vi. Their extensive branding and advertising through TVCs and online presence.
Weaknesses include their being involved in "controversies like toxic toys" which affect their image, and availability of fake products which leads them to a loss in revenue.

3. Hasbro
Hasbro's strengths include:
iii. Their exclusive license to toys like Star Wars.
iv. Their strong performance in international markets.

Weaknesses include their "poor working conditions in their Chinese manufacturing units" and their inability to distribute their products themselves, relying on other media.

Availability of audio programs

1. LEGO
Lego offer logo podcasts

2. Mattel Inc.
Mattel has also launched its audio device in January 2018.

3. Hasbro
Hasbro offers battery operated radio and musical toys.

Conclusion

To wrap up, we have prepared a competitive landscape of LEGO's major traditional competitors, Mattel Inc. and Hasbro. We have compared them with LEGO in terms of media tactics and how much spent on advertising, a list of their popular products, strengths, and weaknesses, and finally, if they offer any audio programs.
Sources
Sources

From Part 01