Subject:
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Re: What 5% ? (was Re: Fed UP!!!!!!!!)
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Newsgroups:
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lugnet.color
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Date:
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Sat, 31 Jul 2004 06:31:41 GMT
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Highlighted:
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(details)
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In lugnet.color, Justin Pratt wrote:
> > *****
> > One thing I would like clarified, that Jake nor anyone at TLC seems to have
> > done - are we 5% of the {customers} or 5% of TLC's {income}?
> > *****
>
> Either way AFOLs are still a tiny minority.
*Either* way? Now that's just silly.
If AFOL's were 5% of the customers (granted, they aren't), and your typical AFOL
buys 20 times as much annually as a typical child's parents (not an overly bad
estimate, I think), then we're about 51% of sales.
x as much | % of sales
==========|============
1 | 5.0%
2 | 9.5%
5 | 20.8%
10 | 34.5%
15 | 44.1%
20 | 51.3%
25 | 56.8%
30 | 61.2%
35 | 64.8%
40 | 67.8%
45 | 70.3%
50 | 72.5%
Even at 20% of the sales, that's hardly a neglectable nor 'tiny' minority. Heck,
even 5% or 10% isn't easily neglectable. I mean, sure, they're not your *FOCUS*,
and if your only possible choice is to neglect one group or the other, well, uh,
sure, you'll opt to please the larger group. But seriously, you're going to TRY
and please both groups as much as possible.
But, that said, we're nowhere near the population of Lego's target audience.
From www.prb.org, I'd guess there's about 200-250 million kids in Lego's target
audience (kids in more developed countries), which means in order to be 5% of
the customer base, we'd need bare minimum 10 million AFOL's. And I'd guess we're
ballpark 10,000-50,000. I'd be suprised (pleasantly so, I guess) to find out we
were over 100,000.
Also, on the "5%". What's the exact quotes that have been used to throw around
the number "5"? My own best guesses put us at around 1 or 2 percent of the total
income-- Have they said "less than 5%" or "no more than 5%", or have they
actually given us such a statistic as "you guys are about 5% of sales"?
DaveE
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Message is in Reply To:
 | | Re: What 5% ? (was Re: Fed UP!!!!!!!!)
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| (...) Yes, they lost money in 2003. Yes, this is bad. No, AFOLs still don't count. From the 2003 Lego Annual Report: "At the end of 2004, it was decided to change the business strategy and set out a series of specific intiatives in order to ensure a (...) (20 years ago, 30-Jul-04, to lugnet.color, FTX)
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