NEW BUSINESS PITCH. July 2017
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1 NEW BUSINESS PITCH July 2017
2 The Data You Need to Win This Pitch NAME BRAND PITCH TYPE MARKET DATE Lego Puts Global Media Assignment In Review Media Global June 6, 2017 DESCRIPTION The LEGO Group is launching a multi-market media agency review. Publicis Groupe's Starcom has handled the toy giant's account in the U.S. since Dentsu Aegis' Carat has been responsible for most of the client's European media business since then. It s expected that both will participate in the review. The toy marketer spent about $85 million in the U.S. (its biggest market) on ads last year, according to Kantar Media. That was up sharply from the previous year, when it spent about $50 million, per Kantar. Global figures weren t immediately available.
3 Client Profile / Market COMPANY BACKGROUND FINANCIAL OVERVIEW - Source: AccessConfidential.com - LEGO Systems Inc. (LSI) is the Americas (North America and Latin America) division of the LEGO Group, a privately-held firm based in Billund, Denmark. The LEGO Group is committed to the development of children's creative and imaginative abilities through high-quality, creatively educational play materials, and its employees are guided by the motto adopted in the 1930s by founder Ole Kirk Christiansen: "Only the best is good enough." 2016 Sales (mil) 2016 Employees Employee Growth Percent Assets (mil) Net Income Growth Percent Sales Growth Percent 17,310 30, DECISION MAKERS by MAIN COMPETITORS Ms. Heidi Bailey Senior Marketing Manager Ms. Julia Goldin Chief Marketing Officer heidi.bailey@lego.com julia.goldin@lego.com
4 U.S. Toys Industry U.S. TOYS MARKET SIZE $20.36 BN MARKET GROWTH +5% U.S. GLOBAL ANNUAL IMPORTS OF TOYS $19.3 BN U.S. GLOBAL ANNUAL EXPORTS OF TOYS $2.5 BN
5 Fast Food Market industry Segments in numbers Sales of Outdoor & Sports Toys in the U.S. T O P S E G M E N T S b y SALES Infant/Toddler/Preschool Toys in the U.S. Dolls sales in the U.S. $1.44 USD $3.2 USD $2.88 USD T O P S E G M E N T S b y G R O W T H P E R C E N T A G E Games/Puzzles Outdoor & Sports Toys Dolls 18% 10% 10%
6 Fast Food Parents industry and in Toys numbers Toy purchasers are most likely buying for kids under the age of 12 48% E L E C T R O N I C 53% playing with traditional toys is more important for child development than playing with electronic toys T O Y S 29% believe electronic toys are more important for child development 30% of adults purchased toys and games for an older child 40% Parents with kids ages are the most likely to find value in electronic toys 57% parents with kids under the age of five prefer traditional toys
7 Adults and Toys 63% American shoppers agree that toys aren t just for kids; they can be for adults, too. 21% CARD OR BOARD GAMES T O P T O Y S T Y P E S F O R A D U L T S 19% ARTS & CRAFTS 17% PUZZLES 22% US consumers purchased a toy or game for themselves. 56% BOUGHT TO MOTIVATE FUN R E A S O N S T O B U Y 31% BOUGHT JUST TO HAVE A LAUGH
8 Fast Parents Food industry Purchase in Drivers numbers 76% toys that allow the child to have fun M O S T P O P U L A R T O Y S F O R K I D S 52% toys that encourage creativity 38% toys and games that promote physical activity 35% ARTS & CRAFTS 33% BUILDING SETS 34% toys that promote motor skills 35% toys that promote cognitive skills 30% STUFFED ANIMALS 30% TOY VEHICLES
9 Fast Food industry Lego in numbers $5.78BN REVENUES IN 2016 Total LEGO elements sold per year LEGO tyres produces per year 2016 > 75 Billion > 730 million +6% REVENUES GROWTH Number of colours used in production Number of different LEGO shapes Nationalities represented in the LEGO Group 67 3, ,836 EMPLOYEES IN 2016 Children reached through LEGO Foundation activities Children reached through Local Community Engagement 635,000 >100,000
10 Fast Food Lego industry group facts in numbers 52% toys that encourage creativity 38% toys and games that promote physical activity 34% toys that promote motor skills 35% toys that promote cognitive skills Lego baseplate was the element produced in the largest number 2.7 BN Moulded in 2016
11 LEGO Brands 335 New items launched in 2016 T O P F I V E S E L L I N G S E T S I N 2016 New launches account for 60% of sales to consumers
12 Blending Physical and Digital NEXO KNIGHTS HAS BEEN LAUNCHED IN FEBRUARY 2016: original theme that s underscored by a very boyish conflict setting strong memorable characters a TV show a companion digital app The glue that holds these 3 pillars together are scannable Nexo Shields which can be found in both digital and physical realms. Using the free Merlok 2.0 app (Downloadable on Google Play or ios), fans can scan Nexo Shields found on TV, webisodes, the LEGO.com website, LEGO Club Magazine, and of course the actual physical Shields included in LEGO sets to unlock Nexo Powers that power up the game contained in the Merlok 2.0 app. jaysbrickblog.com
13 Blending Physical and Digital In 2017, the company will introduce new platforms to further develop blended digital and physical play products. A social network specifically designed for kids under the age of 13 to safely interact and engage in all things Lego. A basic robotics- and programming-oriented kit that s supposed to be more playful than didactic. All ads shown are for Lego products. Boost is built around a motorized block called a Move Hub, powered by six AAA batteries and equipped with a tilt sensor. The app will also offer building challenges as a way to try and jump-start creativity in kids using the app, and new Lego sets will encourage kids to share pictures of their latest builds on Lego Life in the instruction manual. The accompanying app can be used on an OS or Android tablet, which is both a building guide and a drag-and-drop programming tool.
14 Fast Food LEGO industry Marketing numbers 2016 TRACKED MEDIA SPEND $86 Million Chevy ran a Lego-ized installment of its two-year-old TV campaign featuring real-people focus groups. Lego people were making depressing psychological assessments about what the Batmobile says about its driver T H E L E G O B A T M A N M O V I E The movie hit cinemas on February 2017 $53 M in its opening weekend A 60-second version generated 2.6 million organic views on YouTube, according to Gary Pascoe, chief creative officer, North America at Chevy lead agency Commonwealth/McCann. The brand collaborated with various properties like The Big Bang Theory, Cribs and Chevrolet, which used 344,000 Lego pieces to build its own Batmobile, displayed at the Detroit Auto Show
15 Fast Food LEGO s industry Audience in numbers M A L E A U D I E N C E (60.2%) F E M A L E A U D I E N C E (38.8%) YEARS OLD 26.3 % LIVING IN THE SOUTH 29 % HISPANICS 17 % MARRIED 50 % YEARS OLD 32 % HAS CHILDREN AT HOME 51.4 % TOP PSYCHOGRAPHICS TOP PSYCHOGRAPHICS NERDS GAMERS NETIZENS BEAUTY & WELLNESS AWARE MONEY SAVERS NETIZENS SEE THE FULL PROFILE SEE THE FULL PROFILE
16 GENERATION Z NERDS QUICK DEFINITION: Generation Z Nerds Male consumers interested in fast fashion brands like Zara, H&M and Topman. The term fast fashion refers to a phenomenon in the fashion industry whereby production processes are expedited in order to get new trends to the market as quickly and cheaply as possible. 100% 72% MALE 64% SINGLE 99% WITHOUT CHILDREN GAMERS 9.2 x NETIZENS 5.6 x 66% 33% TECHIES DESIGN LOVERS 2.2x 2.5 x
17 GENERATION Z NERDS: GAMING GAMING ATTITUDES Social Gamer Gamer Hardcore Gamers % Reads video game magazines 54% Visits gaming/ technology websites GET THE FULL PROFILE FAVORITE GAME GENRES FAVORITE GAMER RPG BEAT EM ALL GAMES STRATEGY GAMES SLYFOXHOUND
18 GENERATION Z NERDS ONLINE BEHAVIOR ATTITUDE 5.6x Always online Netizens 67.8% Visits online video channels GET THE FULL PROFILE MOBILE CENTRIC 39.6x 3.4x Mobile App Happy Rooster Teeth App
19 GENERATION Z NERDS: TECHNOLOGY TECHNOLOGY ATTITUDE 7.1 x TECHNO-GAMERS 6.5 x TECH-SPLORERS TECH INTEREST TRENDING TECH BRAND GET THE FULL PROFILE 13.5 x Computer Hardware ONEPLUS INTERACTION CHANGE +653%
20 GENERATION Z NERDS: ENTERTAINMENT ATTITUDE TRENDING TV SHOW 1.8x MOVIES LOVERS INTERACTION CHANGE (6 mo) +842% TV CONTENT TYPE MOVIE GENRES GET THE FULL PROFILE 5.04x 4.8x FAMILY ORIENTED SHOW HORROR MOVIES
21 CONSUMER INSIGHTS SUITE Discover LEGO s Target Consumer on Cubeyou Consumer Insights Suite TRY NOW FOR FREE >
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