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 LEGO Company / LEGO Direct / 1858
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Subject: 
Target market
Newsgroups: 
lugnet.lego.direct
Date: 
Sat, 10 Feb 2001 18:35:28 GMT
Viewed: 
626 times
  
In lugnet.lego.direct, John Neal writes:
lol  Richard, Richard, are *YOU* listening?  AFOLs are not their market!
[...]

John,
I snipped a lot of stuff, including where you talked about an AFOL:KABOB
ratio, so I get what you're saying, but I want to focus on the above.

Richard was making a point about the secondary market and bulk offerings.
That's basically AFOL territory that TLC is currently not capitalizing on.
It's impossible to know how much money is being lost, but I'd speculate that
it's far less than how much is being lost by not capitalizing on ways to sell
bulk to kids.

Where it can become confusing is things like this...

   http://www.lego.com/info/pressspecific.asp?PressReleaseId=163&Year=2001

...wherein it's mentioned that "There appears to be no uper age limit for
the popularity of LEGO MINDSTORMS.  Around half the owners of these sets are
adults between the ages of 25 and 45."

And things like this...

   http://news.lugnet.com/general/?n=11596

...wherein it's mentioned that "the LEGO Company asks to open a dialogue with
you, our consumers. Whether you are an AFOL, or a parent purchasing a first
DUPLO set, or a KABOB (Kid with a Bunch of Bricks - we just made that up),
here are some words that should gladden your hearts: We are listening. And
more than that, we will endeavor to be very responsive to your needs and
desires."

From statements like those (and there are other examples), I think it's
perfectly reasonable to conclude that AFOLs are indeed part of TLC's market.
But just *how big* a part?  How important relative to kids?  I don't think
TLC has ever really said definitively (as in straight from the horse's mouth,
in a press release or annual report, for example), but I think we can still
draw conclusions.  The conclusion I draw from all available evidence is that
TLC still markets primarily to children but wants to very gradually expand
that to include teens and adults.

What we need here is a year-by-year pie chart showing the percentages of
product going to various age ranges.  Only LEGO knows that info and I doubt
they'd share it (for competitive reasons), but I'll bet you that the segments
containing age ranges 20+ are on the rise -- gradually -- over the past 10
years.

And that's good.

--Todd



Message has 2 Replies:
  Re: Target market
 
(...) Yes, the $64 question. (...) I agree completely. And I think LD's offerings will reflect that. I would love to see the stats on who is primary purchaser of the bulk offerings. I would bet that an impressive share is AFOLs. (...) Without a (...) (24 years ago, 10-Feb-01, to lugnet.lego.direct)
  Re: Target market
 
(...) The AFOL market is for sets and for bulk parts. Sets are currently available in multiple venues. I don't see that changing soon. LD is taking small steps into the bulk parts market. I'm still curious to see how far they will take that. "Every (...) (24 years ago, 10-Feb-01, to lugnet.lego.direct)

Message is in Reply To:
  Re: 6769 Fort Legoredo on sale at Shop At Home!!
 
(...) lol Richard, Richard, are *YOU* listening? AFOLs are not their market! Why can't you *understand* that? How arrogant and ignorant of you to imply that you would know their business better than they do! For every AFOL, there are 1,000s of (...) (24 years ago, 10-Feb-01, to lugnet.lego.direct)

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