Lego Marketing Strategy Analysis Research Paper

Paper Type:  Research paper
Pages:  6
Wordcount:  1444 Words
Date:  2021-04-05

Introduction and Company Background

Lego is a company that focuses on the production of plastic toys for children. The company is mostly known for its pioneering in the development of plastic building blocks for children of different ages. The building block is manufactured in such a manner that they all interconnect to form various forms of model buildings and other types. Each building block manufactured by the company interlock perfectly with all the other bricks so as to maintain some standardization in his or her products.

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Regarding Lego market position, over the years, the company has dominated the market, but in the current age of the development of the internet and technology, there have been emergent businesses that have necessitated for the company to think of new ways to reach its clients more. It has become vital for Lego to take an active market research campaign that will aid the organization in getting to understand its customers more so that it can meet their needs more precisely and be able to compete in the market. The contents of this paper are focused on drafting up the best marketing research plan that will aid the organization in remaining relevant in the market.

Statement of the Problem

The Lego management has been faced with the challenge of trying to stay relevant in the current market that is heavily reliant on the use of technology in the creation of games and toys. This phenomenon has affected Lego, which has been more dependent on the development of toys and games that are not interned with technology but more focused on the creative skills of children. The company is supposed to make sure that it has reinvented itself so that it can create products that contribute to making the future play for children while at the same time staying ahead of its competitors who are more reliant on technology. In order to do this, a proper marketing research plan has to be set up so that the organization will understand more the needs of its clients as a way of beating the competition. The main problem of the organization is to make sure that they remain relevant in the market.

Objectives of the Marketing Research

- To understand the impact of technology in the gaming industry

- To evaluate the current trends in the market

Evaluation of the Lego Competitions Marketing Strategy

Lego Competitor Analysis

Like in any other industry, competition is the main driver for innovation. Competition poses organizations with the need to learn the market so that they can strategically position themselves as a way of gaining an edge in the market. For an organization to understand the needs of its clients more, an evaluation of the competition is necessary. Competitor analysis is one of the main aspects of a marketing research that will ensure the success of the marketing research plan. Some of the main organizations that offer competition for Lego are companies like Hasbro, Mattel and open innovation in the market. These companies are the major competitor because of their vast use of technology on the development of their products as opposed to Lego that does not rely on technology. These companies have taken a significant share of the market from Lego because of some of their new products like 3D printing and virtual building games. Through this, companies have affected the sales at Lego bringing about an inconsistent graph in their sales. The fact that competitors like Hasbro have made sure that they have taken to new markets where their games can be played with children as well as adults above the age of eight. Virtual reality has become the new norm for this organization as well as gaming online and other technology-related games for their target client.

From an evaluation of the competition, it can be seen that the success of these organizations has been drawn from their extensive use of technology. A diversification of the competitor organizations into new markets has also played a major role in the success of Lego competitors. The focus on adults and children above the age of eight is one of the major factors that has made the competition a much better option for clients in the market. Competing companies like minecraft have focused most of their brand along big gaming campaigns and offered products. Innovation and staying connected to technology have also been one of the major competing strategies for the emergent companies that have so far threatened the existence of Lego in the market. It has been found out that the innovative power of an organization has a major impact on the success of the agencies in the current world of business and technology (ABiel, 2013).

Current Trends in the Market

The market research also focused on trying to find out the new trends in the world of gaming and children's toys. Recent studies have shown that for most of the gamers in the current generation, the use of the internet and virtual gaming is more preferred to hands-on games. Televised games and virtual games are the current forms of gaming in the market. Competitor companies like Hasbro have moved into 3D printing and virtual gaming as a way of reaching out to new clients. The use of technology in business in the current era plays a major role in the success of organizations. Virtual gaming in the current times comprises more than 60% of the total gaming market in the world (Sumak, 2010). Making use of the internet has enhanced the game's more versatile, interesting and challenging for both children and adults (Allen, 2015). In as much as in the previous years the use of technology by kids was shunned especially by parents, the inculcation of technology in almost all aspects of life has made it easier for its penetration in the market (Davenport, 2013). The other factor that has pushed for the growth of the use of technology in gaming is the fact that it improves the quality of the game and provides a much better experience as opposed to other games (M.Y., 2009).

Market Advantages in Lego

Lego was among the pioneer companies in the gaming and toy business. This position gives the organization a stature in the market that makes people believe more on the products that are produced by Lego. The virtue that over the years Lego has focused some of its effort in aid of the development of children with autism, it is seen as a reputable brand in the market that is focused on kids and their well-being. The Lego company also has the advantage of being focused on the security of the child while playing online games shielding them from cyberbullying and other forms of internet vices (Allen, 2015). By doing this, the organization will be among the best game providers, and it will enhance the business market competition edge. Lego can focus on co-branding opportunities with franchised figures like Batman and other cartoon characters that children are familiar with. These collaborations have in the past and will help the company gain more traction in the market and be able to remain relevant in the volatile gaming market.


From an evaluation of the data collected from the market research, it can be seen that technology contributes a significant role in the development of the gaming industry. Companies like Hasbro that have moved their focus to concepts like virtual gaming and technologically enabled gaming devices. Studies accentuate that there is an exponential increase among users on gaming sites around the world (Wisdump, 2013). Parents among other subscribers have become more open to the use of online gaming and virtual gaming due to the current securities that have been invented in this field. Aside from technology, trends in the gaming world are moving towards more interactive games that can only be played when one is connected to the internet or by the use of technology. For Lego to remain relevant on the market, it has to make sure that it has focused on embracing technology more with an emphasis on the safety of the children. Being a novelty brand, Lego can revive the love that its clients had for its products in its earlier year. By focusing on the fact that the company is built by helping children grow creatively the company will make it in the market.


Aaker, D. (2008). Strategic Market Management.

Abiel, A. B. (2013). Brand equity & advertising: advertising's role in building strong brands. Psychology Press.

Allen, A. L. (2015). Understanding New Threats to Privacy and Cybersecurity.

Sumak, B. P. (2010). An empirical study of virtual learning environment adoption using UTAUT. In Mobile, Hybrid, and On-Line Learning. Second International Conference, (pp. pp. 17-22).

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Lego Marketing Strategy Analysis Research Paper. (2021, Apr 05). Retrieved from

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