Targeted at children between the ages of six and 12 years, and priced at Rs 435 onwards, the range will include X-Wing Fighters, Snowspeeders, TIE Fighters. The Star Wars merchandise will be heavily promoted by Lego through its tested route: events and promotions.

Making an aggressive play for the Indian toys market, the Denmark-based toy major has lined up many more new products for Indian play-pens over the next four months. September, for example, will see the launch of the Lego Duoply range which is targeted at children in the two-five-year-group, and includes Disney characters such as Winnie the Pooh, Tigger, Piglet and Eeyore. TheDisney range will be priced at Rs 744 onwards.

Then, buoyed by the success of its doll Lego Scala -- launched in India early this year -- Lego plans to expand the range for girls with the launch of Lego Belville and Lego Paradisa in August 1999. Targeted at five to 12-year old girls, the dolls will be priced at Rs 184 and Rs 81 onwards, respectively. Scala is being offered at 40 per cent less than the international price and the nine Scala dolls retail from Rs 451 to Rs 2,999.

While refusing to share sales figures, Karin Pedersen, manager, EAC Trading Pvt Ltd., the Danish company which has been appointed as exclusive distributor of Lego toys in India, says: ``Scala sales in India already account for 10 per cent of the company's turnover from India.''

The company does not intend to lower its prices, which it admits are very high, though it will continue to launch promotional items. A strategy introduced for the first time in 1997 when the two promotional buckets positioned as `value for money' weredeveloped specifically for India.

As per Pedersen , the buckets sold very well and gave the company a lot of positive feedback from consumers. Extending that strategy, Lego will now promote two products -- Lego Rally Racer from its Lego Town range and Time Cruiser as part of the monsoon launches. Priced at Rs 603 and Rs 231-Rs 1,947, these says Pedersen are 40 per cent cheaper than the international price.

In India, Lego targets the `very rich' which accounts for 1.2 million households and the `consuming class' which accounts for 36.8 million households. While the big and expensive Lego sets are bought by the very rich, the consuming class are willing to buy the product when they can see the value of the product.

Since the company does not do mass advertising -- ``The core value of the brand can't be explained through a 20-30 second TV commercial,'' says Pedersen -- Lego prefers explaining the value of the product directly to the consumer through brand-building activities in retail outlets, schools andkindergartens. ``It helps to get our product out and build awareness,'' says Pedersen.

Later this year, Lego also plans to launch its IT-related, and hi-tech play tools which includes Lego CD-ROMs (Rs 1,500); Cybermaster (Rs 14,000-Rs 16,000) and MindStorm Robotics (Rs 16,000). The company is currently talking to NIIT for a possible tie-up to use this range as a learning aid. Lego plans to set up a special helpline for this range.

The company is getting aggressive on the retail front too: the hi-tech range for example, will only be sold through air-conditioned stores. ``Retail development is moving fast in India and we have to catch up with it. In India the challenge is that retailers are spread over 24 states -- in a geographical area the same size as Europe,'' says Pedersen.

So far the company has spread its reach to cities like Bombay, Bangalore, Hyderabad, Pune, Indore, Ahmedabad and Chennai, through about 100 large department retail outlets including Shoppers Stop, Westside, and Crossroads.

InDelhi, where it launched its products in October 1998, it plans to step up promotions in the current season. It also plans to open an exclusive counter at Big Jos, a premium department store in the Capital, by Diwali. For a better display of its products, the company is at present importing fixtures from Denmark and training dealers/retailers on product display, nationally.

As for its market share, the company remains mum. ``We don't think we are competing only in the existing toy market, we are building a new segment. We define the scope of our market in broader way so we are competing for the child's time and the households budget.''

The Indian chapter, says Pedersen has not begun to make profits as yet but hopes to do so by next year. ``Toys are not fast moving goods, It's not Coke or Pepsi. But we believe in India and we're willing to be patient.'' Unlike their core consumers: children.