epic product battles of history: lego vs gi joe
DESCRIPTION
This session is about the epic fight about 2 very different products in the same market space. One was "a product looking for a theme", while the other was "a theme looking for a product". In a UFC (Ultimate Fighting Champion) format, their begins, their struggles, their "Pros and Cons" and their outcomes are good fables for all PMs to reflect on.TRANSCRIPT
Epic Product
Battles of History:
vs.
By 1st Lieutenant Alejandro Perez
Agenda
• Speaker Introduction
• Introduction of the Contenders
• The Fight: 4 Rounds
• Market Results
• Discussion
• Mental Exercise
Personal Intro
• Global MBA
• Major in Finance
• Major in Business Admin
• Minor in Military Science
• 11 Years in the US Army
• Leadership, QM, and Logistics
• 2 Years of Corporate
• BAE Systems, Inc.
• 2 Years in Entrepreneurship
• SPOTS Tracking Systems, Inc.
Introducing the Contenders
• In one corner! • On the Other Corner!
Introducing GI Joe
• The Transformation
• Multi Product Offering
• “Theme looking for Products”
• Marketing Strategy
GI Joe:
The Shorter (more cost effective) American Hero
• The Transformation (12” to 3 ¾”)
1964 to 1984 - 12” Action Figure 1982 to Now – 3 ¾” Action Figure
Reduced Costs
Increase in Quality
GI Joe:
The “2 Sided” American Hero
• Multi-Product Offering:
• Hasbro provides both the “Problems and the Solutions”.
The Nazis:
The Evil “Us vs Them” Mass Product Offering
• Multi-Product Nazi Offering:
• The Nazis provides both the “Problems and the Solutions”.
G.I. Joe:
The “Soul Searching” American Hero
• G.I. Joe is a “Theme looking for a product”.
• Highly one dimensional theme: G.I. Joe vs. Cobra
• Only minor modifications can be done to survive
• (EX: G.I Joe: Retaliation)
• It can grow stale
• What if World Peace is reached? Does the theme die?
GI Joe:
The Real “Marketing” American Hero
Product Offering Campaigns
• A Real American Hero (1982–1994)
• Stars & Stripes Forever – TRU Exclusives (1997–1998)
• A Real American Hero Collection (2000–2002)
• G.I. Joe vs Cobra (2002–2005)
• Direct to Consumer (DTC) (2005–2006)
• 25th Anniversary (2007–2009)
• The Rise of Cobra (2009)
• The Pursuit of Cobra (2010–2011)
• 30th Anniversary (2011–2012)
• Retaliation (2012)
Supplementary Offerings
• Comics
• Cartoon
• Film
• Video games
Summary: GI Joe
• The Transformation
• Multi Product Offering
• “Theme looking for Products”
• Marketing Strategy
Introducing Lego
• Modularity
• The Mutable Product Offering
• “Products Looking for Themes”
• Marketing Strategy
Lego Modular Maniacs!
• Modularity
• Standardization for Configuration
• Do it yourself
• IKEA style
Standardization reduced Costs
No Assembly reduces Costs
Lego Mutant Maniacs!
• The Mutant Value Proposition
• Modularity can lead to:
• Self Explorative Value Position
• Customer Define Value Position
Standardization leads to Modularity
Modularity increases Value Position
Lego Rip-off Maniacs!
• “Products Looking for Themes”.
• It does not compete on Quality, but the replication of their
modularity on different themes.
Lego Marketing Maniacs!
• Licensed themes
• Robotics sets
• Video games
• Official website
• Business consultancy
• Theme parks
• Retail stores
• Children's clothes
• Board games
• Films and television
• Books and magazines
Summary: Lego
• Modularity
• The Mutable Product Offering
• “Products Looking for Themes”
• Marketing Strategy
Round 1! Fight!!
• Ding, Ding, Ding!
Transformation vs. Modularization
• G.I. Joe wins the 1st Round
• Quality and Cost Reduction.
• Modularity is Clunky and can
be Problematic.
Round 2! Fight!!
• Ding, Ding, Ding!
Multi Product vs. Mutable Product Offering
• Lego wins the 2nd Round
• G.I. Joe cannot mutate its VP.
• Modularity allows multiple
variations in the Value
Proposition
Round 3! Fight!!
• Ding, Ding, Ding!
Theme to Product vs. Product to Theme
• Lego wins the 3rd Round
• G.I. Joe has a very constant themes and thus a limited audience.
• Modularity allows for theme changes and explore new markets.
Round 4! Fight!!
• Ding, Ding, Ding!
Marketing vs. Marketing
• Lego wins the 4th Round
• Close call, however:
• Lego has more market presence
due to its efforts.
What do the Judges say?
$2.5 Billion $18.7 Billion
Lego Wins!
Discussion
• Lessons Learned
• Opinions
• Thoughts
Mental Exercise
vs.