LEGO Marketing Plan

Introduction. Background. Where is LEGO now? Macro Environment Analysis. Analysis of the Competitive Environment. Competitor Analysis. Financial Analysis. Where we want to be? Marketing Mix (4Ps of MarketingWhere we want to be? Recommendations for the Future. Conclusion. References.

Rapid advances in digital technology are redefining our world block by block. LEGO, a toy manufacturer that caught the imagination of children all around the world, was faced with external forces affecting its industry and urging its transformation into the digital world in order to stay competitive and keep up to its customer’s changing needs and trends.

The purpose of this report is to outline how LEGO was able to become the world’s most valuable toys brand, compete against competitors and diverse into new products using effective marketing strategies and staying true to its core product...the brick. Using relevant analytical tools and theories, this report will evaluate the current competitive position of LEGO and how the change in the macro and micro environment will lead to major shifts in this position.

A PESTLE analysis is used to study the microenvironment and identify the impact of external factors on LEGO’s business and marketing strategy (Aguilar, 1967). From the political aspect, International Trade Agreements in addition to tax and labour policies are the main factors affecting the toy industry. Fluctuation in the currency exchange rates and the costs of labour are the most economical factors affecting LEGO. In the Socio-cultural Factors, lower fertility rates as a result of women engagement in working in addition to higher standard of living and education, which increase the spending power of families on educational toys (Pradhan, 2015).

Technological factors affect the toys industry hugely, as digitalization and Internet changed the children behaviors and needs to new products such as video games (RPARK, 2018). Legal factors have minor effect on the toys industry and vary between countries.

LEGO has sustained an environmentally friendly approach by using renewable recycling material and energy saving (Lego.com, 2020).