Subject:
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Re: Fed UP!!!!!!!!
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Newsgroups:
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lugnet.market.theory
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Date:
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Wed, 21 Jul 2004 02:36:02 GMT
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Viewed:
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3704 times
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In lugnet.market.theory, J. Spencer Rezkalla wrote:
> All the evidence I can find points to the fact that we are not nearly as
> financially important to TLC as we want to think.
>
> I also want to make a point that just because AFOLs are not a major portion of
> Lego's customer base does that mean that Lego doesn't care about us as
> customers. Again there is plenty of evidence to the contrary: ISD, Santa Fe,
> bulk packs, etc. Lego is more than willing to help us out, but there has to be a
> business case to do it. Now is that really unreasonable?
The big business case, it seems to me, is not our personal volume, but our
influence on others by our activities. To pick just one example...
How much is a 3 minute spot on a local morning newscast (in Detroit, say),
extolling the virtues of LEGO and exhorting people to come to a show to see it
in action, worth? I'd venture it's "worth" more than the total margin on sales
to all the AFOLs (overt or sleeper or whatever) in Michigan (say) for a week (or
even a month), in terms of building brand awareness.
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Message has 1 Reply:
 | | Re: Fed UP!!!!!!!!
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| (...) Certainly. Three minutes of free TV advertising isn't cheap in any market - even Detroit hehe. But I have to wonder if our train shows really have a positive effect on Lego sales. No doubt people love the layouts, but on some level I think it (...) (20 years ago, 21-Jul-04, to lugnet.market.theory)
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Message is in Reply To:
| | Re: Fed UP!!!!!!!!
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| (...) Lego revenue in 2002 was reported to be $1.6 billion. 5% of revenue is $80 million. You can play up a lot of scenarios with various AFOL numbers, but you'll find it takes a lot of buyers to reasonably account for $80 million in yearly sales. (...) (20 years ago, 21-Jul-04, to lugnet.market.theory)
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