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.