Subject:
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Marketing Strategy
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Newsgroups:
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lugnet.dear-lego
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Date:
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Wed, 30 May 2001 02:50:10 GMT
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Viewed:
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2055 times
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I understand that TLC has performed less than stellarly of late and I have
to wonder if their current strategies may be a contributing factor.
K-Mart and the other chain stores seem to be marking down a large amount of
Star Wars stuff of late. Did TLC overproduce(like every other licensee)?
Frankly, the packaging on the larger sets is abysmal- no where near strong
enough to stand up to customer abuse. It looks like most have been opened,
leaving anyone with real doubts about their completeness. The "Technic"
sets in this line are of limited interest to me as there are few
conventional technic parts for the cost (even when discounted). There are
some "specialty parts" of interest in these and the "Roboriders" (and
Throwbots), but not enough to prompt mass purchases.
It does seem that TLC has a number of diverging lines going on now. The
"Classic" Lego line continues. Technic seems to be diluted with little
"Classic" Technic coming out while the line goes off into Throwbots,
Roboriders, Bionicles, etc. Some of the Star Wars stuff falls into this
"borderline" category. I can understand that TLC may be trying to broaden
their appeal but none of these efforts seem to have been very successful.
My own kids (9 and 5) are far more interested in the Classic Lego approach -
Castles remaining a biggie along with the "imaginary world" where all themes
are intermixed. Classic Technic stuff remains interesting - naturally
transitioning into and overlapping Robotics. Current large Technic sets
seem to be diverging from the original approach with tubing, axles and such
taking the place of beams and plates.
Which leads me back to MY more immediate area of interest - Mindstorms. I
do not understand the current Market pricing on Mindstorms. I doubt TLC
planned the current situation, but I find it illogical and cannot really
make logical "value" recommendations to parents or kids interested in this line.
The Droid Development Kit is $39 at SAH, $29 at TRU and other stores while
the Darkside Development Kit remains at $99 (or even $109). This disparity
is irrational with one set going for less than my perceived value and the
other for more. I - and anyone familiar with this situation - is sitting on
the sidelines waiting for prices to drop on the Darkside sets. I haven't
seen ANY of these kits move off shelves at the 2 local TRU's in months (I
can recognize the individual boxes). Given that the Robotics Development
Set is now $99 (down from $149), the same price for Darkside seems even more
illogical. The Development Set strikes me as a real value in introductory
robotics. The Robotics Invention sets have seen a $30 price cut but are
still pricey for a casual purchase at $199 (again though, I think this is a
great "more advanced" robotics set). Nonetheless, the RCX itself remains
comparatively overpriced at $129.
The expansion sets have always struck me as substantially overpriced -
limited additional parts for the price. I think assortments of Technic
beams and plates, wheels, and other assortments would be great supplemental
sets. I suspect that the clearance on ZNAPS put a serious dent in the
market for motors (at least for the moderately knowledgeable) for a year or
two. Motor kits priced at $39 (or more) are not moving. The chain stores
have cleared most out and they sit collecting dust in independent stores.
I really think that the Mindstorms Line has real - and unrealized -
potential in the education and high end "educational toy" market. It needs
support with a wider variety of parts available - my approach in buying old
Technic sets is not really viable for most people.
Just as a note - Over the past two years I've built up an inventory for
teaching that includes 16 microscouts, 6 scouts and 6 RCX's - most from full
sets. I've been helping obtain items for the local Middle School Tech class
- that accounts for another 8 microscouts and 4 scouts. As a comment on
market economics, my recent purchases have been as follows:
the Droid Development Kits are being obtained for the $29 price found at TRU
and elsewhere.
A few Darkside Development Kits have been obtained for $60-$75 (incl.
shipping) Generally speaking, kids think these are "cooler" than the DDK's,
but not $70 worth cooler.
Robotic Development Sets have been obtained for as low as $50 (incl.
shipping) though $80 or so is more common. These have really been a huge hit
in the Middle school. TLC is making a BIG mistake in not marketing these
through DACTA as a first level robotics experience. They avoid the whole
programming issue and let kids build confidence and understanding in
actually building robots before moving on to programming.
RIS sets have been bought for $150.
I suspect that a reasonable market price for microscout sets would be $39,
RDS is reasonable at $99, better at $79 and the RIS would do far better at
$149 or $179 instead of $199. "Perception" is a factor - $179 is alot less
than $200 to some. Anyway, this is my opinion. I suspect that if TLC
marketed this range to schools for classroom use and then made "special
offers" available to students, they'd sell far more sets. The classroom
experience helps kids overcome their wariness, and creates (in some, not
all) a desire to do more.
I'd hate to see such a great line die due to mismarketing.
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