LEGO: The Marketing Strategy Behind the Toy Industry Titan

lego marketing strategy

LEGO’s claim to fame goes well beyond its famous interlocking plastic bricks. Since its founding in 1932, LEGO has diversified into movies, video games, television shows, popular social media channels, and even major amusement parks. And despite how devastating the COVID-19 pandemic has been for many in the toy industries, LEGO’s sales  rose 14%  in the first half of 2020 compared to the same period in 2019, with its operating profit rising 11% to $622 million.

Much of this success is due to the LEGO marketing strategy, which embraces digitalization and emphasizes knowing its customer base. By staying true to the brand identity it established in its inception and merging it with modern marketing techniques, LEGO has managed to keep at the forefront of the competition. In this article, we’ll take a close look at the tactics and tools LEGO uses to market its products successfully, even during the current pandemic. 

Table of Contents

The history of LEGO

Analyzing the retail lego marketing strategy.

  • LEGO’s phenomenal market entry strategy
  • Licensing & merchandising mentality
  • Social media/content marketing strategy
  • Integrated customer experience which generates endless UGC
  • Strong partnerships with the education sector
  • Remains “parent-approved” at all costs
  • Analyzing LEGO’s eCommerce website
  • Analyzing LEGO’s Category Page
  • Analyzing LEGO’s Product Page
  • Analyzing LEGO’s Checkout Process
  • How LEGO could have increased its revenue by +1% with a single automation

Impressive LEGO stats you may not know

Play hard, like lego.

Founded by carpenter Ole Kirk Kristiansen, the LEGO Group remains a private, family-owned company based in Billund, Denmark. While Kristiansen originally produced wooden interlocking bricks, the company continued innovating and experimenting with new designs. Eventually, the traditional plastic LEGO brick was patented in 1958, offering a timeless design that endures to this day. Over the years, LEGO bricks have grown in popularity and have been named “Toy of the Century”—twice. 

lego history

Although the LEGO brick remains their trademark product, the company expanded into new ways of making toys and marketing during the 20th century. LEGO designed its new playsets to appeal to both boys and girls and released more complex products to challenge older children. Realizing their customer base now included children and adults from older, nostalgic generations, LEGO adjusted its marketing to communicate with its audiences. Lego had even been able to engage its existing customers to influence new product development and nurture an entirely new consumer base.

In the 21st century, LEGO remains a thriving, highly adaptable company. Although its core brand—offering its customers a way to develop their imagination and creativity through free play—remains the same, it continues to innovate by researching and adapting the LEGO marketing strategy to new digital communications. This mix of time-honored ideals and cutting-edge marketing enables them to adjust to societal changes and grow even through challenging times. 

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This growth is the result of six key factors in the overall LEGO marketing strategy. Thanks to the LEGO Group’s willingness to enter new marketplaces, diversify its merchandise, and embrace social media marketing, their product lines are better suited to adapt in beneficial ways. At the same time, LEGO knows what marketing strategies to always continue, from its educational partnerships and parent-safe brand, and how to use this to develop better customer relationships. 

Key marketing strategy #1: LEGO’s phenomenal market entry strategy

LEGO products are in 130 countries—but the company is always looking to expand its operations. When  LEGO set its sights on China , it entered the market by putting money into opening LEGO stores in major cities as well as cities that showed demand and interest for their products.

LEGO also studied the new market, not seeing a need to create any Asian-specific product lines as Chinese consumers already strongly valued the traditional LEGO creative play experience. On the other hand, they also acknowledged the advanced digitization in Chinese play that would require them to continue creating their own digital LEGO products.

This focused strategy paid off, as LEGO saw a 4% increase in profits and sales in 2018. As China continues to develop a very affluent middle-class numbering in the millions within the coming years, it represents a significant opportunity for LEGO and its market position. 

Key marketing strategy #2: Licensing & merchandising mentality

Diversification is an essential part of the LEGO marketing strategy. Aside from its multiple toy sets, it has also branched out into multiple mediums to promote its brand. 

The LEGO Movie  franchise and  The LEGO Batman Movie  raised the profiles of its licensed properties while celebrating LEGO’s philosophy of play .  LEGOLAND theme parks have opened in Billund, California, Florida, Malaysia, Dubai, Windsor, Japan, and Germany. And, seeing the movement toward digitization, it produced video games based on its product line.

lego batman movie

LEGO playsets also reflect the company’s focus on regular innovation. After research revealed most of their consumers were boys, LEGO developed their LEGO Friends line aimed explicitly at relating to girls. 

The company has also partnered with Disney, Marvel, and DC Comics to create its popular Star Wars and superhero-themed playsets—which are vital marketing tools since they generate publicity and drive higher sales. 

As both young and old LEGO enthusiasts enjoy displaying their skills as master LEGO builders, LEGO Group became involved in official TV show competitions such as  LEGO Masters  to build further awareness of their brand.  

Key marketing strategy #3: Social media/content marketing strategy 

While LEGO is already a well-known brand, its popularity on Facebook, Instagram, and YouTube highlight the effectiveness of using social media channels to engage with customers. LEGO’s Facebook page has well over 13 million followers and regularly updates the page with photos and videos of new LEGO releases and innovative creations. Their Instagram page offers similar content, and posts receive numerous likes and comments, showing excellent user engagement.

LEGO is also YouTube’s most popular  brand channel  as of June 2020, with 10.04 billion views. Their channel offers promotional, educational, and how-to videos that promote the company’s brand. Its popularity on social media has encouraged fans to create their own LEGO fan channels, such as “ Beyond the Brick ,” a YouTube channel with over 821,000 subscribers who promote additional awareness of LEGO’s brand independent of the company’s marketing efforts. 

Key marketing strategy #4: Integrated customer experience which generates endless UGC 

LEGO uses its digital platform to provide each segment of its consumer audience with an integrated customer experience. LEGO Life, a social network app aimed at children under 13, lets users share photos of what they made with LEGOs and leave comments on other people’s creations. The online community has over 10 million members, offering an effective way of increasing brand awareness by enabling younger audiences to engage through social media.

However, LEGO also has a sizeable adult consumer base who can join its LEGO Ideas online community and become part of its creative process. This community lets members share their LEGO creations’ images and offer proposals for new LEGO Ideas sets that members vote on for the company to produce. In 2017, journalist Maia Weinstock’s  “Women of NASA”  LEGO idea gained the necessary 10,000 votes from supporters, was produced, and became a top-selling product on Amazon. 

To put it simply : Throughout the everyday life of an average kid raised in advanced countries of the world, its parents, its teachers, and its friends will encourage it to play with LEGO. Moreover, if someone looks at its surroundings and its (social) networks as well, there is a tremendous amount of LEGO-related user-generated content which also continuously “validates” that this toy is, maybe, one of the healthiest, most educative, and most beneficial addictions of its life. This is something that no other brand has ever achieved.

The levels of passive and organic customer engagement LEGO has reached are out of this world and surely a case study for any brand, in any industry.

Key marketing strategy #5: Strong partnerships with the education sector

LEGO has always promoted its plastic bricks as educational toys that empower children to become imaginative, engaged learners through play. This brand extends to the overall company, which has established strong partnerships with the education industry. In 2020, the LEGO Foundation committed  $24 million in educational aid  for schools, foundations, and educational programs in multiple countries. 

lego hybrid learning

LEGO’s stand-alone education company,  LEGO Education , has been offering schools educational products since 1986. Its website currently offers many LEGO-based building products specifically designed to help students build STEAM (Science, Technology, Engineering, Art, and Math) confidence in primary and middle school. 

Other sections offer homeschool and distance learning resources for children learning during the pandemic. As LEGO’s commitment to education is well respected, educators are far more likely to see the value in these products and online resources.

Key marketing strategy #6: Remains “parent-approved” at all costs 

Although kids remain a key target audience for LEGO, the company also understands LEGO’s marketing strategy needs to appeal to their parents, who are the ultimate purchase maker. By continuing to promote the educational value of their toys and market them as a way to nurture a child’s interest in STEAM, LEGO ensures its products are “ parent-approved .” This approach incentivizes parents to keep buying, which’s been key to the LEGO marketing strategy from the start.

Analyzing LEGO’s eCommerce website

LEGO’s main eCommerce website offers many outstanding features in its category, product, and checkout process pages. Here’s our assessment for what we liked best—and what we didn’t. 

Analyzing LEGO’s Category Page

lego category page

What we liked:

  • Detailed mega drop-downs : Provided plenty of options for visitors to get to product pages by theme or interest.
  • Filter navigation useful:  “Shop By” drop-down has options to search by age, price, popularity, or even product type, which would be useful when gift-shopping.
  • Mobile phone friendly : Drop-downs could be seen and used easily on smartphones and mobile devices.

What we didn’t:

  • Ads crowd filter navigation:  Promoted LEGO products continue to show up on the screen while using the filter function, making it challenging to separate desired from undesired items.

Analyzing LEGO’s Product Page

lego product page

  • Easy to navigate:  Each page could be easily scanned simply by scrolling down.
  • Excellent ad copy : Very detailed descriptions of each playset, game, and toy. Copy also did not simply repeat boilerplate text from the Category Page.
  • Excellent product images : Customers get all the LEGO product images they need, including the box, figurines, and even display options. Images come with zoom views and 360 rotating views.
  • Product reviews:  Multiple written reviews and ratings accompany most products, helping consumers get a sense of past customer satisfaction.
  • Images harder to navigate through on mobile devices:  Photos harder to zoom in and out of on a touchscreen. The zoom function also did not work when the computer screen was minimized.
  • Delivery charges not on the product page:  Delivery charges are not included on the product pages. Currently, it only offers free shipping and express shipping.

Analyzing LEGO’s Checkout Process

lego checkout page

  • Guest checkout option:  New customers can check out as guests without becoming members, a step that increases the risk of checkout abandonment .
  • Multiple payment options:  Customers can pay with multiple credit cards or PayPal.

lego marketing case study

  • Shipping costs hidden until after information is submitted:  Customers need to submit their addresses before seeing the cost for express and express saver shipping.
  • Holiday delivery delay not specified:  Customers are encouraged to order gifts early to avoid holiday delays, but LEGO does not specify how early gifts should be ordered for on-time Delivery.

How LEGO could have increased its online revenue by +1% with a single automation

Adding a benefit-driven exit-intent pop up on checkout..

Based on our platform’s data, during 2020 we’ve seen that a benefit-driven exit-intent pop up on the checkout process had a median conversion rate of 1.47%. This percentage actually also represents the recovery rate of this tactic. During our tests, we didn’t detect such a tactic at Lego’s website. So, a brand like LEGO could further increase its revenue, on average, from this automation alone. But how big would the impact be? 

Let’s write the numbers down:

  • LEGO’s revenue in 2019 was $531.2 million US dollars   
  • During the pandemic the company’s sales rose by +14%, resulting in ~605 million US dollars approx.
  • Even if LEGO achieved a recovery rate of 1% from the benefit-driven exit intent pop up strategy, this means that its additional turnover would be around 6 million US dollars.

Why 1%? 

Because we know it works. We’ve seen this tactic working for far smaller and less famous brands than LEGO. So, we strongly believe that a brand with so much content and such brand prestige as LEGO, will surely achieve an even higher conversion rate than 1.47%.

How to setup a benefit-driven Exit-Intent Pop up in ContactPigeon

step1-login-to-account

5. Define the appear triggers of your exit intent pop up

step6-select-type-popup

6. Set the trigger rules and the settings of the exit intent pop up(s)

step5-configure-exit-intent-settings

7. Last Step! Configure the graphics, the copy and the rest settings of your exit intent pop up

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With an 88-year history, LEGO has accumulated some very  impressive statistics , including: 

  • Seven LEGO sets are sold every second in some parts of the world. That calculates to more than 600,000 a day.
  • Every second, about 1300 LEGO pieces are made around the world.
  • The LEGO Group’s logo was designed in 1973 and has not been changed since.
  • You can potentially combine six 2X4-inch LEGO bricks in over 915 million ways.
  • LEGO consumers spend nearly 5 billion hours per year on LEGO products.
  • There are more than 400 billion LEGO bricks in the world.

The success of the LEGO Group may seem like a phenomenon. 

Still, the company continues to thrive after almost ninety years simply because of its willingness to innovate and acknowledge aspects of the LEGO marketing strategy that needed to change over the generations—and which investments needed to be kept stable to sustain a healthy marketing brand. Its well-thought-out assessments and its willingness to execute consistently enables this family-owned company to survive even today.

With the COVID-19 pandemic forcing businesses everywhere to re-evaluate their priorities and marketing strategies, it is more crucial than ever for company owners to be proactive in developing a well-conceived plan. This will not only let your business survive the current pandemic but also thrive for years to come. 

Ready to make your business a thriving one? Then book a free retail customer engagement consultation with  ContactPigeon . Our experts will help show how to use our platform to engage with customers today and adapt effectively to the new reality.

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A mass of cross-looking Lego figure heads

How Lego clicked: the super brand that reinvented itself

The revival of Lego has been hailed as the greatest turnaround in corporate history, ousting Ferrari as the world’s most powerful brand. Johnny Davis reports

F rom its founding in 1932 until 1998, Lego had never posted a loss. By 2003 it was in big trouble. Sales were down 30% year-on-year and it was $800m in debt. An internal report revealed it hadn’t added anything of value to its portfolio for a decade.

Consultants hurried to Lego’s Danish HQ. They advised diversification. The brick had been around since the 1950s, they said, it was obsolete. Lego should look to Mattel, home to Fisher-Price, Barbie, Hot Wheels and Matchbox toys, a company whose portfolio was broad and varied. Lego took their advice: in doing so it almost went bust. It introduced jewellery for girls. There were Lego clothes. It opened theme parks that cost £125m to build and lost £25m in their first year. It built its own video games company from scratch, the largest installation of Silicon Graphics supercomputers in northern Europe , despite having no experience in the field. Lego’s toys still sold, particularly tie-ins, like their Star Wars and Harry Potter -themed kits. But only if there was a movie out that year. Otherwise they sat on shelves.

“We are on a burning platform,” Lego’s CEO Jørgen Vig Knudstorp told colleagues. “We’re running out of cash… [and] likely won’t survive”

In 2015, the still privately owned, family controlled Lego Group overtook Ferrari to become the world’s most powerful brand. It announced profits of £660m, making it the number one toy company in Europe and Asia, and number three in North America, where sales topped $1bn for the first time. From 2008 to 2010 its profits quadrupled, outstripping Apple’s. Indeed, it has been called the Apple of toys: a profit-generating, design-driven miracle built around premium, intuitive, covetable hardware that fans can’t get enough of. Last year Lego sold 75bn bricks. Lego people – “Minifigures” – the 4cm-tall yellow characters with dotty eyes, permanent grins, hooks for hands and pegs for legs – outnumber humans. The British Toy Retailers Association voted Lego the toy of the century.

A man at a desk with a Lego tower next to the desk

When The Lego Movie came out in 2014 the film snob website Rotten Tomatoes awarded it a 96% approval rating: only Oscar nominees 12 Years a Slave and Gravity matched it. This year’s follow-up, The Lego Batman Movie , outperformed the last “proper” Batman movie, Batman v Superman: Dawn of Justice , to such a degree that DC Comics now faces a genuine problem: audiences overwhelmingly prefer the Dark Knight in his pompous and plastic version voiced by Will Arnett , rather than Ben Affleck ’s portrayal.

Lego’s revival has been called the greatest turnaround in corporate history. A book devoted to the subject, David Robertson’s Brick by Brick: How Lego Rewrote the Rules of Innovation , has become a set business text. Sony, Adidas and Boeing are said to refer to it. Google now uses Lego bricks to help its employees innovate.

Lego’s saviour is the aforementioned Vig Knudstorp – a father of four, perhaps not uncoincidentally – who arrived from management consultants McKinsey & Company in 2001 and was promoted to boss within three years, aged 36. “In some ways, I think he’s a better model for innovation than Steve Jobs,” Robertson has said.

A model of the new Lego House in red, yellow, green and blue

Last month I flew to Billund, a small town in the Jutland peninsula where Lego was founded. The landscape was flat and grey, but as I drove from the airport a large primary coloured arm or head would occasionally appear though the pine trees: the Lego Group owns several buildings here and has decorated the landscape accordingly. I was immediately in a good mood.

“Billund was built to function, not to please,” explained Roar Trangbaek, Lego’s cheerful, bearded publicist. “There’s not a lot of fun here.” He meant there wasn’t a lot to do there – it’s hard to imagine the nightlife is up to much – but given that 120m Lego bricks are manufactured here every day, fun was very much the point of the place. As if to prove it, Trangbaek handed me his business card. It was a Minifigure of himself.

The following morning the Lego Group was due to announce its latest annual results. Today was an opportunity to meet some of its key employees, tour the factory and be among the first to step inside Lego House – a 130,000sq ft marvel that will open in September, and is expected to draw 250,000 visitors a year. It has been designed by Bjarke Ingels , the hottest name in architecture right now, whose commissions include Google’s HQ, the new World Trade Center and last year’s Serpentine Pavilion. Ingels certainly seems to have enjoyed himself: Lego House resembles 21 giant Lego bricks stacked into a 30m tower. Visitors can climb up to the rooftop garden and down the other side, pausing to take in attractions, restaurants, play zones and a gallery dedicated to fan-made Lego extravaganzas. Life-sized Lego sculptures had been placed around the interior – a cop, a firefighter – while real-life construction workers in hi-vis tabards beavered away around them, a surreal sight.

CEO Jørgen Vig Knudstorp’s Minifigure.

Lego had compensated for the disruption to the town’s shops by allowing them to exclusively sell Lego kits of the Lego House, the only place in the world they’ll be available. (For Lego’s numerous cult fans, this is a massive deal.)

Vig Knudstorp rescued Lego by methodically rebuilding it, brick by brick. He dumped things it had no expertise in – the Legoland parks are now owned by the British company Merlin Entertainments, for example. He slashed the inventory, halving the number of individual pieces Lego produces from 13,000 to 6,500. (Brick colours had somehow expanded from the original bright yellow, red and blue, sourced from Piet Mondrian , to more than 50.) He also encouraged interaction with Lego’s fans, something previously considered verboten. Far from killing off Lego, the internet has played a vital role in allowing fans to share their creations and promote events like Brickworld , adult Lego fan conventions. A year before James Surowiecki’s landmark book The Wisdom of Crowds was published, Lego launched its own crowdsourcing competition: originators of winning ideas get 1% of their product’s net sales, designs that so far include the Back to the Future DeLorean time machine, the Beatles’ Yellow Submarine and a set of female Nasa scientists.

“Lego has this incredible ability to engage with people and that has single-handedly enabled it to weather very, very difficult seas,” says Simon Cotterrell, from brand analytics firm Interbrand. “What’s made them successful over the past 10 years is their ability to create new entities, movies, TV shows, by partnering with brilliant people. They’ve said: ‘We might not make as much money if we outsource it, but the product will be better.’ That mentality is very Danish. It comes from saying: ‘We’re engineers. We know what we’re good at. Let’s stick to our knitting.’ That’s a very brave thing to do and it’s where a lot of companies go wrong. They don’t understand that sometimes it’s better to let go than to hang on.”

It also started making hit toys again. As well as putting a focus back on classic Lego lines like City and Space, it has launched the ninja-themed Ninjago line, Mindstorms, kits that allow you to build programmable Lego robots, aimed at teens. And for grown-up kids, Lego Architecture, replicas of the Guggenheim, Burj Khalifa and Robie House , that last one not for the feint-hearted or time-poor – it contains 2,276 bricks. Most impressively for a company with a customer base that in 2011 was 90% boys, it finally cracked the girls’ market. Lego Friends features a reconfigured “Mini-doll” and centres on five characters in the fictional Heartlake City. None of this has happened by chance. Lego is said to conduct the largest ethnographic study of children in the world.

Lego figure Batman, from the Lego film

“We call it ‘camping with consumers’,” says Anne Flemmert Jensen, senior director of its Global Insights group. “My team spends all our time travelling around the world, talking to kids and their families and participating in their daily lives.” This includes watching how kids play on their own and with friends, how siblings interact and why some toys remain perennial favourites while others are relegated to the toy box. Children are fickle – as the makers of forgotten “must-have” Christmas toys, like Pogs and Furby, will concede.

Ninjago was crowdsourced: its first iteration featured skeletons as enemies because tests proved they were the most popular baddies among six-year-old boys, globally. “Ninjas crystallised themselves because we were, like: ‘What’s the greatest hero entry point?’” says Cerim Manovi, senior design manager and creative lead on the line. “We showed them superheroes, everything – but ninjas just grabbed kids right there.”

Lego Friends took four years of research (plus a $40m global marketing push) to get right.

“One of the main things was they couldn’t really relate to the Minifigure,” says Mauricio Affonso, Friends’ model designer. “It’s too blocky. Boys tend to be a lot more about good versus evil, whereas girls really see themselves through the Mini-doll. They wanted a greater level of detail, proportions and realism.”

Lego Friends sets (bakery, amusement park, riding camp, etc) tend to feature something else missing from boys’ sets: a loo. The boys don’t care, the girls’ pragmatism demanded it.

Designing the Lego Friends dolls.

Roar Trangbaek shows me the original Lego house, where the company’s founder Ole Kirk Christiansen lived. It’s now a private museum that tells the Lego chronology through artefacts, packaging and toys. More than one adult visitor has been known to burst into tears when confronted by a key line from their childhood: in my case the Space Lego of the mid-1970s. (Lego gets inundated with requests for re-releases, but they won’t do it. Their focus is the kids of now and tomorrow, not yesterday.) Christiansen was an expert carpenter when the Great Depression hit. He figured the one thing people would always find money for was toys for their children. His company motto is carved into a plaque here – “det bedste er ikke for godt” (Only the best is good enough) – something borne out when Christiansen’s son Godtfred returned home one day to proudly inform dad he’d saved them some cash by only applying two of the usual three coats of varnish to a wooden duck. He got a tongue- lashing for his trouble.

“It is a good story, but it’s also a true story,” says Trangbaek.

In 1946, against everyone’s advice, the family invested in a newfangled plastic-injection moulding machine. Later they adapted Croydon-based inventor Hilary Fisher Page’s self-locking bricks (billed his “sensible toy”) – plastic cubes with two rows of four studs to enable stacking. The final part of Lego’s success clicked into place in 1958 when it created its “system”. Where previously they’d made toys of all shapes and sizes now every brick fitted with every other: everything was backwards compatible. “We’ve got the bricks, you’ve got the ideas,” advised a 1992 Lego catalogue. A mathematician recently deduced that just six eight-stud bricks of the same colour could be combined 915,103,765 ways.

During the factory tour we saw some of those bricks being created. Here, 768 moulding machines work 24/7, 361 days of the year. There was a constant hiss: the sound of raw granulate being fed into the vast machines. Then something akin to Wonka magic, brightly coloured pieces of joy materialising at the other end. Lego’s quality control and precision is rigorous. As any parent who’s trodden on a piece knows, Lego is hard. The bricks have to be strong enough to hold together, but not so strong they can’t easily be pulled apart by a child. They call it “clutch power”. It is a huge industrial process, with similar plants in Hungary, China and Mexico. “Our idea is to have factories located close to key markets,” Trangbaek explained. Most companies make product where it’s cheapest then ship it. Not Lego. “It’s much more costly for us to lose a sale,” he said. “If you go to a toy store and you don’t find the product there on the shelf, you will be disappointed. But you will also not leave the shop without another toy.”

The Mindstorm robot

Lego is increasingly concentrating on bridging the physical and the virtual. This year it rolled out Lego Life, a social network for kids too young for Instagram to share their creations, gaining “likes” from peers and Lego characters alike. “Lego Batman can comment in character. ‘That’s awesome – would have been better in black and yellow,’” says Dieter Carstensen , head of digital child safety and the Lego Life team.“That kind of stuff.” There’s also Nexo Knights, a video game where powers are unlocked by scanning Lego pieces. They’re researching VR and AR. “Some of the things we’re looking at are very near to being feasible now,” says William Thorogood, an irrepressibly bouncy Brit, and the senior innovation director with Lego’s creative play lab. “Other things are very exciting, but probably not feasible for 10 years, depending on how mature the tech becomes.” Later this year we can look forward to The Lego Ninjago Movie , whose tone looks every bit as irreverently daft as its predecessors.

The next morning in Billund, Lego announced the highest revenues in its 85-year-history. Since December the company has been run by another Brit, Bali Padda, the first non-Dane in charge, after Vig Knudstorp moved into a new role to expand the brand globally. Asia, with its booming middle class, is a focus.

“The reality is that the last few years the growth has been supernatural,” Julia Goldin, Lego’s chief marketing officer, tells me. “When you look at the proportion of revenue that’s coming out of the mature markets it becomes more and more challenging with the level of penetration. But we look at every year starting at zero because you have to recruit every child again and make the brand exciting for them. That becomes a good challenge, of course.”

Lego’s production plant with a man kneeling, his head out of the picture in the machinery and a scattering a Lego pieces in the foreground

Earlier I had met Bo Stjerne Thomsen, the director of research and learning with the Lego Foundation, an independent body that owns 25% of the Lego Group and studies early childhood development through play. (It has partnered with Unicef in South Africa, and funded the world’s first professor of play , at Cambridge University)

Thomsen produced two plastic bags containing a few red and yellow bricks, part of a basic kit they use to engage learning.

“Quickly build a duck,” he instructed me. “Everybody can usually do it in 40 seconds.”

We set to work. Thomsen’s duck had two outstretched wings. Mine had a red bill, a red slab for feet and a yellow block for a tail.

“Oh, that’s fun!” he said. “I like that.”

There was no wrong or right duck, of course. That was the point. “It’s about the process of making and investigating and learning,” Thomsen said.

“How fast do you think anyone can do a duck?” Thomsen asked.

I’m not sure, I said. Ten seconds?

“Ten seconds? OK, let me count.”

Then he slammed another set of pieces straight down on to the table.

“That’s my duck!” he beamed. “I just sliced it up so it’s ready for the oven. Ha ha!”

Lego is a serious business. It just happens to be in the business of fun.

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Innovating in existing markets: 3 lessons from LEGO

Beth Stackpole

Sep 21, 2021

With the invention of the interlocking plastic brick, a favorite toy of generations, LEGO was a poster child for business innovation — that is, until it wasn’t.

The Danish toymaker’s trajectory from industry trailblazer to the brink of bankruptcy to sustained recovery shows there’s more to innovation than sheer luck or a wholesale focus on disruption.

“No innovation lasts forever,” said David Robertson, a senior lecturer in operations management, in a recent webinar hosted by MIT Sloan Executive Education. “Sometimes you get hyper growth for a couple of years, sometimes you get steady growth for longer. But innovations run their course.”

From its inception in the 1930s to its brush with bankruptcy in 2003 and its subsequent turnaround, LEGO tried every approach in the book to managing innovation, some resulting in spectacular success and others in great failure, said Robertson, author of “ Brick by Brick: How LEGO Rewrote the Rules of Innovation and Conquered the Global Toy Industry .”

Based on years of research and what he’s seen at LEGO and other companies, Robertson advocates for an expansive approach to innovation — helping customers get more value from existing products by offering innovative complementary products, services, and business models.

“It’s how Apple turned itself around, it’s how GoPro got five years of 90% growth, it’s how Sherwin-Williams gets twice the price per gallon of paint than other paints that are functional equivalents,” explained Robertson, who also teaches an executive education course on the topic . “Marvel Comics turned itself around in the same way.”

Among the innovation lessons to be learned from those firms: Have a variety of tools in the toolbox and don’t be afraid to use them, listen deeply to your customers, and prepare for a steady diet of continuous reinvention to remain relevant, even as an iconic brand.

LEGO’s brick-by-brick approach

LEGO was a small family business that grew steadily until the management reins were handed off in the late 1970s to the grandson of the founder and newly minted MBA, Kjeld Kirk Kristiansen, who quickly unleashed a wave of innovation.

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With the younger Kristiansen at the helm, LEGO branched out into the Technic brand — a more sophisticated building system to attract older children — and launched the first mini figure and fantasy action play sets, fueling 15 years of growth during which the company doubled in size every five years.

Growth slowed in the 1990s for a number of reasons, including a rise in digital play experiences from companies such as Nintendo and Sony, the rise of Toys “R” Us and other big box stores, the expiration of LEGO’s brick patents, and the relocation of production of Mattel’s and Hasbro’s products to China, lowering the cost of their competitive toys.

LEGO responded in 1999 by refocusing its innovation efforts on revolutionary products that would reinvent the nature of play. “They became convinced that if all they offered was another box of bricks, they would become a commodity,” Robertson said. “They believed they needed to disrupt themselves before somebody else did.”

After a series of missteps that included the rollout of electronic toys for toddlers and a digitally connected action hero, LEGO found itself nearly bankrupt in 2003. In the rush to innovate, the firm lost sight of its core — physical construction-based play. After layoffs, emergency loans, and other measures aimed at staving off bankruptcy, LEGO turned those innovation miscues into a new strategy — one that precipitated a turnaround and laid the groundwork for further growth.

Among the key lessons that companies with a mature product line can follow to innovate:

Respect what made you great. Sometimes knowing where not to innovate is just as important as knowing where to innovate, Robertson said. LEGO learned that in a new digital landscape it was no longer enough to offer a box of plastic bricks — the brick had become a commodity. But the brick was still necessary, because that’s what customers expected of the brand.

Through trial and error and a number of failed digital-only initiatives, LEGO discovered customers wanted digital experiences that complemented core offerings, rather than replaced them.

Centering innovation around the brick-based construction experience through new stories, games, and experiences, exemplified by the fan-favorite Bionicle product line, is what drove customers back to the LEGO brand and returned the company to profitability.

“You try to understand who your customer is, what they care about — that’s the way we should think about innovation,” Robertson said. “You need to be dating your customer, not fighting your competitor.”

Maintain a customer-centric development process. When the big box stores took over from its ecosystem of small toy stores, LEGO lost an important channel for getting reliable customer feedback. LEGO began to evolve product development practices to support design thinking principles, empowering experts to come up with ideas for new products based on that critical customer input.

Today, LEGO regularly engages children in the process of character development, storytelling, and providing feedback on new playset ideas. “LEGO has a great expression for why they listen to kids when developing new toys,” said Robertson.  “Mads Nipper, the former head of marketing and product development, liked to say, ‘Kids will never lie to you about whether something’s fun or not.’”

Develop a family of complementary innovations to distinguish yourself from competitors. Innovation leaders need to lean on a range of different approaches for innovation, since tactics will vary depending on the scenario and business goals. It’s important to nurture a culture that’s able to shift gears if traditional methods don't deliver desired results.

“You need to learn how to play chords, not keys, on the innovation ‘piano,’” Robertson said. “Pursuing multiple, complementary innovations that harmonize to create something is much better than any one key alone.”

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Lego Marketing Strategy

Lego Marketing Strategy 2024: A Case Study

Lego, the iconic company known for its interlocking plastic bricks, has established itself as a leader in the toy industry. Despite the challenges posed by the COVID-19 pandemic, Lego experienced a remarkable 14% growth in sales during the first half of 2020. This success can be attributed to Lego’s effective marketing strategy, which combines innovative digitalization efforts and a deep understanding of its target audience.

Lego has developed a comprehensive branding and advertising approach that encompasses various tactics, including digital marketing and social media campaigns. By leveraging these strategies, Lego has successfully penetrated the market and segmented its customer base to cater to different demographics and interests. Furthermore, Lego has conducted a competitive analysis to stay ahead in a highly competitive industry.

In this comprehensive case study, we will analyze Lego’s marketing strategy and shed light on the techniques and tools the company employs to reach its customers effectively. From branding techniques to advertising tactics, we will uncover the secrets behind Lego’s continuous success in the toy market.

Key Takeaways:

  • Lego’s marketing strategy incorporates digitalization and a deep understanding of its target audience .
  • The company has successfully penetrated the market and segmented its customer base through effective branding and advertising tactics.
  • Lego employs innovative digital marketing and social media campaigns to engage with customers.
  • A competitive analysis allows Lego to stay ahead in a highly competitive industry.
  • By continuously evolving its marketing efforts , Lego has achieved remarkable sales growth even amidst challenging times.

The History of Lego

Lego, founded by Ole Kirk Kristiansen in 1932, has a rich and storied history that continues to shape the brand’s identity today. While the iconic Lego brick remains at the core of the company’s foundation, Lego has expanded far beyond its humble beginnings, becoming a global phenomenon with a diverse range of products and entertainment offerings.

Throughout its history, Lego has undergone significant evolution and innovation, adapting to the changing needs and preferences of its audience. What started as a simple toy has evolved into a brand that encompasses movies, video games, television shows, social media channels, and even amusement parks. This strategic expansion has kept Lego relevant and appealing to a wide range of consumers, both young and old.

One of the key factors behind Lego’s continued success is its ability to effectively communicate with its audience. The brand has always understood the importance of connecting with its customers, whether they be children or adults. Lego’s marketing efforts have successfully catered to both demographics, creating a sense of nostalgia for adults while sparking the imagination and creativity of children. This blend of tradition and innovation has solidified Lego’s brand identity and positioned it as a beloved and iconic name in the toy industry.

By diversifying its offerings and staying true to its core values, Lego has managed to remain a timeless brand that continues to capture the hearts and minds of people around the world. The company’s rich history and commitment to quality and creativity have allowed it to build a strong brand identity that resonates with consumers of all ages.

Analyzing the Retail Lego Marketing Strategy

Lego’s successful retail marketing strategy can be attributed to six key factors.

1. Lego Global Expansion and Diversification

Lego has been able to enter new markets and diversify its merchandise, allowing the company to adapt to changing consumer preferences. By expanding its presence globally, Lego has tapped into untapped markets, reaching a wider audience and driving sales.

2. Lego Social Media Marketing

Lego has embraced social media marketing as a powerful tool to engage with customers. Leveraging platforms like Facebook, Instagram, and YouTube, Lego delivers compelling content, showcasing its products, encouraging user-generated content, and fostering a sense of community.

3. Strong Partnerships with the Education Sector

Lego understands the importance of education and has established strong partnerships with the education sector. By collaborating with schools and educational programs, Lego offers products specifically designed to promote STEAM learning (Science, Technology, Engineering, Art, and Math). This collaboration enhances Lego’s brand reputation and encourages parents to select Lego as an educational tool for their children.

4. Customer Relationship Building

Lego prioritizes customer relationships by understanding the needs and preferences of its target audience. Lego actively listens to feedback and incorporates customer insights into product development and marketing strategies. By providing exceptional customer support and maintaining open communication channels, Lego has built trust and loyalty among its customers.

5. Embracing Online Retail

In response to the evolving retail landscape, Lego has established a strong online presence. By creating an intuitive and user-friendly eCommerce website, Lego offers customers a seamless shopping experience . The website features detailed product descriptions, high-quality images, and customer reviews that help potential buyers make informed purchasing decisions.

6. Offline Retail Store Experience

In addition to its online presence, Lego continues to invest in brick-and-mortar retail stores. Lego stores provide an immersive experience where customers can physically interact with Lego products. These stores offer exclusive sets, build experiences, and expert staff who assist customers with their brick-building needs.

By excelling in these areas, Lego has solidified its position as a leader in the retail market, continuously driving growth, and maintaining strong customer relationships.

Licensing & Merchandising Mentality

Lego has a strategic approach to expanding its brand through licensing and merchandising. By partnering with well-established brands such as Disney, Marvel, and DC Comics, Lego creates themed playsets that not only generate publicity but also drive sales. This collaboration allows Lego to tap into the existing fan base of these popular franchises, reaching a wider audience and strengthening the brand’s presence in the market.

In addition to licensed products, Lego has successfully capitalized on the popularity of movies like “The Lego Movie” franchise to promote its brand philosophy of play. By creating movie tie-in sets and leveraging the excitement surrounding these films, Lego reinforces its commitment to creativity and imagination, enticing both children and adults alike.

Lego’s focus on diversification goes beyond traditional toy sets. The company has ventured into other mediums, such as LEGOLAND theme parks and video games based on its products. These strategic initiatives provide Lego with additional revenue streams and opportunities to engage with consumers in new and innovative ways.

In summary, Lego’s licensing and merchandising mentality enables the brand to expand its reach, tap into existing fan bases, and diversify its offerings. This approach not only generates increased sales but also reinforces Lego’s position as a leading player in the toy industry.

Social Media/Content Marketing Strategy

Lego has strategically developed a strong social media presence, leveraging popular platforms such as Facebook, Instagram, and YouTube to engage with its target audience. Through these channels, Lego effectively showcases its latest products and captivates its followers with innovative creations and imaginative play.

On Facebook and Instagram, Lego maintains active pages that are frequently updated with captivating photos and videos of new Lego releases. By consistently sharing visually appealing content, Lego generates excitement and anticipation among its fans, driving interest and fostering brand loyalty.

Notably, Lego’s YouTube channel stands out as one of the most popular brand channels, attracting billions of views. Through carefully crafted videos, Lego showcases its products in action, sparking the imagination of viewers and igniting their desire to build and play.

Additionally, Lego embraces user-generated content, recognizing the creative power of its fanbase. Lego enthusiasts create their own Lego-themed channels on YouTube, showcasing their unique creations and sharing their love for the brand. Lego’s strong social media presence and engagement with user-generated content contribute to a vibrant and passionate Lego community.

By utilizing social media platforms effectively, Lego has successfully connected with its audience, fostered brand loyalty, and created a sense of belonging within the Lego community.

Achieving Brand Engagement:

  • Consistently updating Facebook and Instagram pages with visually appealing content
  • Creating captivating videos on YouTube to showcase products and inspire creativity
  • Encouraging user-generated content and fostering an active fan community

Integrated Customer Experience

Lego understands the importance of providing an integrated customer experience to its dedicated fan base. Through its robust digital platform, Lego offers various avenues for customer engagement and fosters a sense of community among Lego enthusiasts of all ages.

Lego Life: Connecting Children and Inspiring Creativity

One of the key components of Lego’s digital platform is the Lego Life social network app. Designed specifically for children, this app provides a safe and interactive space for young Lego enthusiasts to connect with each other, share their Lego creations, and immerse themselves in a world of creativity. With features like building challenges and fun quizzes, Lego Life not only promotes active engagement but also inspires children to explore their imagination and develop their building skills.

By leveraging the power of technology, Lego Life has revolutionized the way children interact with the Lego brand. It allows them to showcase their creations, discover new building techniques from fellow Lego builders, and engage in conversations centered around their favorite bricks. This digital platform not only serves as a source of inspiration but also fosters a sense of belonging and community among young Lego builders.

Lego Ideas: Collaborating with the Community

Another noteworthy aspect of Lego’s digital platform is the Lego Ideas online community. This platform enables Lego enthusiasts of all ages to showcase their unique creations, propose new Lego sets, and collaborate with the larger Lego community. Users can share their designs, garner support from fellow builders, and potentially see their creations turned into official Lego sets.

Through Lego Ideas, the Lego brand encourages user-generated content and actively involves its customer base in the product development process. This not only cultivates customer loyalty but also serves as a testament to Lego’s commitment to valuing and recognizing the creativity of its customers.

Customer Engagement and Community Building

The integration of Lego Life and Lego Ideas into Lego’s digital platform has created a vibrant online community where Lego enthusiasts can connect, learn, and collaborate. This customer engagement generates user-generated content, sparking creativity and inspiring others to embark on their own Lego-building journeys.

Strong Partnerships with the Education Sector

Lego recognizes the importance of education and has forged strong partnerships with schools and educational programs. Through these collaborations, Lego offers a range of educational products designed to promote STEAM learning (Science, Technology, Engineering, Art, and Math) in a fun and engaging way.

Lego Education Products

Lego’s education products are specifically tailored to enhance the learning experience in classrooms. These products combine the joy of playing with the educational benefits of STEAM subjects, inspiring students to explore and discover through hands-on activities.

One of the notable Lego education solutions is the Lego Education SPIKE Prime set. This set allows students to build and code their own creations, fostering essential skills such as critical thinking, problem-solving, and collaboration. By incorporating robotics and technology, Lego Education SPIKE Prime brings abstract concepts to life and prepares students for the digital future.

Lego Education Solutions also include sets like the Lego Education WeDo 2.0 and Lego Education Mindstorms EV3. These sets introduce students to engineering and coding principles, enabling them to construct their own machines and program them to perform various tasks. Through these interactive experiences, students develop logical thinking and creative problem-solving skills.

Lego STEAM Learning

By integrating STEAM learning into its educational products, Lego emphasizes the importance of a multidisciplinary approach to education. Lego’s STEAM learning initiatives encourage students to explore the interconnectedness of different subjects, fostering a holistic understanding of the world around them.

Lego provides various resources to support teachers in implementing STEAM learning in the classroom. These resources include curriculum packs, lesson plans, professional development programs, and online teacher communities. Lego’s dedication to educators ensures that they have the tools and support needed to deliver high-quality STEAM education.

Lego Education Partnerships

To further strengthen its presence in the education sector, Lego has established partnerships with schools, universities, and educational organizations. These partnerships aim to create innovative learning experiences and leverage the power of play to enhance educational outcomes.

For example, Lego has partnered with FIRST (For Inspiration and Recognition of Science and Technology) to support robotics competitions for students across the world. Through this collaboration, Lego nurtures interest in STEM fields and provides opportunities for young learners to showcase their skills and creativity.

Another significant partnership is the collaboration between Lego Education and the American Society for Engineering Education (ASEE). Together, they have developed resources and programs that integrate engineering concepts into the classroom, empowering students to become the engineers of tomorrow.

These strong partnerships with the education sector demonstrate Lego’s commitment to providing educators and students with the tools they need to succeed in an evolving world. By combining play and education, Lego continues to make a positive impact on STEAM learning.

Lego Education Solutions

Analyzing Lego’s eCommerce Website

Lego’s eCommerce website serves as a vital component of its marketing strategy. With a user-friendly interface and visually engaging design, the website offers customers a seamless shopping experience. Whether browsing for their favorite Lego sets or making a purchase, the website ensures a smooth and efficient transaction process.

The website’s layout is thoughtfully organized, featuring clear product categories and descriptions that make it easy for customers to find what they’re looking for. Customers can easily navigate through different themes, age groups, and product lines, reflecting Lego’s commitment to providing a diverse range of offerings.

One feature that enhances the website’s credibility is the inclusion of customer reviews and ratings. This valuable feedback not only helps customers make informed purchasing decisions but also builds trust and confidence in Lego products.

The checkout process on Lego’s eCommerce website is both efficient and secure. Customers can select their preferred payment method, such as credit cards or PayPal, and provide shipping information with ease. The website ensures the privacy and security of customer data, instilling confidence in the transaction process.

Lego’s eCommerce website is not only a platform for transactions but also serves as a hub for engaging with customers. With features like customer reviews and ratings, Lego encourages customer interaction and feedback, fostering a sense of community and loyalty.

Overall, Lego’s eCommerce website exemplifies effective website design and functionality. It showcases the brand’s commitment to providing an exceptional customer experience, reinforcing its position as a leader in the toy industry.

Analyzing Lego’s Category Page

Lego’s category page is a crucial component of its website, providing a user-friendly interface for customers to explore and discover the wide range of Lego products. The category page is intelligently organized, employing effective product categorization and assortment strategies to enhance the customer experience and facilitate product searches.

One of the key features of Lego’s category page is its organization based on different themes, age groups, and product lines. This categorization allows customers to easily find products that align with their interests and preferences. Whether a customer is looking for a specific Lego theme, such as City, Star Wars, or Ninjago, or targeting a certain age group, such as toddlers, kids, or adults, Lego’s category page provides a comprehensive selection of options.

The assortment of products showcased on the category page is another strength of Lego’s marketing strategy. Customers are greeted with a diverse array of Lego sets, ensuring that there is something for every Lego enthusiast. From classic building sets to innovative robotics kits, the category page presents an enticing assortment that caters to various tastes and preferences.

Lego’s category page is designed to accommodate a diverse customer base, capturing the attention of children, parents, collectors, and hobbyists alike. With its intuitive layout, customers can effortlessly navigate the page, making informed decisions about their purchases. The visually appealing presentation of products, along with clear descriptions and images, helps customers make informed choices.

Lego’s Category Page Visual Elements

In addition to effective categorization and assortment strategies, Lego utilizes visually engaging elements on its category page to captivate customers. The page incorporates high-quality product images that provide a clear representation of each Lego set. These images allow customers to visualize the sets and assess their features before making a purchase.

Lego also incorporates customer reviews and ratings on the category page, adding a layer of social proof and credibility. Customers can read feedback from other Lego enthusiasts, gaining insights into the quality and playability of different sets. This transparency builds trust and confidence in the Lego brand.

Lego’s Category Page Table

Analyzing lego’s product page.

Lego’s product pages play a crucial role in providing customers with detailed information about each product. These meticulously designed pages include essential elements such as product descriptions, images, and customer reviews, ensuring that potential buyers have all the necessary information to make informed decisions. Let’s take a closer look at how these features contribute to the success of Lego’s product pages.

Product Descriptions

The product descriptions on Lego’s product pages are carefully crafted to highlight the unique features and benefits of each Lego set. These descriptions not only provide customers with an overview of the set’s theme and content but also emphasize the imaginative play possibilities and educational value. By effectively showcasing the key selling points, Lego entices customers to consider purchasing the sets, appealing to both children and adults.

High-Quality Images

Visual appeal is a crucial aspect of Lego’s product pages, and high-quality images play a significant role in creating an immersive and engaging shopping experience. The product images showcase each set from various angles, allowing customers to get a clear idea of what they are buying. These images serve as a visual representation of the Lego set’s contents, helping customers visualize the building process and the final outcome.

Customer Reviews

Customer reviews are another important element found on Lego’s product pages. These reviews provide authentic feedback and opinions from customers who have already purchased and built the specific Lego set. By including customer reviews, Lego builds trust and confidence among potential buyers, allowing them to make more informed decisions based on the experiences of others. Positive reviews can significantly influence purchasing decisions and drive sales.

In conclusion, Lego’s product pages are meticulously designed to inform and persuade customers. The combination of compelling product descriptions, high-quality images, and authentic customer reviews creates a comprehensive shopping experience that drives conversions and sales. By providing customers with the necessary information and visual representation, Lego ensures that they can confidently choose the sets that best suit their preferences and interests.

Analyzing Lego’s Checkout Process

Lego’s checkout process is designed with the customer in mind, ensuring a seamless and efficient experience. From adding items to the cart to completing the purchase, Lego makes it easy for customers to navigate through the checkout process.

One of the key features of Lego’s checkout process is the flexibility it offers in terms of payment options. Customers can choose to pay with credit cards or use popular online payment gateways like PayPal, providing a convenient and secure way to complete their purchase.

Once the payment is confirmed, Lego’s order fulfillment process kicks into action. The company ensures prompt delivery of the products, with reliable shipping partners and a trackable shipping process. This allows customers to stay informed about the progress of their order, providing peace of mind and reassurance.

In conclusion, Lego’s checkout process is designed to provide a positive customer experience from start to finish. The user-friendly interface, multiple payment options, and streamlined order fulfillment contribute to customer satisfaction and encourage repeat purchases. Whether shopping for the latest Lego sets or exploring new additions to their collection, Lego’s seamless checkout process ensures a smooth and hassle-free transaction for its valued customers.

What is Lego’s marketing strategy?

Lego’s marketing strategy incorporates digitalization and a deep understanding of its customer base. The company enters new markets, embraces social media marketing, establishes strong partnerships with the education sector, and diversifies its product offerings through licensing and merchandising.

How has Lego expanded its brand?

Lego has expanded its brand through collaborations with well-established brands, such as Disney, Marvel, and DC Comics, creating themed playsets. The company has also ventured into other mediums, such as LEGOLAND theme parks and video games based on its products.

How does Lego utilize social media in its marketing strategy?

Lego has a strong presence on social media platforms like Facebook, Instagram, and YouTube. The company regularly updates its pages with new Lego releases and innovative creations, and encourages user-generated content.

How does Lego engage with its customers through its digital platform?

Lego provides an integrated customer experience through its digital platform. The LEGO Life social network app allows children to share their Lego creations and engage with others in the online community. Lego also has an online community called Lego Ideas, where members can share their creations and propose new Lego sets for production.

How does Lego cater to the education sector?

Lego has positioned itself as an educational toy brand by establishing partnerships with schools and educational programs, offering products specifically designed to promote STEAM learning. Lego Education Solutions provide hands-on learning experiences that make subjects come alive in the classroom.

What is the role of Lego’s eCommerce website in its marketing strategy?

Lego’s eCommerce website plays a crucial role in its marketing strategy by offering a seamless shopping experience with visually appealing design, clear product categories, and descriptions. The website also provides customer reviews and ratings, and ensures a smooth checkout process.

How does Lego guide customers to the right products?

Lego’s category page is organized based on different themes, age groups, and product lines, making it easy for customers to find the products they are looking for. The page showcases the wide range of Lego products available, appealing to a diverse customer base.

What information is provided on Lego’s product pages?

Lego’s product pages provide detailed information about each product, including descriptions, images, and customer reviews. The descriptions highlight the unique features and benefits of each Lego set, and high-quality images showcase the product from different angles.

What is the checkout process like on Lego’s eCommerce website?

Lego’s checkout process is designed to be user-friendly and efficient. Customers can easily add items to their cart, select their preferred payment options, and provide shipping information. Lego offers multiple payment options, and ensures prompt delivery and package tracking.

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lego marketing case study

The Effective Lego Marketing Strategy: Building Success Brick by Brick

Lego, the iconic toy brand that has captivated generations, owes much of its success to its effective marketing strategy . By understanding the power of nostalgia , leveraging collaborations and partnerships, and embracing innovation, Lego has built a strong brand identity that resonates with its target audience. In this article, we will explore how Lego's marketing strategy has evolved over time and the impact it has had on its target audience. We will also dive into the digital transformation of Lego's marketing efforts and look ahead to the future of their strategy.

Understanding Lego's Marketing Strategy

Lego's marketing success lies in its ability to tap into the power of nostalgia. The brand's strong connection to childhood memories has played a crucial role in its ongoing popularity. By consistently reminding consumers of the joy and creativity associated with Lego, the company has created a sense of emotional attachment that keeps customers coming back.

In today's fast-paced world, where technology dominates the entertainment industry, Lego has managed to carve out a special place for itself. The simplicity and tactile nature of Lego bricks offer a refreshing break from screens and virtual experiences. Building with Lego not only stimulates the imagination but also provides a hands-on experience that engages both children and adults alike.

Moreover, Lego's commitment to quality has been a driving force behind its success. The brand's dedication to producing durable and reliable products ensures that customers can enjoy their Lego sets for years to come. This commitment to quality has earned Lego a reputation as a trusted and dependable brand, further strengthening the emotional connection between consumers and the company.

In addition to nostalgia, Lego has also excelled at forming collaborations and partnerships . By teaming up with popular franchises like Star Wars and Harry Potter, Lego has expanded its reach and attracted new customers. These partnerships not only spark the interest of fans of these franchises but also allow Lego to tap into the existing fan base of these properties.

Through these collaborations, Lego has transformed iconic characters and settings into brick form, allowing fans to recreate their favorite scenes and stories. This merging of beloved franchises with the creative possibilities of Lego has resulted in a truly unique and captivating experience for fans of all ages.

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Lego's Embracing of Innovation in its Marketing Program

Furthermore, Lego's commitment to innovation has been instrumental in its success. The brand constantly evolves its products and introduces new features to keep up with the changing demands of consumers. This commitment to innovation ensures that Lego remains relevant and continues to drive interest among both new and existing customers.

From introducing motorized components to incorporating augmented reality, Lego has embraced technological advancements without compromising the core essence of its brand. By blending the traditional and the modern, Lego has managed to stay at the forefront of the toy industry, captivating the imagination of generations.

Additionally, Lego's marketing strategy extends beyond product innovation. The company actively engages with its community through various initiatives, such as Lego Ideas, where fans can submit their own designs for potential Lego sets. This not only fosters a sense of inclusivity but also empowers fans to become part of the Lego journey.

Furthermore, Lego's commitment to sustainability is commendable. The brand has taken significant steps to reduce its environmental impact by using plant-based materials for its bricks and packaging. By prioritizing sustainability, Lego not only aligns itself with the values of environmentally conscious consumers but also sets an example for other companies in the industry.

In conclusion, Lego's marketing strategy is a masterclass in leveraging nostalgia, forming collaborations, embracing innovation, and engaging with its community . By tapping into the power of childhood memories, partnering with popular franchises, constantly evolving its products, and prioritizing sustainability, Lego has managed to create a brand that resonates with consumers of all ages. As Lego continues to inspire creativity and capture the hearts of millions, its marketing strategy serves as a blueprint for success in the ever-evolving world of toys and entertainment.

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The Impact of Lego's Marketing on its Target Audience

Lego's marketing efforts are carefully targeted to engage different demographics. When it comes to engaging the younger demographic, Lego has successfully adapted to the digital age. Through animated TV shows, movies, and video games, Lego has created a multi-platform experience that appeals to children and encourages their creativity.

For instance, Lego's animated TV shows, such as "Lego Ninjago: Masters of Spinjitzu," have gained a massive following among kids. These shows not only entertain but also incorporate important life lessons, such as teamwork and perseverance. By weaving these values into their storytelling, Lego not only captures the attention of young viewers but also imparts valuable lessons that resonate with parents.

In addition to TV shows, Lego has also ventured into the world of movies. The Lego Movie, released in 2014, was a huge success, captivating both children and adults alike. The film's witty humor, stunning animation, and relatable characters made it a hit among audiences of all ages. Lego's marketing team cleverly leveraged the movie's popularity by creating Lego sets based on the film's characters and settings, further fueling the imagination and creativity of young fans.

Moreover, Lego's foray into video games has been equally impressive. The Lego video game franchise, including titles like Lego Star Wars and Lego Marvel Super Heroes, has garnered a loyal fan base. These games not only provide hours of entertainment but also foster problem-solving skills and strategic thinking in children. By incorporating beloved characters and storylines into their games, Lego ensures that their marketing efforts are not only engaging but also educational.

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Targeting Multiple Market Segments

However, Lego's marketing doesn't stop with kids. The company has also recognized the significant adult fan base it has cultivated over the years. By creating intricate and detailed sets targeted at adults, Lego has tapped into the nostalgic feelings of grown-ups who want to reconnect with their childhood.

People who played with Legos as a child can now buy lego sets that either harken back to the company's past products, or embrace subject matter a more mature audience will appreciate.

For example, Lego's Architecture series offers sets that allow adults to recreate iconic landmarks, such as the Eiffel Tower and the Taj Mahal, using Lego bricks. These sets not only provide a challenging building experience but also serve as decorative pieces that can be proudly displayed. By appealing to adults' love for architecture and design, Lego has successfully created a niche market that caters to their specific interests.

In addition to the Architecture series, Lego has also collaborated with popular franchises, such as Harry Potter and Star Wars, to create collector's sets aimed at adult fans. These sets feature highly detailed models of famous scenes and characters, appealing to the inner child in adults who grew up with these beloved stories. By tapping into the nostalgia and emotional connection that adults have with these franchises, Lego has managed to create a dedicated fan base that eagerly awaits each new release.

Furthermore, Lego has recognized the importance of community engagement in its marketing strategy. The company organizes events and conventions where adult fans can come together to showcase their creations, exchange ideas, and connect with like-minded individuals. These events not only foster a sense of belonging but also serve as a platform for Lego to gather valuable feedback and insights from its adult fan base.

Lego's marketing efforts have had a significant impact on its target audience. By adapting to the digital age and creating multi-platform experiences for children, Lego has successfully captured the attention and imagination of young fans. Simultaneously, by targeting adults with intricate sets and nostalgic collaborations, Lego has tapped into a dedicated fan base that continues to support and engage with the brand. Through its innovative marketing strategies, Lego has solidified its position as a beloved brand that appeals to both young and old alike.

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The Digital Transformation of Lego's Marketing

In recent years, Lego has undergone a remarkable digital transformation, revolutionizing its marketing efforts and expanding its presence in the online world. By embracing the power of technology, the iconic brand has successfully connected with its audience in new and exciting ways.

One of the key aspects of Lego's digital transformation is its strong social media presence. Recognizing the immense potential of platforms like Facebook, Instagram, and YouTube, Lego has actively engaged with its fans, creating a vibrant community around its brand. Through these channels, Lego shares user-generated content, behind-the-scenes glimpses into the Lego world, and captivating stories that resonate with its audience. This interactive approach has fostered a sense of belonging and loyalty among Lego enthusiasts.

Furthermore, Lego has taken its digital marketing strategy to the next level by incorporating interactive online experiences. The brand's website is a treasure trove of immersive features that allow users to engage with Lego in ways they never thought possible. From interactive building instructions that guide users through the construction process to virtual play experiences that transport them into a digital Lego universe, the brand has successfully bridged the gap between physical and digital play. This innovative approach not only ensures that Lego remains relevant in an increasingly digital world but also enhances the overall customer experience.

But Lego's digital transformation doesn't stop there. The brand has also embraced the power of augmented reality (AR) to bring its products to life in a whole new dimension. Through the use of AR technology, Lego enthusiasts can now see their creations come to life on their smartphones or tablets. By simply pointing their device's camera at a physical Lego set, users can watch as their creation is transformed into a virtual masterpiece, complete with animated characters and interactive elements. This seamless integration of physical and digital play experiences has captivated the imaginations of both young and old Lego fans alike.

Moreover, Lego has recognized the importance of personalized marketing in the digital age. Through data-driven insights and advanced analytics, the brand has gained a deep understanding of its audience's preferences and behaviors. This knowledge allows Lego to deliver highly targeted and relevant content to its customers, ensuring that every interaction with the brand is meaningful and engaging.

Lego's digital transformation has propelled the brand into new realms of marketing excellence. By embracing social media, creating interactive online experiences, harnessing the power of augmented reality, and leveraging data-driven insights, Lego has successfully adapted to the demands of the digital age. As the brand continues to evolve and innovate, one thing is certain – Lego's digital transformation is a testament to its commitment to staying relevant and captivating in an ever-changing world.

Related: Lululemon Marketing Strategy - A Closer Look

The Future of Lego's Marketing Strategy

Looking ahead, sustainability will play a significant role in Lego's marketing strategy. As the world increasingly emphasizes eco-friendly practices, Lego has committed to using sustainable materials in its products. This commitment not only appeals to environmentally conscious consumers but also ensures that Lego stays ahead of the curve in terms of corporate responsibility.

In addition to sustainability, Lego is also exploring the potential of augmented reality (AR) in its marketing efforts. By integrating AR technology into its products, Lego aims to create immersive and interactive experiences for its customers. This move towards AR aligns with the evolving preferences of consumers and allows Lego to stay at the forefront of technological innovation.

Final Thoughts on Lego's Marketing Strategy

In conclusion, Lego's marketing strategy has been incredibly effective in building success brick by brick . By understanding the power of nostalgia, leveraging collaborations and partnerships, and embracing innovation, Lego has established a strong brand identity that appeals to both young and old. With its digital transformation and future plans for sustainability and augmented reality, Lego continues to evolve its marketing strategy and stay relevant in the ever-changing toy industry.

Frequently Asked Questions About Lego's Marketing Strategy

What are the marketing strategies of lego.

LEGO's marketing strategies are multifaceted, focusing on engaging storytelling, co-creation with fans, and leveraging digital innovation to connect with its audience.

The brand emphasizes the educational and creative potential of its products, promoting them as tools for learning and imagination for children and adults alike. LEGO utilizes storytelling through movies, games, and online content to build emotional connections and bring its products to life. It also engages in co-creation initiatives, inviting LEGO fans to propose and vote on new set ideas, thereby fostering a strong community around the brand.

Digital innovation plays a significant role in LEGO's marketing, with the company using augmented reality, apps, and social media to enhance the product experience and engage with a digitally savvy audience. Additionally, LEGO partnerships with popular franchises such as Star Wars, Harry Potter, and Marvel further expand its appeal across different age groups and interests.

What is the target market for LEGO?

LEGO's target market is broad, encompassing children, teenagers, and adults who enjoy creative play, building, and collecting. While its primary focus is on children aged 4 to 12, for whom LEGO sets are designed to inspire creativity and develop problem-solving skills, the brand has successfully extended its appeal to teenagers and adults with more complex sets and themes.

This includes the LEGO Technic series for older children and adults interested in mechanics and engineering, and the LEGO Ideas and Creator Expert lines, which cater to adult fans of LEGO (AFOLs) and collectors looking for challenging builds and nostalgia-driven sets. LEGO also targets educators and schools with its STEM (Science, Technology, Engineering, and Mathematics) educational products, highlighting its commitment to learning through play.

What type of advertising does LEGO use?

LEGO uses a diverse mix of advertising methods to reach its audience, including television commercials, digital marketing, social media campaigns, and collaborative content with popular franchises. The brand's advertising often features engaging narratives that showcase the endless possibilities of LEGO building, appealing to both children's creativity and adults' nostalgia.

LEGO's digital marketing efforts are robust, utilizing online platforms to showcase new products, interactive content, and user-generated creations. Social media plays a crucial role in LEGO's advertising strategy, with the brand actively engaging with its community on platforms like Instagram, Twitter, and Facebook. LEGO also leverages partnerships with movie franchises, video games, and theme parks for co-branded advertising, expanding its reach and appealing to fans of those franchises.

What is LEGO's digital strategy?

LEGO's digital strategy is centered around enhancing the customer experience through innovative technology, engaging online content, and a strong social media presence.

The company invests in digital platforms that allow customers to explore products virtually, such as augmented reality apps that let users see what a finished LEGO set will look like in physical space. LEGO's website and mobile apps offer interactive building instructions, games, and a platform for sharing creations, encouraging engagement and creativity within its community.

Social media is a key component of LEGO's digital strategy, with the brand using these channels to share news, showcase user-generated content, and engage in two-way conversations with fans. LEGO also explores digital storytelling through web series, online games, and collaborations with digital influencers, aiming to connect with its audience in the digital spaces they frequent most.

About the Author

lego marketing case study

Hi, I'm Justin and I write Brand Credential. I started Brand Credential as a resource to help share expertise from my 10-year brand building journey. ‍ I currently serve as the VP of Marketing for a tech company where I oversee all go-to-market functions. Throughout my career I've helped companies scale revenue to millions of dollars, helped executives build personal brands, and created hundreds of pieces of content since starting to write online in 2012.

As always, thank you so much for reading. If you’d like more personal branding and marketing tips, here are more ways I can help in the meantime:

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HBS Cases: LEGO

Although it isn't part of the admissions criteria, experience playing with LEGOs can come in handy at Harvard Business School.

When Stefan H. Thomke teaches his new case about the iconic toy company, he gives students eight-studded LEGO building bricks to figure out how many different ways they can be combined. Thomke's experience goes back a long way—as a kid growing up in Germany he participated in a LEGO competition. As an adult, though, his interests lie more in the business behind the bricks. "When you've written many cases you have a gut feeling that one like this could be really great," he says.

Thomke, the William Barclay Harding Professor of Business Administration, wrote the case with Harvard Business School's Jan W. Rivkin, the Bruce V. Rauner Professor of Business Administration, and Daniela Beyersdorfer, associate director of the HBS Europe Research Center.

LEGO explores how the company-one of the most profitable toymakers in the world-grew to global dominance from humble beginnings; the mistakes that led it near bankruptcy; and why one turnaround attempt failed while a second succeeded. LEGO executives were unusually supportive about the case-writing process, Thomke says. "We had access to everybody; they wanted the story to be told truthfully, with all the good and the bad."

Building At The Start

Part of that access included a visit to a wood craftsman's workshop in the small town of Billund, Denmark, where LEGO began, in 1916. Carpenter Ole Kirk Kristiansen eventually shifted the business from making houses and furniture to crafting wooden toys. He based the name of his new venture on the Danish words for "play well" (and, as it turned out, the Latin words for "to assemble"). His motto "Only the best is good enough" would later be carved into a wooden plaque and hung in the workshop. These themes of good play and quality products were both bedrocks and touchstones for future generations of LEGO toy makers.

Godtfred Kirk Kristiansen represented the second generation, working alongside his father at age 12. The LEGO brick played with by kids and adults around the globe came into being during Godtfred's tenure. He considered it a unique, sturdy, simple product—a system—that offered endless opportunities for creative fun, and drew up a list of product characteristics including "long hours of play" and "quality in every detail" that was distributed to everyone in the company.

Like his father, Godtfred paid careful attention to every aspect of the business, applying, for example, his knowledge of material science and production technology to the brick-manufacturing process. It's because of these precise specifications that bricks made under his watch are interchangeable with those available today. Godtfred's cautious nature extended all the way to the profit margins: he championed slow, steady growth. Because of this, it could take years for a new product to go to market. Green bricks, for instance, appeared in play sets only after a decadelong decision-making process-and the idea to include them came from Godtfred's son (and third-generation toymaker), Kjeld.

The snail's pace served the company well, as did the grandson of its founder. Under Kjeld's management, product demand was so high at times that executives actually found themselves discussing ways to slow sales.

A Shock To The System

That all changed in the early 1990s as seismic shifts pounded the toy market. Big Box toy discounters trampled mom-and-pops and lowered prices dramatically. Meanwhile, birth rates declined, children had less time to play and not much interest in toys that didn't offer instant gratification. "These changes did not play well to our strengths," observed current CEO Jørgen Vig Knudstorp in the case.

Serious jolts were also taking place in the LEGO Group. Out of work for a year following a serious illness in 1993, Kjeld appointed a five-person management team to help him run the company when he returned. The group focused mainly on driving growth. When a benchmarking study revealed LEGO's global name recognition was on par with industry giants like Disney, the team started churning out new products and ideas to leverage the brand's untapped value. A line of LEGO-branded children's wear was created and a division of the LEGO Group was charged with pitching book, movie, and TV ideas. LEGO building sets became increasingly complex with more unique components.

While the number of LEGO-branded items grew, sales did not, and in 1998 the company suffered its first financial loss. "Their top-line growth was slowing down but their cost was accelerating, so they were starting to lose some significant money," says Thomke.

Danish turnaround expert Poul Plougmann was hired to reassemble LEGO and staunch the red ink. "He comes in and … does things by the book," says Thomke. "He lays people off, he streamlines some things, he globalizes." And yet the financial picture grew worse. "He's basically going by the turnaround book, but it doesn't work."

One continuing problem: the company's growing complexity was choking it. Adding more bricks made products harder to assemble, forecasts harder to determine, and inventory harder to manage. Depending on the kit, there was either too much inventory, or no inventory at all, and restocking could take months.

"You had this multiplier effect of added complexity that went through the entire supply chain," Thomke says.

LEGO has built one of the most profitable toy companies in the world.

The LEGO Group had also gotten too far away from the core values it had been building on for the better part of a century. The toymaker found itself needing to turn around its turnaround.

Outside The Family

Enter Jørgen Knudstorp. He was just 35 years old when Kjeld promoted him from director of strategic development to CEO in 2004. (Kjeld retired that same year.)

Like Plougmann, he had no family ties to the company. Unlike Plougmann, his turnaround attempt succeeded. Knudstorp's slow-it-down approach of careful cash management, focusing on core products, and reducing product complexity certainly contributed to that success. It would also take re-engaging with customers, many of whom passed a love of LEGOs to their children while still connecting with the toys themselves. "One of the insights Jørgen had when he became CEO was that he needed to reconnect with the community [of loyal LEGO fans], one of the most powerful assets the company had," says Thomke. "It was a huge part of the comeback."

Knudstorp worked hard to define the core business of the company. "How you work with, and experiment outside of, the core of your business is part of that balance," explains Thomke.

Knudstorp recognized that innovation was part of that core, but he'd also seen the result of unconstrained creativity, so new product design began to be informed by market research, user feedback, and how well the toys matched the vision of quality creative play laid out by its founding fathers. Putting parameters on how people innovate had the paradoxical effect of making them better at it.

Reining in the creative process was part of a larger push by Knudstorp to reduce overall complexity within the organization. On the supply chain side, he did away with many of the unique brick components added during Plougmann's tenure, and eventually decided to bring brick manufacturing back in-house to ensure quality control.

Finally, Knudstorp made big changes to the management team, firing five of seven manufacturing executives and appointing a new leader for the team. A psychoanalyst was brought in to teach the management team how to identify decision-making made by logic versus emotion.

Sustainable And Balanced

It turns out that LEGOs promote lifelong learning. While the bricks themselves teach children the fundamentals of construction and creativity, the company's almost century-old history of management change has important lessons for businesspeople. "Managing sustainable growth is also about managing a balanced business system," says Thomke. "Complexity is something you need to watch very closely."

Controlling complexity, clarifying the core of its business, and engaging the larger community helped save the LEGO Group. Although he was not a Kristiansen by birth, Knudstorp's management style and business ideals closely mirrored those of its founding fathers. Only the best was, and is, good enough.

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How marketing built Lego into the world’s favorite toy brand

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Map & Fire

Lego Branding Strategy and Marketing Case Study

Analysis and examples of lego’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

Back To The Branding Strategies Homepage

Lego brand logo

Brand Overview

  • Entertainment & Media

Business Type

Physical Products & In-Person Service

https://lego.com

Target Customer

Creative Minded Kids and Adults

Primary Need ( Job To Be Done )

Engage with an activity that combines creativity, problem solving, and a tactile experience

Brand Visual Identity & Content

Primary brand colors, brand typefaces, hero content.

Lego hero image

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Creator Brand Archetype

Brand Positioning ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Self-Actualization

Element of Value Self-Actualization

Fun & Entertainment

Element of Value Fun & Entertainment

Brand Benefits

Gets kids engaged with a toy that encourages creativity with non-digital play

Teaches important lessons around problem solving, following directions, and spatial relations

Offers fun connections and integrations with many other brands and properties to spark the imagination

Competition

Key competitors.

Mattel, Hasbro, Playmates Toys

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lego marketing case study

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lego marketing case study

StartupTalky

Marketing Strategies of LEGO: Building Bricks of Success

Archana Karthikeyan

Archana Karthikeyan , Apoorva Bajj

Get ready to dive into the colorful and imaginative world of LEGO, where creativity reigns supreme and possibilities are limitless. For over eight decades, LEGO has captivated the hearts and minds of both young and old, becoming a household name and an iconic symbol of play and construction.

It all began in 1932 when Danish carpenter Ole Kirk Christiansen established the LEGO Group. Little did he know that his humble workshop in Billund, Denmark, would become the birthplace of a global phenomenon. The name “LEGO” is derived from the Danish words “leg godt”, which mean “play well”. And indeed, LEGO has lived up to its name by bringing joy and inspiration to millions worldwide.

Over the years, LEGO has evolved from simple wooden toys to the iconic interlocking plastic bricks that we know and love today. The introduction of the patented LEGO brick in 1958 revolutionized the toy industry, allowing children to build, dismantle, and rebuild their creations endlessly. This breakthrough innovation sparked the imagination of generations, empowering them to unleash their inner architects and engineers.

LEGO sets have become a staple in households worldwide, with billions of bricks sold each year. It's no wonder that LEGO has secured a significant market share in the toy industry, cementing its position as a leading player.

LEGO’s accomplishments are as impressive as they are extensive. The company has received numerous accolades for its commitment to safety, sustainability, and educational value. It has fostered partnerships with beloved franchises like Star Wars, Harry Potter, and Marvel, enabling fans to bring their favorite characters and stories to life. LEGO’s iconic minifigures have become cultural icons, adored by collectors and enthusiasts alike.

In a world where screens often dominate playtime, LEGO stands as a beacon of creativity, encouraging hands-on exploration and imagination. Its impact extends far beyond mere toys; it fosters problem-solving skills, spatial awareness, and teamwork. As LEGO marches confidently into the future, it continues to inspire, educate, and empower, reminding us all that with a little imagination, we can build extraordinary things.

LEGO - Target Audience LEGO - Marketing Mix LEGO - Marketing Campaigns LEGO - Marketing Strategies

LEGO - Target Audience

LEGO has mastered the art of captivating a diverse audience, transcending age, gender, and cultural boundaries. Its appeal knows no limits, enchanting both the young and the young-at-heart. Let’s unravel the intricate web of LEGO’s target audience that contributes to its worldwide success.

LEGO casts a wide net, catering to a broad range of age groups. Its colorful bricks and imaginative play appeal to children as young as toddlers, stimulating their curiosity and fine motor skills. As children grow older, LEGO adapts, offering more complex sets and themes that challenge their building abilities and foster creativity. Teenagers and adults, too, find solace in the endless possibilities of LEGO, immersing themselves in intricate models and architectural marvels.

LEGO’s reach is truly global. Its universal appeal transcends borders, making it a cherished brand in countless countries and cultures. From bustling cities to rural communities, LEGO finds its way into the hands of children and adults across the globe. Its presence in retail stores, online marketplaces, and dedicated LEGO stores ensures accessibility to enthusiasts in both urban centers and remote corners of the world.

LEGO’s target audience extends beyond individual consumers. Its educational value and team-building potential make it a favorite among schools, community centers, and even corporate training programs. LEGO fosters collaboration, communication, and critical thinking, making it a valuable tool for learning and development across all age groups.

In the vibrant world of LEGO, age is just a number, and imagination knows no bounds. It’s a brand that brings people together, uniting them under the banner of creativity and play. Whether you’re a child discovering the joy of LEGO for the first time or an adult rediscovering the magic, LEGO welcomes all who dare to build their own extraordinary worlds.

lego marketing case study

LEGO - Marketing Mix

LEGO, the beloved toy brand that has captured the hearts and minds of millions, owes much of its success to a well-crafted and meticulously executed marketing mix. This powerful combination of elements ensures that LEGO remains at the forefront of the toy industry, captivating audiences young and old. Let’s delve into the world of LEGO’s marketing mix and explore how it has contributed to the brand’s enduring popularity.

LEGO offers a vast range of products , from classic brick sets to licensed themes featuring popular franchises. The brand’s commitment to quality and innovation is evident in its durable and versatile bricks, enabling endless creative possibilities. By constantly introducing new sets, themes, and collaborations, LEGO keeps its product lineup fresh and appealing, ensuring there's always something exciting for its audience to discover.

LEGO’s pricing strategy strikes a balance between value and perceived quality. The brand positions itself as a premium toy, reflecting the craftsmanship and brand heritage associated with its products. While LEGO sets may come with a higher price tag compared to some competitors , customers are willing to pay for the exceptional quality, design, and play experience that LEGO consistently delivers.

lego marketing case study

LEGO’s distribution strategy ensures wide availability and accessibility to its products. The brand utilizes a multi-channel approach, with products being sold in various retail outlets, including toy stores, department stores, and online marketplaces. LEGO’s own retail stores provide an immersive brand experience , allowing customers to explore the full range of sets and engage with interactive displays.

The brand leverages various channels to create a sense of excitement and engagement. Engaging television commercials, social media campaigns, and partnerships with influencers and content creators amplify LEGO's message to a global audience. The brand's online presence, interactive website, and user-generated content platforms encourage fans to share their creations and connect with like-minded enthusiasts.

LEGO’s marketing mix showcases a harmonious blend of product, price, promotion, and distribution strategies.

LEGO - Marketing Campaigns

LEGO has been the mastermind behind numerous captivating and memorable marketing campaigns , each designed to ignite imagination, capture attention, and inspire creativity. Let’s explore some of the top campaigns that have left a lasting impression on LEGO fans worldwide.

Rebuild the World

Launched in 2019, this campaign encouraged children and adults alike to break free from preconceived limitations and embrace their creative potential. Through vibrant commercials and social media activations, LEGO showcased the endless possibilities of its bricks, inviting people to build their own extraordinary worlds and unleash their imagination.

Build the Future

This campaign, launched in 2014, aimed to inspire the next generation of builders and innovators. LEGO partnered with various educational organizations and created initiatives like the “ LEGO Ideas ” platform, which allowed fans to submit their own designs for potential production. The campaign emphasized the importance of hands-on learning, problem-solving, and critical thinking skills.

Rebuild Your Memories

This emotional campaign , launched in 2017, tugged at the heartstrings of LEGO fans of all ages. LEGO invited individuals to share their cherished memories and stories connected to LEGO through social media using the hashtag #RebuildYourMemories. The campaign celebrated the nostalgia and enduring legacy of LEGO, highlighting the brand's ability to create lasting bonds and treasured moments.

The LEGO Movie Partnership

The collaboration between LEGO and Warner Bros. for “ The LEGO Movie ” franchise was a groundbreaking marketing campaign. The movies themselves served as elaborate and entertaining commercials for LEGO, showcasing the brand’s creativity, humor, and universality. The partnership extended beyond the big screen, with LEGO sets and characters tied to the movies, creating an immersive brand experience.

These marketing campaigns demonstrate LEGO’s commitment to storytelling, innovation, and building connections with its audience.

LEGO - Marketing Strategies

Behind the colorful bricks lies a powerhouse of marketing strategies that have propelled LEGO to its iconic status. From innovative collaborations to immersive experiences, LEGO has mastered the art of engaging its audience. Let’s uncover the top marketing strategies that have cemented LEGO’s position as a global leader in the toy industry.

  • Iconic Partnerships

LEGO has forged strategic partnerships with beloved franchises like Star Wars, Harry Potter, and Marvel, leveraging the power of nostalgia and fandom. By combining their timeless brand with iconic characters and storylines, LEGO taps into existing fan bases, creating a compelling and irresistible product line.

  • User-Generated Content

LEGO’s marketing strategy actively encourages its passionate fan community to generate content. Through initiatives like LEGO Ideas and social media campaigns , LEGO invites fans to submit their own designs, showcasing their creativity and engagement. This strategy not only fosters a sense of ownership and community but also serves as a valuable source of inspiration and product development.

  • Immersive Brand Experiences

LEGO’s retail stores and branded attractions like Legoland offer immersive experiences that captivate visitors of all ages. These physical spaces provide hands-on play, interactive displays, and opportunities to see awe-inspiring LEGO creations. By creating memorable experiences , LEGO deepens its emotional connection with customers and reinforces the joy of the LEGO brand.

  • Emotional Storytelling

LEGO’s marketing campaigns often tug at the heartstrings, weaving narratives that evoke emotions and capture the essence of play. Whether through heartwarming commercials or storytelling competitions, LEGO appeals to the emotional connection people have with their childhood memories, reminding them of the power of imagination and creativity.

  • Engaging Digital Campaigns

LEGO has embraced the digital age with engaging online campaigns, interactive websites, and social media activations. From building challenges to digital building instructions, LEGO leverages technology to enhance the play experience and connect with its tech-savvy audience.

LEGO Website

  • Education and Learning

LEGO’s marketing strategies highlight the educational value of its products, positioning LEGO as a tool for learning and development. By partnering with educators, introducing educational sets, and promoting STEAM concepts, LEGO appeals to parents and educational institutions, reinforcing the brand's credibility and positioning it as a valuable educational resource.

LEGO Education

In the ever-evolving landscape of marketing, LEGO stands as a shining example of creativity, innovation, and customer engagement. Marketers and startups can draw inspiration from LEGO’s iconic partnerships, user-generated content, immersive experiences, and emotional storytelling. These strategies remind us of the power of understanding our audience, harnessing the enthusiasm of our customers, and creating meaningful connections. So, let us embrace the lessons learned from LEGO’s marketing prowess and embark on our own journey of building brand success. The bricks of opportunity are waiting to be assembled by those bold enough to learn and apply these valuable marketing strategies.

What is the target audience of LEGO?

LEGO is a brand that brings people together, uniting them under the banner of creativity and play. Whether you’re a child discovering the joy of LEGO for the first time or an adult rediscovering the magic, LEGO welcomes all who dare to build their own extraordinary worlds.

What are the marketing strategies of LEGO?

Below are the marketing strategies of LEGO -

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Insight & strategy

9 October 2019

Lego returns to brand advertising to fix creativity gap  /

The insights and strategy behind lego's first global brand campaign in three decades.

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Header image for article Lego returns to brand advertising to fix creativity gap

This story originally appeared on Contagious I/O, our online intelligence tool. To find out more click  here .

Last month, Lego revealed its first global brand campaign in 30 years. Rebuild the World, created in tandem with agency BETC in Paris is a live action-adventure film directed by multi-award winning collective Traktor aimed at sending a positive message about the power of creativity in bringing about change.

Contagious spoke to Rémi Marcelli, senior vice president of Lego Group and Dominique Verot, vice president of BETC to find out how and why the campaign came about.

This was Lego's first global brand campaign in 30 years, can you talk us through the decision to do that?

Rémi Marcelli :  The starting point was an accumulation of research coming from the World Economic Forum, highlighting a crisis of creativity. On the one hand, we are seeing the level of creative skills in children diminishing and we have less time to teach our kids to be creative makers (creative with a capital C).

That is because, on the other hand, in the face of artificial intelligence, today we are still too focused on academic learning. Companies rate creativity as the number one skill that they are looking for in a candidate, and according to the  World Economic Forum , 65% of children today will have a job that doesn’t exist yet. They will have to learn how to do their jobs later and to be creative in how they approach this challenge.

But there is another factor at play here, of course: Lego. At Lego, we have always considered ourselves part of creative activity. When a child is playing with Lego, they are developing creative skills, even if they are not necessarily seeing it or realising it at the time. But over time we had begun to be viewed as a toy, a model that is to be built and played with. During a creativity crisis, we had to reiterate our message and get back to what we were always about: developing creativity.

Dominique Verot :  For many new families, the brand is still too related to following instructions. In short, everyone knows Lego, but not everyone connects  Lego System in Play  with creativity.

Body image for Lego returns to brand advertising to fix creativity gap

In the Rebuild the World TV spot, there are many Easter eggs for people like me who played with Lego 20 years ago. This makes me wonder, who is this campaign aimed at? What is the primary audience here?

Marcelli :  The primary audience is more parents or gift givers or anyone who would consider purchasing Lego because they know how popular it is with children, but only see it for the model set. We wanted to show the world the true value of Lego, which is creativity. Parents are the core targets, but we also wanted something exhilarating for children to watch because at the end of the day that is who we are there for.

The Easter eggs signify another level to the message. We wanted to A, surprise people who have a set theory or perception of Lego and B, it had to be delightful for kids. And then there’s C, we wanted to send a message to our fans and the people who know who we are because they are so valuable to us that we can’t ignore them.

Body image for Lego returns to brand advertising to fix creativity gap

What are your thoughts on balancing Lego’s legacy, which is so tactile with the modern, more digital world?

Marcelli :  Well first things first, the brick is 100% here to stay. The building, creating, failing and trying again is here to stay. What we want to do is embrace the fact that there are more digital devices and digital solutions out there. We are launching products that are fluid play experiences where you can play with the set in the physical world, but also enhance your play through augmented reality.

This isn’t a question you would ask Fifa. They have a world-famous triple-A video game title, but we are not questioning the fact that there will still be kids who want to be footballers, and who will just play the game and have fun on the field. Lego isn’t antithetical to the modern world; it will always be relevant and only amplified by digital.

What are the brand’s key challenges right now?

Marcelli :  The main problem is being purchased for the right reason. I think for a while we were a little bit out of balance – emphasising the model toy aspect more than the creativity side – because it worked for so well for us. Fortunately, we are in that rare position where it is both the parents and the children who see the value in our product. If we are to maintain this trust in the future, we must ensure that we make a strong case for our creative value. Fortunately, the house is not currently on fire, this is more about setting the foundations for the next wave of growth.

Body image for Lego returns to brand advertising to fix creativity gap

Are there any competitors on the scene? What are your thoughts on Minecraft, for example?

Marcelli :  Our main competition remains time and ensuring that children have enough to play with our product. Whenever there’s passive consumption of something where the child isn’t learning, that’s the space we want to operate in. We see Minecraft more as a partner in this endeavour. There are after all Lego Minecraft sets out there.

Body image for Lego returns to brand advertising to fix creativity gap

Even though you have a formidable in-house agency, you decided to go with an external agency. Why?

Marcelli :  We viewed this as more of a partnership than as a client/agency relationship. I had people from my team and me, who were deeply involved in the creative process.

I was a client, and my internal client, the person in charge of brand development, I was accountable to him, no matter where the work was coming from. So, it was a real partnership, I had BETC people coming over here, spending time with my guys, and I had my guys spending time with BETC. Although broadly speaking the creative output and the Rebuild the World idea and execution came from them, it was really a partnership.

The reason why we wanted to have a partnership with an external agency is simple. First, they bring inspiration and help to keep everybody on their toes. But also, it can be hard to get a clear view of what to do when you’re so close to the ground and involved in your product. By bringing in an external perspective, it makes it more likely that something surprising or more spontaneous will appear in the creative process.

The Lego team brought the authenticity (the external agency alone would never have found the Easter eggs for example, that had to come from within our deep knowledge of the brand). However, execution-wise, we would never have been able to come up with something like Rebuild the World, even with our most creative people working on it. We needed that outside inspiration. It wasn’t outsourcing, more combining people who love Lego: one team who knew the brand very well, and the others who could rock the boat a bit.

Body image for Lego returns to brand advertising to fix creativity gap

And the result was a Lego advert with no Lego in.

Marcelli :  Well there are a few at the end. But that was a bit of the brief I pushed for. My brief to the agency was don’t fall into the trap of just doing stop motion or something akin to the Lego Movie – we are already well known and respected on that front. Everyone knows Lego – but not the creativity message, that was what we were pushing for, the message.

Verot :  That message being limitless creativity, every child can build and rebuild in infinity, imagining creative solutions, wild stories and new worlds.

What was it like to work with an external agency, when your in-house team is so formidable?

Marcelli:  There were a lot of regular catch-ups, and workshops. Usually, the biggest challenge for an external agency would be that the clients are not creative people, which is why the magic spark happened here. Both parties were extremely creative in nature. It gives a very different dynamic to the relationship between an agency and the client, because you have creative people talking to one another, sometimes it’s good, because you can understand each other, and sometimes there’s a healthy tension because of the passion involved – which is even better.

Body image for Lego returns to brand advertising to fix creativity gap

Is that the key to good creative?

Marcelli:  It’s exactly that. But it doesn’t work without passion. Luckily at Lego, we love the brand so much, there’s a real sense of belonging and I would say 100% of the Lego employees took the job because it was at Lego and not actually for what the job was, the job title comes second.

BETC respected and loved the brand so much that we really had a shared agenda, we had the shared vision and a shared ambition to do something spectacular, that wouldn’t harm the brand.

This story originally appeared on Contagious I/O, our online intelligence tool. To find out more click  here . ​

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Lego Case Study: The Lego Group Competitive Advantage & Strategy

Main feature of organization, strategic products and current mission, internal and external environments of the lego group, internal environment – swot value change of the company, external environment – pestel, porter five forces, power interest matrix of the lego group, new strategic directions for the organization, works cited.

The Lego Group is a toy-manufacturing company which is based in Billund, Denmark. The company was founded as a family organization in the year 1932, by Ole Kirk Christian. Today, the company stands high as a global player in the world of toys, among other strategic entertainment products (LeGoff 557).

Initially, Lego started as a manufacturer of ironing boards, toys, stepladders, and stools. Among these products, the wooden toys have been the best selling items, thus according the firm a strong reputation in the entertainment business. By the year 1949, the firm started manufacturing early versions of the popular LEGO plastic bricks and this was a strategic approach by the organisation, considering the fact that plastics had just greeted the markets as a new material (Simoes and Dibb 219).

However, the outcome was not what the company managers had anticipated, since the public was a bit hesitant in accepting the new material. The company would rapidly gain popularly in most parts of the world, as a result of progressive development of its products. For instance, the basic bricks were sustained with extra figures and features, in a manner that diversified the playing opportunities for children.

The company’s sales and profit scales were rapidly taking a positive charge between 1950 and 1970. However, the period between 1970 and 1990 proved to be a difficult moment for the company, owing to the serious economical implications that greeted the world then, following the oil crisis of the time.

In the course of this era and the period that followed afterwards, the Lego Group underwent serious fluctuations, due to a number of reasons which included; rapid change in the business environment witnessed at the time, complications in logistic matters and financial control, and the extended times that would be required to run into the future plans of the company.

Among the many problems which threatened to shake the firm’s potential, was the issue of the rising competition from much bigger companies such as Hasbro and Mattel (Hicks 41). Other new firms such as Sony, Activision, and Nintendo, who had just ventured the scene with more advanced electronic products, also posed great challenge to the productivity of the Group.

In this regard, the company’s only survival option in the competitive market was to adopt a strategic development plan that would see it come up with new and more exciting products. According to Claus, Riggs & Sekeran, the toy company enjoys a wide range of products that are fit for children of all ages (71).

These products are grouped in various categories, and some of the latest developments include video gaming, pre-school products, play themes, bricks, licensed products, and educational-based products for children, just to mention but a few. This is a clear indication of how the company has managed to remain high in the current competitive business of toy products.

The Lego Group was actively been involved in several turnaround attempts for the better part of 1990s and in the early 2000s, but with little success. No one could have foretold a possible solution to the progressive issues which appeared to claim the company, until towards the end of the year 2004, when a glimpse of hope shone onto the firm.

It was in the course of this period when the company’s serving CEO, Kjeld, took on more involvement in strategies that helped to identify the factors responsible for the company’s downsizing. This helped in the design of effective strategies that would eventually see the firm come back on track. The design and implementation of these strategies was based on the company’s organization, management and business expectation plans.

This involved the replacement of over three quarters of the senior management team with a new batch. Other strategies would be centered on the firm’s operational systems, among other key interventions.

For instance, a thorough revision was carried out on the cost and the supply chain operations of the company, and major changes were inflicted on the sectors right away. More importantly, the Lego Group had realized that working alone would not take them anywhere, and this would see them cooperate with licensing partners in the widely acclaimed gaming sector.

These interventions were sustained with a progressive development of the company’s products, to fit the demands of the modern era. The company has shown steady advancements lately, as a result of these interventions. The climax of this success was realized in the 2008-2009 financial year, which saw the company registering the biggest rate of growth in sales and profits, since the year 1981.

With these positive outcomes, there can’t be any doubts that the Lego Group is now back to its place in the development of children’s creativity, after several years of financial loss and failure (Irani, Sharif & Love 59). The objective of the company is to develop innovative products to meet the expansive consumer requirements, as they occur in the market.

As part of their recovery strength, the Group has reclaimed its position in the global listings, where it is ranked among the top five toy companies, with an approximate value of 4.8 percent in market shares. Lego’s success can also be associated with their mission, which aims at inspiring the current generation of children to be able to explore and challenge their own potential in creativity (Stacey 79).

This has been achieved through the group’s brand values, which are tailored on aspects meant to bring a significant impact on children. Some of these aspects would include things such as quality, imagination, fun, creativity, caring, and learning.

Lego group is a good example of the international companies that have managed to balance the nature and constraints of the internal and external environments, to make a notable difference in the current competitive world of business. From the perspective of various reports about the company, it is apparent how the toy company has reacted in adapting and utilizing the potential offered by its internal resources, in meeting the demands of its external environment.

According to Dyllick, Thomas & Hockerts, the company’s current strategic development has been achieved through the focused leadership of its former CEO, Kjeld Kirk (139). A better part of this success however, has been reached upon through the feedback which had been received regarding the internal competencies of the firm and its external operating systems.

A major tool that can be used to assess the overall potential of a firm is the SWOT analysis structure, which stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis basically considers two main parts; a company’s inward elements which normally constitutes of its strengths and weaknesses, and the attempts to consider the way these factors would come to fit against the external aspects of an organisation’s threats and opportunities.

The company’s key strengths are commonly associated with its constant ability to apply the concept of brand recognition in all its products and services, without having to compromise their core values. The company also maintains a close mutual relationship with its suppliers and retailers, and this gives it a powerful business advantage over its rivals in the industry.

The toy market is an industry bulging with a big number of competent players, but Lego’s products and services are the most preferred by majority of the people in the world (Oliver and Roos 911). This is due to their effective leadership in the development of a wide range of children products that have been praised for quality and originality. The newest products by the company are real manifestation of how the power of innovation applies, in meeting their goals and objectives in business.

Brand heritage is another strength which has succeeded at keeping the company ahead of its rivals in the industry (Hatch and Schultz 597). This is evident in how the company’s products are manufactured to fit in their brand values, which are aimed at making a significant impact on the lives of children all over the world.

Lego’s weaknesses in business can be observed through a number of ways. For instance, even though there have been serious attempts by the company to diversify its products, the company has been poor in technology and IT related matters compared to other competitors, who have fully embraced the power of technology in making their products more enticing to the users in the new media age (Schau 43). Lego Group has also been operating through large toy retailers, and this has been one of their biggest drawbacks in the market.

The large retailers are effective marketing outlets, but they normally operate on high costs and this is likely to deprive the company of substantial amounts of money in profits. More importantly, the company has failed to understand the marketing concepts which are in line with their consumers all over the world.

In other words, Lego group seems to be lacking full understanding of their consumer preferences in the market, and due to this lack of a strategic fit, they have often ended up losing more sales to their competitors in the market, who are well informed of the consumer needs regarding toys and gaming products.

It is also apparent that, Lego Group lacks the ability to effectively translate potential strengths into implemented strategies. This actually explains the company’s gradual response to financial and management issues, among other problems which have affected the company previously (Hölzl 39).

Opportunities & Threats

The company’s notable opportunities and threats can be linked together as key aspects which the company can utilize in achieving its goals and mission in the toy business. According to Schultz and Hatch, while the company has been widely acclaimed all over the world for its production of toys and other children products, there has been a decline in the sales of its traditional toys which constitutes the largest part of their products, due to the increasing attention of children on devices from other companies, that are more electronic (21).

The other biggest threat of the group is the growing number of giant competitors, who are utilizing every opportunity possible to thrive in the industry, thus making it one of the most competitive sectors in the world (Johnson 11). However, Lego Group has always seen these threats as opportunities for further developments in business.

New developments and increase on products has always remained the biggest opportunity to the company. More importantly, as a result of the rapid competition in the market, the company has managed to come up with numerous categories of products, a key strategy which has enabled it to be able to meet the needs of children in the modern era of technology.

Porter’s five forces analysis is observed to have a significant impact on a business, in relation to elements of the external environment (Michael 13). These forces include level of rivalry, power of suppliers, threat of entrants, power of buyers, and threat of substitutes. Each of these five forces is considered individually in assessing and analysing the external environment of the company in this case.

Level of rivalry

The level of rivalry is quite intense and strong for the Lego Group. While it is clear that the company enjoys a strong position in the industry, with relatively few giant competitors, it should be considered that they are taking part in a broader market of toy production, which also includes key players in the electronic sector, such as Sony and Nintendo, among others (Martin 84).

Power of suppliers

The company, whose main products are largely based on standardised inputs, has an average power of suppliers. However, it should be noted that, the power of suppliers is likely to go up, in case the company decides to major in more sophisticated areas of productions, such as games or films.

Power of buyers

The power of buyers is relatively high for the Lego Group, with minimal costs between alternative products.

Threat of entrants

As it would be expected, the toy product industry normally requires huge investments of time and money, in a number of ways that include things such as business capital, research funds, and development costs. All these serve as obstacles to entry in the industry, thus restricting the number of new entrants in the sector. In that case, there is a relatively low threat of new entrants in the wider entertainment market, and this offers the Lego Group a much stronger bargaining power over majority of its competitors in the market.

Threat of substitutes

This is arguably one of the biggest threats facing the entertainment product company today. Even though the company is said to have developed electronic products such as video and games, there is still evidence that some of the company’s products are still made in the traditional form. This has the meaning that, the company is faced by a big threat, given that users are likely to substitute between traditional toy and gaming products through to the ones that are made into electronic features.

It is also apparent that the Lego group has touched many people with its products and services in the entertainment sector. Through the engagement of the right people in its management and productivity systems, the company has made a big success in its mission and objectives in business (Beal 29).

As it would be observed in the above internal and external analyses, the company has tried to implement a number of strategies, in order to influence and attract people on their products. Through these interventions, the company has successfully managed to impact a large number of people from all over the world, with both electronic and alternative traditional products for children entertainment. Among other key players in the market, the company has a high interest on its stakeholders and the community.

The firm recognises these as the people who play the greatest role in helping them achieve their business goal and for that reason it treats them with much respect. Both the shareholders and the people from the diverse community have a positive impact to the company’s financial interest and what motivates them most is to get nothing less of the best from the company. In that respect, the Lego group is fully engaged in putting the necessary efforts which are needed to satisfy these significant groups.

The Lego group is arguably one of the most successful companies in the toy manufacturing industry. Through a wise interaction of its internal and external systems, sustained by the effective management, the company has gained a sustainable competitive advantage over many of its rivals in the market.

However, there are numerous strategic directions which the product company can utilize, to be able to maintain a more sustainable competitive advantage over its rivals.

The Lego Group may have amassed great reputation and success in the entertainment sector, but changing the company into an all-time winner in the global toy market is something that would require much effort, from the company (Schroeder 54). Some of these efforts would tend to involve numerous aspects of strategic management, whose significance in business has often been underestimated.

Some of the strategic directions which the company can incorporate in its operation systems would include; a focus on international opportunities, expansion of digital systems and strategies, constant focus on cost, expansion of target markets, widening of product range, and focus on effective online distribution strategies.

The Lego Group may have made significant attempts in trying to incorporate some of these strategies in their routine business operations, but there is still room for improvement which can be achieved by revising these strategies over and over, to eliminate all the problems which continue to pose a big challenge to the company’s productivity and accountability in children’s toy and entertainment products (Morgan 45).

For instance, the company should focus on the many opportunities provided by the international community and try to utilize them effectively. A good way of achieving this goal is by ensuring that the toy products are manufactured and distributed in all regions of the world, where they are needed most by families, as a key engagement for their little ones.

It should also be considered that, things are changing with the times nowadays and in that respect, expansion of digital systems and strategies is very crucial for the development of the company to fit in the demands of the modern era, which is defined by technology (Cooper 75). To be able to comply fully with this call of modernity, the company should try to ensure that all their products are made into electronic features, to fit the growing demands of technology (Laudon and Traver 18).

It is also necessary for the company to make a constant focus on cost matters, to ensure that there is a two-sided benefit between the producer and the consumers. More importantly, there is also the need for the Lego Group to conduct extensive research on new developments to widen its product range.

Through a corporate level strategy aimed at increasing international coverage and product diversity, the company would be certain to realize more sales and profits out of its toy products. The company should also consider the vast potential business opportunities that are offered by the upcoming trend of e-commerce, and try to utilise these online mediums as effective distribution channels for their wide range of products.

Apart from these strategies, the Lego Group should also try to make good use of other strategic tools in today’s dynamic business world, such as important business information that would provide them with good lessons on how to achieve and uphold a sustainable competitive advantage in business affairs. All these strategies, sustained with the magical touch of an effective organizational management style are likely to bear promising results in the future operations of the company.

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Cooper, Robert. “New products: the factors that drive success.” International Marketing Review 11. 1 (1994): 60-76. Print.

Claus Brian, Riggs Neil & Sekeran Hari. Development of a low cost instructional platform for submersible design: Electrical and Computer Engineering . New York: IEEE, 2009. Print.

Dyllick, Thomas & Hockerts Kai. “Beyond the business case for corporate sustainability.” Business Strategy and the Environment 11 (2002): 130-141. Print.

Hatch, Mary and Schultz, Majken. “Toward a theory of brand co-creation with implications for brand governance.” Journal of Brand Management 17 . 8 (2010): 590-604. Print.

Hicks, Mark. “Collaborate to innovate?: getting fresh small company thinking into big company innovation.” Interactions 17. 3 (2010): 39-43. Print.

Hölzl, Werner. The evolutionary theory of the firm:Routines, complexity and change . Vienna: Vienna University of Economics and Business Administration, 2005. Print.

Irani Zahir, Sharif Amir & Love Peter. “Transforming failure into success through organisational learning: an analysis of a manufacturing information system.” European Journal of Information Systems 10. 1 (2001): 55-66. Print.

Johnson, Whittington. Exploring Strategy . Harlow: Pearsons Education, 2011. Print.

Laudon, Kenneth and Traver, Caroh. E-Commerce Business, Technology, Society . Boston: Adison Wesley, 2008. Print.

LeGoff, Daniel. “Use of LEGO as a therapeutic medium for improving social competence.” Journal of Autism and Developmental Disorders 34. 5 (2004): 557-571. Print.

Martin, Fred. Circuits to control: Learning engineering by designing LEGO robots . Cambridge: Massachusetts Institute of Technology, 1994. Print.

Michael, Porter. Commerce Strategy . Boston: Freepress, 2004. Print.

Morgan, Gareth. Images of Organisations. London: Sage Publications, 2006. Print.

Oliver, David and Roos, Johan. “Decision-making in high-velocity environments: The importance of guiding principles.” Organization Studies 26. 6 (2005): 889-913. Print.

Schau, Hope. “How brand community practices create value.” Journal of Marketing 73. 5 (2009): 30-51. Print.

Schroeder, Jonathan. Brand culture . United Kingdom: Taylor & Francis Publishers, 2006. Print.

Schultz, Majken and Hatch, Mary. “A cultural perspective on corporate branding.” Brand culture 13. 5 (2006): 17-26. Print.

Simoes, Claudia and Dibb Sally. “Rethinking the brand concept: new brand orientation.” Corporate Communications: An International Journal 6. 4 (2001): 217-224. Print.

Stacey, Ralph. Strategic Management and Organisational Dynamics . London: Pitman Publishing, 1993. Print.

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  • March 29, 2023
  • Lego in China , toys market in china

With almost 300 million kids under the age of 18 in 2023, the Chinese toy market is extremely profitable, and reached a revenue of more than 18.9 billion USD in 2022. Lego is among the major players in this sector, holding over 43% of the market share in the construction toy category as of 2021. Due to its marketing strategy and its ability to perfectly blend with the local cultural background, Lego is gaining lots of success in China, recording a 17% growth in revenue in 2022, reaching 3.5 billion USD . Lego is continuing to invest in building brick-and-mortar retail stores nationwide, with plans to open 145 new stores around the world, most of which would be in China.

From zero to hero: the history of Lego in China

The history of Lego (乐高) in China begins in 1993 , when the Danish company opened its first store in Beijing. At that time, keeping a stable price over time was an extremely difficult challenge because the government imposed heavy taxes on every imported toy. Lego was considered a luxury item during that period, especially because of the sudden variations in the products’ retail prices. Back then, intellectual property rights didn’t exist in China, therefore, many industries tried to copycat the company’s products and sell them at lower prices. Lego survived to this ruthless competition and, in 2021, became one of the biggest toy producers in the country and in the world .

Huge investments show Lego’s long-term commitment to the Chinese market

Lego’s success in China can be largely attributed to the company’s significant investments in the country, particularly in opening new stores. In 2021 alone, out of 165 Lego stores opened across the globe, 90 were situated in China. This trend has continued in 2022, with 46 new store openings in the first six months of the year. The Danish company has also targeted lower-tier cities , which represent a significant portion of the Chinese consumer base. In fact, out of all the stores owned by Lego in China, around 40% are located in 2 nd and 3 rd tier cities. Lego’s expansion policy continues to this day. As of 2023, the company has more than 380 retail stores across China, and plans to open 80 new stores throughout the year.

Lego’s expansion in China: investments in retail, amusement parks, and manufacturing

Retail stores account for just a little part of all Lego’s investments in China. Partially due to the 2021 three-child policy , Lego began to ramp up investments in China. That same year, the Danish company announced the construction of one of the world’s largest Legoland resort , based in Shanghai. The park is estimated to cost about 550 million USD and it will be fully opened by 2024.

Lego is actually building three Legoland resorts in China simultaneously: beyond the one in Shanghai, other two big amusement parks will be opened in Shenzhen and in Sichuan. The Shenzhen-based Legoland , whose opening is due to 2024, will be the largest in the world, with a surface of around 580,000 square meters and a cost of more than 1 billion USD. Instead, the Sichuan resort will open in October 2023.

In addition to the investments in Legoland resorts, the group is also enhancing its production plants in the country. At the beginning of 2022, Lego announced the expansion of the manufacturing facility in Jiaxing  (Zhejiang province). Opened in 2016, the factory will increase its size by 42,000 square meters. Although the project is well underway, it’s not expected to be completed until 2024.

Shanghai Legoland resort

Lego’s marketing strategy in China shifts to e-commerce and sustainability

For the past few years, Lego has been focusing on digitalizing every aspect of its business in China. After the pandemic, Lego has started a new phase of its digital transformation aiming to improve customer experience by collaborating with the biggest digital platforms, as well as investing for upgrading their products. To engage more with its customers, Lego began to develop its omni-channel retail ecosystem, as well as to sign partnerships with e-commerce platforms.

In 2020 , The Danish company first renewed its strategic partnership with the tech giant Tencent : the two parties showed commitment to enhance the digital play experience and child safety while playing online videogames. Lego also invested in creating more eco-friendly set pieces. In 2021 , the company revealed a prototype brick created by using recycled PET bottles and announced its goal to reduce reliance on non-renewable materials. Additionally, the company committed to achieving 100% sustainable packaging by 2025. 

Lego is enhancing brand awareness in China

One of the most important events for Lego over the latest years was its participation to the China International Import Expo ( CIIE ). The Expo represents the perfect occasions for foreign companies to find local partners and stakeholders. In 2022, Lego celebrated the 90 th anniversary since its foundation with the initiative “ 90 years of play ”. Moreover, to underline how much families and children mean for the company, Lego built a 78,700 bricks playground on its CIIE pavilion. They also did not forget to celebrate the Chinese culture and traditions, and released five Lego sets representing Chinese festivities and symbols, such as the “Chinese Lunar New Year Display”, the “Lunar New Year Parade”, and the “Money Tree”. The Danish company is not new to this Expo, as it was its 5 th consecutive year of participation. During the 2021 CIIE, Lego released other seven new sets, three of which inspired by Chinese culture.

Lego in China: CIIE

Lego aims to build a better future for the next generations

While the 5 th Shanghai CIIE was taking place, Lego also announced a strategic partnership with the China Development Research Foundation called “ prescription for play ”. The program consists in supporting the development of parental behaviors by making children learn how to play at home. The Covid-19 pandemic heavily affected the vision of Lego’s marketing strategy in China, which is now also focusing on building safe spaces for children and their families. Apart from distributing playing materials and bricks to local healthcare centers, the initiative will provide in-depths instructions for an improved and healthier parent-child relationship.

In 2021, Lego continued its tradition of collaborations at the Shanghai Expo by partnering with the the Shanghai Chenshan Botanical Garden to involve more children in sustainability. The project provided children with the opportunity to share their ideas on what a sustainable future would look like. For the event, the company also built an installation consisting in a 2.5 tons installation called the “ garden of creativity ”.

Exploring Lego’s initiatives in China: sustainability, creativity, and innovation

Between the end of 2022 and the beginning of 2023, Lego has launched two big events on Weibo , the famous Twitter-like Chinese platform. In September 2022, the company launched the campaign “ Small World Creates Big Ideas ”. The initiative was an immersive experience aimed to encourage children to create a better and more colorful world. The campaign was launched along with a video of some children using their creativity to build every sort of Lego construction in the real world. The marketing campaign aimed to demonstrate how adding Lego bricks can transform the appearance of buildings such as houses, schools, and benches in Shanghai. This project proved to be a successful strategy for Lego. As of 2023, the official hashtag of the campaign ( #小世界造出大创想# ) vaunted more than 1 million views on Weibo.

Lego's marketing strategy in China: campaign

Lego’s latest initiative was announced on March the 10 th 2023, when a Lego technic supercar exposition video appeared on the official Weibo account of the company. The exhibition took place from March the 11 th to March the 29 th in Shanghai and attracted waves of Lego and supercar enthusiasts. The show not only hosted more than 30 vehicles, including 8 new Lego products, but it also collected the works created by Lego fans. The project was designed for children too, inviting them to create their own race cars in the Lego’s workshop. The Weibo hashtags launched by the Danish company have collected tons of views in just a few days. The hashtag “Lego Technic” ( #乐高机械组# ) reached almost 14 million views , while “Supercar Real Player” ( #超跑真玩家# ), the official hashtag of the initiative, gained more than 1.9 million views .

Lego Technic supercar exhibition

Lego’s expansion and marketing strategies in China

  • Lego has a significant presence in China’s toy market, holding 43% of the construction toy market share in the country.
  • The company has invested heavily in China, particularly in offline retail stores. As of 2023, the company already has 380 stores spread across China.
  • Lego targets Chinese families as its primary consumer base, and it is building 3 huge Legoland resorts, which are due to open between 2023 and 2024.
  • After the pandemic, Lego has started a new digitalization process focused more on improving the e-commerce retail system and the sustainability of its products.
  • The Shanghai CIIE represents an annual opportunity for Lego to show its new products and engage more with its consumers. During the 4th and the 5th edition of the Expo, the company also celebrated the Chinese culture and tradition by releasing Chinese-New-Year-themed Lego sets.
  • During the 2021 and 2022 CIIE, Lego signed strategic partnerships with the China Development Research Foundation and with the Shanghai Chenshan Botanical Garden to create a safer play environment for children and introduce them to the concepts of sustainability. 
  • Lego’s marketing strategy in China does not end here. Recently, Lego launched two huge campaigns on Weibo aimed to increase its brand awareness. Both projects had the objective of stimulating children’s creativity, the first one through improving already-existing buildings with Lego bricks, and the other with “Do It Yourself” Lego supercars.

Author: Lorenzo Linguerri

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Lego (a): the crisis description.

As this case opens, iconic toymaker LEGO stands on the brink of bankruptcy. Jorgen Vig Knudstorp, LEGO's young and newly appointed CEO, must size up changes in the toy industry, learn from the company's recent moves, and craft a strategy that will put LEGO back on track.

Case Description LEGO (A): The Crisis

Strategic managment tools used in case study analysis of lego (a): the crisis, step 1. problem identification in lego (a): the crisis case study, step 2. external environment analysis - pestel / pest / step analysis of lego (a): the crisis case study, step 3. industry specific / porter five forces analysis of lego (a): the crisis case study, step 4. evaluating alternatives / swot analysis of lego (a): the crisis case study, step 5. porter value chain analysis / vrio / vrin analysis lego (a): the crisis case study, step 6. recommendations lego (a): the crisis case study, step 7. basis of recommendations for lego (a): the crisis case study, quality & on time delivery.

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Case Analysis of LEGO (A): The Crisis

LEGO (A): The Crisis is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. LEGO (A): The Crisis is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. LEGO (A): The Crisis case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. LEGO (A): The Crisis will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

LEGO (A): The Crisis case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of LEGO (A): The Crisis, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The LEGO (A): The Crisis case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, LEGO (A): The Crisis case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – LEGO (A): The Crisis

Step 1 – Problem Identification of LEGO (A): The Crisis - Harvard Business School Case Study

The first step to solve HBR LEGO (A): The Crisis case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Lego Jorgen is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Lego Jorgen, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the LEGO (A): The Crisis. The external environment analysis of LEGO (A): The Crisis will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in LEGO (A): The Crisis case study. PESTEL analysis of " LEGO (A): The Crisis" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with LEGO (A): The Crisis macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for LEGO (A): The Crisis

To do comprehensive PESTEL analysis of case study – LEGO (A): The Crisis , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact LEGO (A): The Crisis

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ LEGO (A): The Crisis ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Lego Jorgen is operating, firms are required to store customer data within the premises of the country. Lego Jorgen needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. LEGO (A): The Crisis has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Lego Jorgen in case study LEGO (A): The Crisis" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Lego Jorgen in case study “ LEGO (A): The Crisis ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Lego Jorgen in case study “ LEGO (A): The Crisis ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ LEGO (A): The Crisis ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Lego Jorgen can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at LEGO (A): The Crisis case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Lego Jorgen needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact LEGO (A): The Crisis

Social factors that impact lego (a): the crisis, technological factors that impact lego (a): the crisis, environmental factors that impact lego (a): the crisis, legal factors that impact lego (a): the crisis, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: lego (a): the crisis case study solution.

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Lego In China: A Case Study For Any Toy Brand

lego marketing case study

In 2015, Lego, the Danish toy manufacturer famous for its plastic brick toys, ventured into China’s vast toy market. Despite encountering various difficulties and obstacles, the company persevered and achieved remarkable success.

In this blog post, we will explore Lego’s approach to entering the Chinese market and their strategies for overcoming cultural differences, intellectual property issues, and competing with local brands. By examining Lego’s case study in China, we can gain useful insights into effective marketing strategies that any toy brand can use when expanding into new markets. So let’s dive in!

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Brief Background On Lego

lego marketing case study

Ole Kirk Christiansen founded the company in 1932, producing wooden toys in a small workshop. Despite facing financial difficulties in the early 2000s that led to bankruptcy, CEO Vig Knudstorp’s leadership implemented a successful turnaround strategy, leading to Lego’s impressive recovery .

Lego divested non-core businesses and focused on their expertise, providing engaging building block experiences for their audience. This strategy made Lego synonymous with creativity and learning for kids worldwide .

Lego’s Entry Into China

Lego entered the Chinese market in 1993 through a joint venture, but only established a separate entity, Lego China, in 2016 to oversee and expand its operations in the country.

Initial Approach And Business Model

lego marketing case study

Lego implemented a unique and well-thought-out business model upon entering the Chinese market.

One key element of this approach was partnering with local retail giants such as Tencent and Alibaba , enabling them to expand rapidly while leveraging existing e-commerce infrastructure.

This move helped secure more favorable pricing due to lower import taxes on their products, which is a challenge that many foreign toy brands face when entering China’s competitive landscape.

Market Positioning Strategy In China

lego marketing case study

The key to their success was investing in creating an appealing and unique brand experience for consumers. They opened numerous flagship stores in major cities and expanded to cities with potential growth.

Additionally, Lego targeted educational institutions by incorporating their products into classrooms, establishing themselves as both a learning tool and an entertaining toy for children.

Collaborating with Tencent allowed them to target a valuable demographic of about 200 million children in China through digital platforms such as games and online applications.

Lego’s Challenges In China

Lego faced numerous challenges in China, from navigating cultural differences to dealing with intellectual property issues and competing with local brands.

Overcoming Cultural Differences

lego marketing case study

To achieve success in a new cultural environment, it is crucial to understand and appreciate cultural differences.

Lego accomplished this by conducting extensive research on local customs, preferences, and social norms, and partnering with local organizations to gain insight into the market’s nuances while building brand awareness.

Additionally, being flexible when adapting to new cultural environments is essential. For example, using Chinese celebrities as brand ambassadors instead of global ones can increase credibility and trust among local consumers.

Intellectual Property Issues

lego marketing case study

Lego faced challenges related to intellectual property (IP) when entering the Chinese market due to copyright infringement issues from local competitors.

However, the company has navigated these issues successfully through legal action against infringing parties, resulting in a recent ruling in favor of Lego against Bela.

This victory could lead to greater profits for Lego and encourage other foreign IP holders to enforce their rights in China.

Overall, it is clear that understanding how best to protect intellectual property is essential for any toy brand hoping to succeed in China’s competitive marketplace.

Competing With Local Brands

lego marketing case study

Lego faced tough competition from local brands like Sembo Block in the highly competitive Chinese toy market . These brands offered similar but cheaper products, making it challenging for foreign brands to enter the market.

Lego had to differentiate its products by emphasizing their unique features and quality.

Successful Strategies For Lego In China

Lego’s successful strategies in China include localization of products and marketing, partnering with local companies for collaborations, building a solid e-commerce strategy, and establishing Lego education centers.

Localization Of Products And Marketing

One of the key takeaways from Lego’s success in China is the importance of localization . Here are some strategies that worked for Lego:

  • Understanding local culture : Lego studied the local culture and preferences to customize its products and meet the needs of consumers.
  • Localizing marketing strategies : Lego changed its marketing approach in China by creating campaigns that were relevant to Chinese culture and events.
  • Customizing product offerings : Lego-made products for China that included sets inspired by famous Chinese landmarks and characters from popular TV shows.
  • Partnering with local companies : Working with local companies helped Lego gain trust and connect with customers.
  • Providing localized customer service : Lego offered customer services that were specific to each location, such as Mandarin-speaking representatives and personalized responses to customer questions, to make sure customers were happy.

Overall, localization was crucial to Lego’s success in China as it allowed them to effectively compete with domestic brands and connect with Chinese consumers.

Partnering With Local Companies For Collaboration

lego marketing case study

Lego’s success in China was due in part to partnering with local companies , such as Tencent, to tap into their customer base and gain credibility.

The partnership with Tencent also allowed Lego to develop a safe digital play experience for children while leveraging Tencent’s expertise in China’s digital market.

Partnering with local companies can help toy brands overcome cultural barriers in foreign markets, especially in countries like China where cultural values greatly influence consumer behavior. This strategy can provide valuable insight into local customs and help toy brands tailor their marketing messages accordingly, ultimately leading to greater success in the market.

Building A Solid E-commerce Strategy

lego marketing case study

To succeed in China, having a strong e-commerce strategy is crucial as over 50% of the population is online and 75% of consumers shop online .

Lego partnered with top Chinese e-commerce platforms such as Tmall and JD.com to sell their products directly to customers. They also optimized their website for mobile users to tap into the growing trend of mobile commerce.

Lego leveraged social media platforms like WeChat and Sina Weibo for targeted advertising campaigns , resulting in higher engagement rates among consumers.

Establishing Lego Education Centres

lego marketing case study

Lego’s successful strategy in China involves the establishment of Lego education centers that offer classroom learning through interactive play , connecting with Chinese parents who value educational toys. The centers have helped build a strong following for Lego in China by tapping into cultural values and priorities beyond retail expansion and marketing strategies alone.

Additionally, hiring a design team with no toy-making expertise was also part of their successful formula for growth in China. This highlights the importance of innovation and thinking creatively outside the box when entering new markets.

Case Analysis: What Worked And What Didn’t For Lego In China?

Analysis of the successes and failures of lego’s approach.

The brand experienced both successes and failures in China due to cultural differences , intellectual property issues, and competition from local brands. To overcome these obstacles, Lego localized its products and marketing strategies , partnered with local companies, and established e-commerce channels, and education centers across China.

Lego’s strategies in China were successful, but there were still areas for improvement. While the company had a strong global reputation for quality, some Chinese consumers were concerned about product safety due to incidents with other toy brands in the past.

Overall, the case study highlights the importance of understanding the audience and navigating cultural complexities in a competitive market like toys.

Lessons For Toy Brands

Importance of understanding local culture.

Successful brands understand that being culturally sensitive is important for gaining consumer loyalty.

Lego is an example of a brand that has adapted its marketing strategy in China by creating sets that reflect Chinese history and literature, such as the Forbidden City and Journey to the West series.

Understanding cultural diversity is also important in avoiding mistakes that could harm a brand’s reputation.

To adapt to different cultures, research into consumer behavior, beliefs, values, and customs is necessary to design effective campaigns that resonate with the target audience without causing offense or misunderstanding.

Building Brand Trust And Maintaining A Strong Reputation

Maintaining a strong reputation and building brand trust are crucial for toy brands in the global market. Lego has achieved success by focusing on quality, innovation, and staff training.

Toy brands must ensure that their products are manufactured to high standards and distributed globally consistently, and invest in corporate branding to establish trust with consumers and provide top-quality products.

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In conclusion, Lego’s journey in China offers valuable insights for any toy brand looking to enter the Chinese market. It highlights the importance of understanding the local culture, building strong partnerships, establishing e-commerce strategies, and navigating Intellectual Property issues.

lego marketing case study

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lego marketing case study

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HBR On Leadership podcast series

How Etsy Became Profitable — Without Sacrificing Its Purpose

If you’re trying to define your organization’s purpose, this episode is for you.

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Etsy, the online seller of handmade and vintage goods, was founded as an alternative to mass-manufactured products. The company grew substantially in its first decade but remained unprofitable.

When Etsy went public, stakeholders demanded a new level of financial returns and accountability. But the company continued to struggle to contain costs—until a new CEO arrived with a plan for a purpose-driven turnaround.

In this episode, Harvard Business School professor Ranjay Gulati discusses his case, “Etsy: Crafting a Turnaround to Save the Business and Its Soul,” which explores how CEO Josh Silverman made Etsy profitable by rediscovering the company’s commitment to social and environmental sustainability.

Gulati discusses the difficult choices Silverman made in the early days of his tenure, like laying off employees for the first time ever at Etsy, and how he worked to regain trust with employees. He also explains why Silverman prioritized improving the user experience for buyers on Etsy’s website.

Gulati is the author of the book Deep Purpose: The Heart and Soul of High-Performance Companies .

Key episode topics include: leadership, change management, organizational culture, organizational transformation, strategy, retail and consumer goods, online retail, purpose, sustainability.

HBR On Leadership curates the best case studies and conversations with the world’s top business and management experts, to help you unlock the best in those around you. New episodes every week.

  • Listen to the original Cold Call episode: How Etsy Found Its Purpose and Crafted a Turnaround (2022)
  • Find more episodes of Cold Call
  • Discover 100 years of Harvard Business Review articles, case studies, podcasts, and more at HBR.org

HANNAH BATES: Welcome to HBR On Leadership , case studies and conversations with the world’s top business and management experts, hand-selected to help you unlock the best in those around you. Etsy, the online seller of handmade and vintage goods , was founded in 2005 as an alternative to mass-manufactured products. The company grew substantially in the coming decade, but remained stubbornly unprofitable. Then Etsy went public, and stakeholders demanded a new level of financial returns and accountability. But the company continued to struggle to contain costs until a new CEO arrived with a plan for a “purpose-driven turnaround.” In this episode, Harvard Business School professor Ranjay Gulati explains how CEO Josh Silverman made Etsy profitable and rediscovered the company’s soul by focusing on its social and environmental impact  You’ll learn why Silverman focused on improving the user experience for buyers on Etsy’s website. You’ll also learn how he made difficult choices in the early days of his tenure – like laying off employees for the first time ever at Etsy and   with his employees afterward. This episode originally aired on Cold Call in March 2022. Here it is.

BRIAN KENNY: The results are in, and they are worrisome. The 2022 Edelman Trust Barometer, which rates societal trust in business, government, the media, and NGOs, finds that distrust is now society’s default emotion. 49% of the 36,000 respondents around the world believe that government and media fuel a cycle of distrust. Business, by comparison, fares well with 61 percent saying it is the most trusted institution, but with that trust come expectations. Respondents believe that business is not doing enough to address societal issues like climate change and economic inequality. They think that societal leadership should be a core business function of any CEO and they want business leaders to be visible on those issues. It seems like the CEOs’ job description just got a little bit more complicated. Are they up for the challenge? Today on Cold Call , we’ll discuss the case entitled, “Etsy: crafting a turnaround to save the business and its soul,” with Professor Ranjay Gulati. I’m your host, Brian Kenny, and you’re listening to Cold Call on the HBR Presents Network. Ranjay Gulati is an expert on leadership, strategy, and organizational issues in firms. His new book is called Deep Purpose: The Heart and Soul of High- Performance Companies , and I know the case we’re going to talk about today relates directly to the ideas in your book. Ranjay, thanks for joining me.

RANJAY GULATI: Brian, thank you for having me. I’m delighted to be here with you today.

BRIAN KENNY: Listen, I love Etsy. I use them frequently. I won’t let that, in any way, make me lean in one direction or the other, but I really enjoyed reading the case. I’m sure a lot of our listeners have used Etsy as well and there’s some insights that come across here that I think will be really interesting for them. And of course, we want to talk about how this relates to the ideas in your new book. Congratulations, by the way, on the recent launch of that. So why don’t we just dive in? You ready?

RANJAY GULATI: Yes, absolutely. Let’s dig into the case, roll up our sleeves, and I’m ready to be cold called myself and be on the other end of this. Normally I’m the one cold calling my students.

BRIAN KENNY: I love it, great. Well, I want to start right there. Tell me what the central theme of the case is and what your cold call would be to start the discussion when you step into the classroom.

RANJAY GULATI: Well, when I start the case discussion, I start by right away taking the students into the shoes of the protagonist. And I say, “If you were Silverman, Josh Silverman, who has been a Board member, has been offered the job to be CEO of this company. And they’re going to fire Chad Dickerson, the CEO.” And the question I ask is, “Would you take this job?” And of course, the class gets split. I’d say 60 percent or so take the job. And about 40 percent say, “No, I won’t take the job.” And of course, for me, that’s great fodder because now I go to the ones who say, “No, I will not take this job.”

BRIAN KENNY: I’m always interested in how and why faculty decide to write certain cases. Etsy’s a pretty well-known organization. How did this idea come to you and how does it relate to your research and the ideas in your book?

RANJAY GULATI: I did not know what Etsy was doing. Actually, I thought of Etsy as a negative story because the media reporting of it was, here’s a company that lost its soul. It had this socially minded ideal, they were going to do all these great things, and then the dark side of capitalism took over. Destroyed all their mission and social orientation, fired all these people, and these people were vocal in the media. The media went after them. And so, to me, I thought this was going to be me a great story on the dark side of capitalism. I was looking for negative stories, and the more I dug into it, the more I found there was a story behind the story. The subtitle of my book is The Heart and Soul of High Performance Organizations. That’s what I wanted to know was, what do companies that do really well today do? And performance is defined both financial performance, I’m not taking that away at all, but are also able to … Let’s put it this way, accomplish what you might loosely call social performance as well. But I was not looking for trading off one for the other. And here was a company that had done financially very well under Josh, and as I found out, they had also sharply focused their social impact and done extremely well with that as well. If anything, the old Etsy, as I discovered, had a lot of challenges on both dimensions with it. And to me, that was the interesting insight, to see how did this company walk what I call the razor’s edge and make trade offs? They transformed themselves and they used having a purpose as the pivot point to do so.

BRIAN KENNY: I think people are skeptical about this notion of purpose when it comes to business. What do you think stakeholders, employees, customers, shareholders, what do you think they’re looking for from business and business leaders today?

RANJAY GULATI: Everyone expects more from business leaders today. More in terms of not just economic return, but also, as you said, other impact. What is your positive impact on the community and the environment and on society at large? Now, in that context, I want to clarify to you, purpose is not a purpose statement. I think that’s what plays into the cynics, where companies start to parade some kind of noble minded purpose statement. They’ve hired some communication consulting firm to craft it for them and they put it out there. If you told me five years ago I was going to write a book on purpose I would’ve told you you’re crazy, because to me, that’s how I thought of purpose. And as I was writing this book, I wanted a one word title. I said, “Oh, one word, titles sell.” So I wanted to call it Purpose. And then, as I wrote the book, I realized I had to call it Deep Purpose because so many companies practice what I call a shallow purpose. Now, if purpose is not a statement, what is it? Purpose is an intention. It’s an orienting frame of reference for who I am and why am I here? I had to first understand, what is purpose? On which there’s a lot of confusion, purpose has been hijacked by a lot of people. Why is it important financially, even? For companies. So let me make the economic argument for purpose. And then the third one, which is the hardest element, was the, how do you do it? And Etsy gave me all three. Etsy allowed me to clarify that purpose involves navigating economic and social benefit. It allowed me to think about how it benefitted Etsy. And also allowed me to see how a company actually embeds purpose into the organization.

BRIAN KENNY: Do you have a, before we dive into Etsy and the specifics of what they did, just so our listeners are thinking about it in context, how do you define a deep purpose leader? Is there an easy definition for that?

RANJAY GULATI: I think a deep purpose leader who is centered around a clear … anchored, centered around a clear sense of, why are we here? What is our objective? And they reference that on everything they do. They’re centered around that. That’s the first piece of it. The second piece of it I talk about is these are leaders who are not only bought into it themselves, but they recognize that they have to communicate this ideal in a compelling way. In what we call a big story way. They have to personify it themselves and embody and live it. They have to look for ways to then make sure it is resonant in the organization. So they are the carriers of this purpose. They need to understand that. That’s one big chunk of it. You are chief purpose officer. The other part of it, that I think is very, very important to understand, is that purpose involves making trade-offs and choices. Hard choices. So Josh had to lay off almost 200 people. And he had to shut down the values and purpose … the values team. And the day before he did that, he went for a walk with his daughter, he said. And he told her, he said, “Listen, I’m about to do some things that are going to make me look really bad in the news and you may hear about it from your friends and you’re going to hear all kinds of things about me. I just want you to know that what I’m doing is all on the right path. I’m doing it for the benefit of this enterprise and for its customers and for the community, but it’s not going to come across that way.” And so these are hard places to be. You asked earlier, why are businesses not stepping up and saying more? Business leaders today need to understand that sitting on the sidelines on any charged issue and saying, “I’m neutral,” is not an option. You can’t say, “That’s not me. I can’t take a stand on Black Lives Matter. I can’t take a stand on voting rights. I can’t even take a stand on gun rights. I can’t take a stand …” and these are politically charged issues that are very divisive in our society today. And fortunately, or unfortunately, society, customers, and employees demand their leaders to take a stance on some of these issues.

BRIAN KENNY: All right, well, let’s talk about Etsy because there was some rebellion that was happening there. And I think, for the few listeners out there who haven’t used Etsy and are unfamiliar with it, can you just describe what business they’re in? What do they do?

RANJAY GULATI: So Etsy’s origins were really to be a marketplace for crafts. And Bob Kalin, the founder, was himself a craftsman and he had this ideal of handmade, craft made things. As opposed to machine made, industrial production. So he had this ideal that, I want to have craft people sell their wears in a very economical way and not have to pay large margins to some middle person. So he was going to make a low margin, but easy for sellers. A beautiful idea. And the thing took off. It was really a remarkable story, based on an ideal. But that ideal later came back to be a challenge for them because, in any marketplace, there are sellers who this company deeply cared about. But there are buyers too. So they had a blind spot. They never thought much about the buyer experience. Of course you have to think that, for sellers to sell, you need buyers. So how are you going to make search easy for them? The transaction easy for them? The way Amazon has done for everybody else. But in the beginning there was no competition and so this thing just took off.

BRIAN KENNY: Yeah and to talk a little bit about Rob Kalin’s background, he wasn’t a business person, but he was a person with a good idea. But how did the culture sort of evolve under his leadership?

RANJAY GULATI: So I think it’s important to distinguish the word idea from ideal. He had both. There was an idea, that there is a marketplace for crafts, that’s the idea. But the ideal was, how can I help crafts people bring their wares to market and make a livelihood out of pursuing a craft? And the culture of the place, if you can imagine, was an extension of the founder. A lot of founder-led enterprises are basically, the founder is larger than life. Their persona permeates the whole organization, the culture, the beliefs. I can imagine it being a very idealistic place, focused on these sellers and supporting them in any way they could.

BRIAN KENNY: So in some ways, it was almost like a mission driven organization. We always think that nonprofits are mission driven and business is profit driven. But this sounds like it was leaning more towards the mission driven ideal, as you’re describing it.

RANJAY GULATI: Absolutely. I think it was very much of a mission driven, and by the way, making money was not part of that mission. And so, you think about it, that you’re running this business, you want to make it sustaining, you want to scale it, you want to grow it. So they wanted to do that. They were really on the frontier of this idea that business can have a social mission. What that also meant was, business doesn’t have to have an economic mission.

BRIAN KENNY: We know that’s not sustainable. And I think of this case as the tale of three CEOs as I read it. Rob presides over the founding of the company and the creation of this focus on purpose and attracts people to the firm that really buy into that passionately. But at some point, the business comes calling and there’s a transition there from Rob to Chad Dickerson. Tell us a little bit about Chad Dickerson and the situation that he stepped into.

RANJAY GULATI: Chad had big shoes to fill. Anybody coming after a founder can tell you that, especially a larger than life founder, and Chad had big shoes to fill and he did them very well. He understood technology, because at this point now you’re a technology company. You’re building your technology infrastructure and platform and you’re scaling the venture. He’s the one who’s going to take it public. He was very clear that he was not trying to change the culture or what made Etsy special. He puts in place a values and impact team, he puts in place generous employee benefits that employees can have access to all kinds of recreational opportunities and other things. He is very employee centric, he’s very focused on the sellers still, and he communicates clearly to the investor world that we may not make money for a while.

BRIAN KENNY: How does that go over with the investor world?

RANJAY GULATI: It’s interesting. They manage to go public so they are able to go public with this idea that we’ll make money in the long term. Because they’ve grown fast. The idea is a powerful one and they’ve really got traction. So the top line has grown, but brewing under the hood, if you look under the hood, all these troubles come back to bite them about nine months after IPO. So I think what you have to realize, you’re a privately held company, it’s a different story. You can communicate to your limited investor pool and tell them what you’re doing and this is why I am what I’m doing. You’re now going to the public markets. The expectation set changes and I think they underestimated the complexity of their notion of social impact in a public entity. Now, at one level, again, you might say, “Okay, this was about social impact. They were having a lot of social impact.” If you look under the hood, it’s not even entirely clear how much social impact they were having because they were not really measuring themselves on social impact. They were saying they’re doing social stuff, but if you look at the pure numbers, what do you see? Their top line growth has stagnated and what has also started to happen is they’re ballooning their SG&A, their marketing spend has doubled but revenues are not growing. I teach a course on turnaround, so when we look at that, what do you say? You say, undisciplined spending. Unfocused. And so, as you start probing the organization, you discover that was what was happening. You can say I’m social, but doesn’t mean you can’t be disciplined. And this gives social a bad name also because, oh, look, all these social companies, they use it to hide behind poor performance. It’s a cloak, a virtue cloak, and public markets don’t accept that.

BRIAN KENNY: And here comes the drama, because now you’ve got a board member in Josh Silverman, who is watching this and recognizing some of the things that you just described. I mean, they’re not succeeding on the business side, they may not be having the impact that they think they’re having on the social side, so he steps in. Just talk a little bit about that dynamic of the pressure that he was putting on Chad and the team there.

RANJAY GULATI: Well, I think he said that, even as a board member, you look at the financials and you see that they are spending money in ways that are not delivering any kind of growth. The classic thing, you have resources, now you start to pursue adjacencies as we call them. Yesterday I taught the “Lego” case, about how Lego almost went bankrupt chasing adjacencies. You build a theme park, you build video games, so similarly, what’s happening here is they’ve stopped investing in the core business. They’re growing headcount, spending money, and they also … the realization was that while the sellers were really happy with Etsy, the buyers were not. They were not happy because they were not getting what they needed: an easy interface and frictionless commerce. They were not. But Etsy wasn’t focused on them. And furthermore, even the IT spend that had ballooned, and Josh being a technology guy realized, that they were building infrastructure from scratch internally. So it was backend stuff rather than customer facing stuff. But he gave it 10 percent chance of success. When I asked him in class, I said, “So when you walked into this job, what were the odds you were giving yourself of success?” And he said 10 percent.

BRIAN KENNY: Wow. That’s a very stark reality that he’s stepping into. So let’s talk a little bit about how he took on this challenge and the decisions and the tradeoffs that he had to make in the process. Can you describe that?

RANJAY GULATI:So as his CTO explained to me, and he said for the first 90 days, we were in ambulance mode. There was a reason private equity was trying to buy and take it private. There were people hovering around to essentially replace everything out. And so they were in ambulance mode. And I think one of the first things that happened … Actually, it was a very emotional moment, actually. The case talks about, on the day Josh takes over and Chad gives his farewell speech. So Chad is crying, people in the audience are crying. Along with Chad being let go, 80 people have been let go. This is the first time Etsy’s having layoffs, the values group is going to be shut down, and the employees in the company, suddenly people start to quit. So there’s attrition going up and everyone’s talking to the media saying destruction of a beautiful … It’s killing the soul of Etsy. And something else that Josh said to me, he said, “One reason I wanted to really turn around Etsy was, Etsy had always talked about being a socially minded business. I wanted to show the world that you can be socially minded and be profitable. If Etsy fails, the presumption of everybody is going to be that, see, socially minded businesses can’t be profitable.” And he said, “Here was a unique opportunity to show the world that you can be profitable and living a purpose.” So the first few months were really around fixing Etsy’s strategy. They shut down a whole bunch of technology projects that had nothing to do with the core business, that were chasing ideas here and there. They said, “We got to focus on the buyers and not just the sellers.” You would understand this better than anybody, they had to change their marketing spend saying, “Let’s really be disciplined about our marketing spend.” In this process they had to right size the organization, as they like to … Euphemism for layoffs, I’m sorry. That was painful. So imagine being Josh at this moment. You’re getting a lot of heat at this time.

BRIAN KENNY: And he’s losing the hearts and minds of the employees, which, he’s going to have to contend with at some point.

RANJAY GULATI: Exactly. And this is where you have to understand the razor’s edge about making … People like to paint this idyllic world of social impact as win-win. No tradeoffs. You can do good and make money at the same time. And he was very quick in pointing out to me that that’s an ideal. Most of life is tradeoffs. Hard choices. And so he’s got to get the operations done, he’s got to get the financials stabilized, he’s got to get the right size in the organization, spending. Those are the immediate fixes. Once gets those in place, he is now trying to map out what his plan for the future is. Now, you shut down the values and impact team, you laid off people for the first time, you are allowing our B Corp certification to lapse. You really don’t care about the company.

BRIAN KENNY: So he’s playing right into that stereotype of the uncaring CEO who comes in and is just trying to strip everything down to make money.

RANJAY GULATI: Exactly. And that’s why I wanted to study them. I was like, great, I found the dark side of capitalism. I needed to find one and here we are. Josh, you are sacrificing, as one of them said, you’re sacrificing Etsy’s soul at the altar of profit.

BRIAN KENNY: Wow. That’s heavy. All right, well, fast forward. Tell us what happens here.

RANJAY GULATI: You know, it’s interesting. Once they stabilized the company and the financials, what next comes on is that he has to now say, “I want to not lose sight of our soul.” So he says, “We’re going to do social impact, but we’re going to do measurable social impact. And what are the three things we’re going to do?” So he maps out three things. Diversity, and he said, we’re going to measure ourselves. We’re going to have 50 percent minorities in key positions by 2023. Commitment. Environmental impact, we’re going to work on that. And we’re going to work on seller economic impact. And he says, “We’re going to publish audited reports of our progress on these three.” So he wanted to convince the employees in the company that he wasn’t forgetting the soul of the company. He said, we were not. And the point he tries to convince them of, which he does successfully is, we were not delivering even on social impact, folks. We were saying we’re doing social, but we had no measurable way to do that. And we’re going to combine that with the economic impact. Now, in this process of transforming the business and trying to connect the two, he says, “Our mission, a company that is trying to deliver on economic and social, needs to be able to connect the dots through a powerful purpose statement.” And they had a complicated, long mission statement. So he rewrites the mission statement. He doesn’t do it, he puts a team in place that goes and interviews people in the company saying, “What is the mission of Etsy?” Old timers who are still there. So he’s trying to crystallize everyone’s collective aspirations into a few words. And so that becomes his next piece of the puzzle and he is going to use that statement and the process of creating it to then say, “Now let’s connect the dots with our culture. Let’s connect it with our metrics. Let’s connect it with our organization. Let’s connect it with our goals. What are we going to get done?” And it’s that transformation of a revived Etsy that understands its place in the world, “making commerce human”. Is using that to prioritize, in a very disciplined way, its resource allocation so they can grow the business profitably. At the same time, delivering measurable social impact.

BRIAN KENNY: I love that mission, by the way, “making commerce human.” What I love about it is that it has immediate meaning, but it’s also something everybody in the organization can remember and recite and connect to. And that is very rare because a lot of firms create mission statements that are almost untranslatable to most people. Ranjay, this has been a great conversation. I’ve got time just for a couple more questions before I let you go. The first would be, if you pull the lens back away from Etsy and you look across the broader landscape, and thinking about deep purpose, do you feel like we are at a moment of inflection where business leaders broadly are starting to understand that this is an important part of their role? That they have to develop this sense of purpose if they really want to satisfy all the stakeholders that they need to think about?

RANJAY GULATI: So I think the problem that has happened is, business leaders understand everybody knows that they have to serve multiple stakeholders. And purpose has become this proxy for social stuff. In fact, some people even define purpose as anything but profit. So purpose becomes a hijacked word, is it shareholder value or is it stakeholder value? And who do I have to give how much to? And I think that’s confusing because purpose, actually, I want to remind everybody, is a generative force. It’s how to make the business more productive. What is lost sometimes in this discussion of Etsy is that the purpose allows Etsy employees to behave and operate differently when they come to work. Pride elicits a greater engagement than anything can get you. Purpose has allowed Etsy to have a greater strategy, what I call directional. So the first one is motivational. A directional benefit. Clarity of strategy. Being able to make informed tradeoffs. Purpose has actually had reputational benefits, your customers trust you more, purpose-oriented branding. And the last one is, purpose is a relational construct. It allows you to connect to your ecosystem of suppliers, partners, and others, because they also feel you must be a good person. Virtuous. Purpose has economic benefits, it’s not CSR, it’s not on the periphery, and that’s why my book, again, is called, Deep Purpose. Because I saw many people getting confused and practicing what I call shallow purpose. And I think, to me, that’s the real story. That leaders need to understand, yes, you need to operate in a multi-stakeholder world. What is an easy way into this world? And purpose gives you a vehicle, a platform, a tool that you can use to energize your organization while making a very deliberate way of tackling these very complicated issues.

BRIAN KENNY: Yeah. So my final question, you may have just answered it because that was a really … That was a great, insightful statement. But as our listeners are getting ready to log off here, what’s one thing you want them to remember about the Etsy case?

RANJAY GULATI: I think the one thing I want to remember is that I was really impressed with how people at Etsy talked about their work. I think all of us should expect more from work. The Great Resignation reshuffle are showing us that, after COVID, most of us have confronted tragedy, sickness, death. And we all expect more from work. And for the longest time we have allowed work to be a compartmentalized part of our existence. My job, that’s what I do for a living. I think we all are looking for more coherence in our lives. Not just millennials. People say, “Oh, the millennials are looking for it.” I think everybody’s looking for more coherence in their life. That my work allows me to also express my own creativity, the impact I want to have in the world, what is my legacy going to be? When we allow people to do that, they show up differently. At Microsoft, the CHR, or Kathleen Hogan says, “I tell my employees, you don’t really work for Microsoft until Microsoft works for you.”

BRIAN KENNY: Ranjay Gulati, thank you so much for joining me.

RANJAY GULATI: Thank you so much, Brian, for having me here.

HANNAH BATES: That was Harvard Business School professor Ranjay Gulati in conversation with Brian Kenny on Cold Call . Gulati is the author of the book Deep Purpose: The Heart and Soul of High- Performance Companies and he hosts a podcast of the same name. We’ll be back next Wednesday with another hand-picked conversation about leadership from the Harvard Business Review. If you found this episode helpful, share it with your friends and colleagues, and follow our show on Apple Podcasts, Spotify, or wherever you get your podcasts. While you’re there, be sure to leave us a review. We’re a production of the Harvard Business Review. If you want more podcasts, articles, case studies, books, and videos like this, find it all at HBR.org. This episode was produced by Anne Saini and me, Hannah Bates. Ian Fox is our editor. Music by Coma Media. Special thanks to Maureen Hoch, Adi Ignatius, Karen Player, Ramsey Khabbaz, Nicole Smith, Anne Bartholomew, and you – our listener. See you next week.

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  1. LEGO: The Marketing Strategy Behind the Toy Industry Titan

    And despite how devastating the COVID-19 pandemic has been for many in the toy industries, LEGO's sales rose 14% in the first half of 2020 compared to the same period in 2019, with its operating profit rising 11% to $622 million. Much of this success is due to the LEGO marketing strategy, which embraces digitalization and emphasizes knowing ...

  2. How Lego clicked: the super brand that reinvented itself

    Lego Friends took four years of research (plus a $40m global marketing push) to get right. "One of the main things was they couldn't really relate to the Minifigure," says Mauricio Affonso ...

  3. LEGO Case Study: How to revitalize a beloved brand

    At the heart of the LEGO case study is a revitalization strategy that involved expanding its market reach. The company identified untapped potential in emerging markets, such as China and India, and developed targeted marketing and distribution strategies to cater to these new audiences. LEGO also recognized the importance of engaging adult fans.

  4. Innovating in existing markets: 3 lessons from LEGO

    LEGO responded in 1999 by refocusing its innovation efforts on revolutionary products that would reinvent the nature of play. "They became convinced that if all they offered was another box of bricks, they would become a commodity," Robertson said. "They believed they needed to disrupt themselves before somebody else did.".

  5. Lego Marketing Strategy 2024: A Case Study

    Furthermore, Lego has conducted a competitive analysis to stay ahead in a highly competitive industry. In this comprehensive case study, we will analyze Lego's marketing strategy and shed light on the techniques and tools the company employs to reach its customers effectively. From branding techniques to advertising tactics, we will uncover ...

  6. The Effective Lego Marketing Strategy: Building Success Brick by Brick

    In conclusion, Lego's marketing strategy is a masterclass in leveraging nostalgia, forming collaborations, embracing innovation, and engaging with its community. By tapping into the power of childhood memories, partnering with popular franchises, constantly evolving its products, and prioritizing sustainability, Lego has managed to create a ...

  7. HBS Cases: LEGO

    LEGO explores how the company-one of the most profitable toymakers in the world-grew to global dominance from humble beginnings; the mistakes that led it near bankruptcy; and why one turnaround attempt failed while a second succeeded. LEGO executives were unusually supportive about the case-writing process, Thomke says.

  8. Digital Transformation Strategy: The LEGO Case

    Abstract and Figures. The purpose of this paper is to shed light on the digital transformation of LEGO and to figure it out in innovation-oriented growth decisions. To this end, the study here ...

  9. Lego: How its marketing strategy made it the world's favorite toy

    Published Fri, Apr 27 20181:13 AM EDT Updated Thu, Apr 11 20199:23 AM EDT. Lucy Handley @lucyhandley. Share. Source: Lego. The humble Lego brick is celebrating its 60th anniversary this year ...

  10. Lego Branding Strategy and Marketing Case Study

    Hands-on Brand Strategy Help. Transform your best business thinking into an actionable, shareable, growth-oriented guide. Click below to learn about the Brand Guidebook process. Analysis of Lego's brand strategy, identity, positioning, key messages, tone of voice, brand archetypes, benefits, competitors, and content.

  11. Marketing Strategies of LEGO: Building Bricks of Success

    Archana Karthikeyan, Apoorva Bajj. Jun 19, 2023 — 8 min read. Marketing Strategies of Lego. Get ready to dive into the colorful and imaginative world of LEGO, where creativity reigns supreme and possibilities are limitless. For over eight decades, LEGO has captivated the hearts and minds of both young and old, becoming a household name and an ...

  12. LEGO

    Abstract. LEGO has emerged as one of the most successful companies in the toy industry. The case describes LEGO's gradual rise, rapid decline, and recent revitalization as it is keeping up with a changing market place. Central to LEGO's management model is the ability to find the right balance among growing through innovation, staying true to ...

  13. Innovating a Turnaround at LEGO

    David Robertson and Per Hjuler. From the Magazine (September 2009) Summary. Though the overall toy market is declining, LEGO's revenues and profits are climbing—largely because the company ...

  14. The strategy behind Lego's first global brand campaign in 30 years

    Last month, Lego revealed its first global brand campaign in 30 years. Rebuild the World, created in tandem with agency BETC in Paris is a live action-adventure film directed by multi-award winning collective Traktor aimed at sending a positive message about the power of creativity in bringing about change. Contagious spoke to Rémi Marcelli ...

  15. LEGO Group Marketing Analysis

    Unit II Case Study - LEGO Group. Phan Le Minh Tu Columbia Southern University MKT 5301 - Advanced Marketing Dr. Jon A. Crispin February 20, 2023. Introduction LEGO Group is a 1932-founded Danish multinational toy maker.

  16. The Astonishing Turnaround of LEGO: A Strategic Thinking Case Study

    This LEGO case study is a perfect example of why the ability to think strategically is crucial in the world of business. ... In the world of marketing, Instagram has stood out as a pivotal ...

  17. Lego Case Study: The Lego Group Competitive Advantage & Strategy

    Strategic Management and Organisational Dynamics. London: Pitman Publishing, 1993. Print. This case study, "Lego Case Study: The Lego Group Competitive Advantage & Strategy" is published exclusively on IvyPanda's free essay examples database. You can use it for research and reference purposes to write your own paper.

  18. How Market Research Helped Lego

    Upon the conclusion of the market research, Lego's product line called "Friends" was born. The colors of the brick included in this line were more vibrant and diverse. Lego ensured that the packaging was more appealing to young girls, and the figures were also altered to cater to the new audience. They increased the size of the figures so ...

  19. Lego Case Study: Marketing Audit and SWOT Analysis, Marketing Plan

    Lego Case Study: Marketing Audit and SWOT Analysis, Marketing Plan. Topics: Case Study Lego SWOT Analysis. Words: 2284. Pages: 5. This essay sample was donated by a student to help the academic community. Papers provided by EduBirdie writers usually outdo students' samples.

  20. Lego in China: conquering the toy market one block at a time

    With almost 300 million kids under the age of 18 in 2023, the Chinese toy market is extremely profitable, and reached a revenue of more than 18.9 billion USD in 2022. Lego is among the major players in this sector, holding over 43% of the market share in the construction toy category as of 2021. Due to its marketing strategy and its ability to perfectly blend with the local cultural background ...

  21. LEGO (A): The Crisis Case Study Solution [7 Steps]

    Case Study Analysis & Solution of LEGO (A): The Crisis , written by Jan W. Rivkin, Stefan Thomke, Daniela Beyersdorfer, Case Analysis, Assignment Help, PESTEL, SWOT, Porter 5 Forces, Porter Value Chain ... NTT DoCoMo: Marketing i-mode case study solution James vs. United States case study solution Steinway & Sons: Buying a Legend (C) case study ...

  22. Lego In China: A Case Study For Any Toy Brand

    May 23, 2023. In 2015, Lego, the Danish toy manufacturer famous for its plastic brick toys, ventured into China's vast toy market. Despite encountering various difficulties and obstacles, the company persevered and achieved remarkable success. In this blog post, we will explore Lego's approach to entering the Chinese market and their ...

  23. LEGO case study

    LEGO Case Study 20-16: Give as many examples as you can for how TLG defies the common social criticisms of marketing. TLG defies the high price criticism of marketing, because their ethical and sustainable practices make it reasonable for them to charge more money for legos.

  24. How Etsy Became Profitable

    HANNAH BATES: Welcome to HBR On Leadership, case studies and conversations with the world's top business and management experts, hand-selected to help you unlock the best in those around you ...