In 1932 in a small town in Denmark, a carpenter named Ole Kirk Christiansen started a humble workshop creating wooden toys.
Times were tough during the Great Depression, but Christiansen’s dedication to high-quality craftsmanship laid the foundation for what would become a global phenomenon. By 1949, LEGO made a game-changing move: they began producing their now-iconic plastic bricks which interlocked seamlessly, and the product was launched under “Automatic Binding Bricks”.
Fun fact: The name LEGO comes from the Danish phrase “leg godt” – which means “play well.” Little did Ole know, this philosophy would define the brand for decades. LEGO’s journey wasn’t all smooth sailing. The company faced fires that destroyed their factories and even flirted with bankruptcy.
Today, LEGO is valued at ~ $13 billion, making it the most valuable toy brand. But LEGO is no longer just about toys – it’s a full-blown entertainment powerhouse. From blockbuster movies (The LEGO Movie) to wildly popular video games (LEGO Star Wars), LEGO has embraced digital innovation.
It’s also a leader in STEM-focused play, creating sets that help kids learn coding and engineering.
The Toy Industry: A Billion-Dollar Playground
The global toy industry is massive, and it is expected to reach $391.62 billion by 2030 (source). But it’s not all fun and games; this space is fiercely competitive, with companies constantly battling to grab the attention (and wallets) of parents, kids, and even adults.
The big players include:
Mattel: Known for its iconic brands like Barbie, Hot Wheels, and Fisher-Price
Hasbro: Includes Monopoly, Transformers, and My Little Pony.
Bandai Namco: A leader in merging toys with gaming, thanks to hits like Tamagotchi and anime-based collectibles.
When it comes to toy categories, action figures, dolls, puzzles, and video games reign supreme.
Usual Marketing Tactics in the Toy Industry:
- TV Advertising
- Television ads have been a go-to for decades.
- These ads are bright, engaging, and targeted at kids while subtly influencing parents.
- Seasonal Promotions
- Toys aren’t just gifts – they’re holiday staples.
- Companies roll out big campaigns around Christmas, birthdays, and back-to-school periods. It’s all about creating a sense of urgency for parents to buy.
- Licensing Partnerships
- Many toys feature Disney princesses, Marvel superheroes, or characters from blockbuster movie.
- Licensing deals are a goldmine, combining beloved franchises with toy innovation.
This not only increases a toy’s appeal but also guarantees visibility across multiple platforms.
- Digital Marketing
- Kids today are digital natives, so the industry is meeting them where they are – online.
- Platforms like YouTube, Instagram, and TikTok are flooded with toy unboxing videos, influencer promotions, and short, snappy ads.
- Retail Collaborations
- Big retailers like Walmart, Target, and Amazon are key players in the toy ecosystem.
- Companies partner with these giants for in-store promotions, exclusive product lines, and prominent shelf space.
Why It’s All About Connecting with the Audience
At the heart of these tactics is one goal: to connect emotionally with kids and parents. Kids want toys that spark their imagination, while parents look for value – be it educational benefits, durability, or nostalgia. The companies that strike the right balance win the game.
LEGO in India:
Funskool was the exclusive distributor o the entire LEGO range in India between 2010 and 2017. This partnership helped LEGO tap into Funskool’s strong retail network and local market expertise. The LEGO Group made its first steps into the Indian market in 2020 with the Little Red Brick campaign.
But it was instantly hit by the pandemic. There were 2 major concerns:
Pricing Problems:
LEGO’s high price point clashed with the Indian market, where affordability often dictates purchase decisions. Competing against cheaper, local toy options made it tough for LEGO to gain traction.
For this, they have introduced products starting at Rs. 499 and 1/3rd of all its products are priced under Rs. 2000.
Low Brand Awareness:
Unlike in Western countries where LEGO was already a household name, Indian parents and kids were unfamiliar with the brand. Construction toys were not a popular concept, limiting LEGO’s appeal to a niche audience.
However, LEGO decided to heavily use performance marketing to tackle this. Read more about it here. Today, LEGO is a favorite among Indian kids and parents alike, proving that with the right mix of innovation and adaptation, even premium brands can thrive in price-sensitive markets like India.
LEGO’s Marketing:
How LEGO’s Marketing Aligns with Industry Norms
LEGO’s marketing strategies reflect many of the tried-and-tested tactics used by the toy industry:
Licensing Deals:
Just like Mattel and Hasbro, LEGO has partnered with big names like Star Wars, Harry Potter, and Disney.
These collaborations create massive appeal, leveraging the fanbases of iconic franchises. For instance, the Millennium Falcon LEGO set is a dream for Star Wars fans of all ages.
Seasonal Campaigns
LEGO jumps on the holiday marketing bandwagon with themed sets for Christmas, Halloween, and other occasions.
Limited-edition holiday sets encourage gifting and often sell out quickly.
Digital Promotions
LEGO is highly active on platforms like YouTube, Instagram, and TikTok, where they target tech-savvy kids and parents. Fun, short videos showcasing builds, challenges, and fan creations keep LEGO top of mind in the digital age.
Retail Collaborations
Just like other toy giants, LEGO teams up with big-box retailers such as Walmart, Target, and Amazon. In-store exclusives and prominent shelf placements help drive sales, especially during shopping seasons.
Hamleys and LEGO maintain a strong retail partnership in India, where LEGO products are prominently featured in Hamleys stores. The collaboration benefits both brands: LEGO leverages Hamleys’ widespread presence and premium positioning in India, while Hamleys enhances its toy offerings with LEGO’s globally recognized products.
This partnership helps LEGO overcome some of its previous struggles in the Indian market, such as limited availability and high import costs, by providing a more accessible and diverse range of products through a trusted retailer. Hamleys’ focus on experiential shopping also aligns well with LEGO’s hands-on, creative play philosophy, offering a platform for LEGO’s products to thrive in India
How LEGO’s Marketing Differentiates Itself
Where LEGO truly shines is in the way it takes these industry norms and infuses them with creativity, education, and community-building.
1. Focus on Creativity & Learning
LEGO markets itself as more than a toy – it’s a tool for creativity, STEM learning, and personal growth. Campaigns like “Rebuild the World” are an inspiration to think outside the box, encouraging problem-solving, innovation, and inclusivity.
LEGO Education sets and platforms make learning coding, engineering, and robotics fun and accessible.
2. Community Building
LEGO Ideas:
This genius platform invites fans to submit their own designs. Popular ideas – like the Friends Central Perk set – are turned into real LEGO products, giving fans a direct contribution in the brand’s success.
LEGO User Groups (LUGs):
These are global fan communities where Adult Fans of LEGO (AFOLs) connect, share builds, and even collaborate on official projects.
Events and Conventions: From LEGO fan expos to massive conventions like BrickCon, LEGO creates spaces where fans celebrate their love for the brand.
3. Entertainment Integration
LEGO is a pioneer in blending physical and digital worlds.
Movies like The LEGO Movie and The LEGO Batman Movie reinforce LEGO’s identity. Video games like LEGO Star Wars and LEGO Marvel Superheroes combine gaming with building, appealing to younger audiences and nostalgic adults alike.
With this, LEGO’s marketing goes beyond selling toys – it’s about building lifelong relationships with its customers.
In a Nutshell
LEGO is now sold in over 120 countries, captivating millions of fans across generations. LEGO recognized kids as well as adults as its audience and engages them through both online and offline channels, staying relevant, relatable, and loved. And as its bricks continue to inspire endless possibilities, one thing is clear: LEGO truly knows how to “play well.”
Key Takeaways from LEGO’s Marketing
- Retail partnerships can bridge market entry gaps, as seen in LEGO’s collaboration with Hamleys.
- Adapting pricing strategies to local markets ensures broader accessibility and stronger sales.
- Leveraging digital platforms and experiential marketing builds brand loyalty in modern consumers.
- Collaborations with popular franchises amplify product appeal and market presence.
- Community engagement initiatives, like LEGO Ideas, drive organic brand advocacy and innovation.
