Business Functions - Case Study of Lego Group

Course: MBA with Professional Placement


The Lego Group is one of the leading play material manufacturing companies whose headquarters is located in Billund, Denmark(Lego, 2024). Lego establishes a strong relationship with customers that motivates them to participate by utilising social media, community-based strategies, and local stores.

Table of Contents

  • Introduction
  • Background of the company
  • Mission
  • Vision
  • Business Type
  • Target market
  • Marketing strategies adopted by Lego
  • Impact of marketing function by Lego's strategies
  • Marketing strategies contributing to business success
  • Conclusion
  • References

Question: Identify the strategies adopted by the chosen company and how these strategies affect the chosen functional area (marketing or operations). How do these strategies contribute to overall business success.

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Background of the company

Lego developed a specialised consumer base by appealing to adults' passion for architecture and design and satisfying certain interests. The motto of the firm is "Only the best is good enough"(Lego, 2024). The firm focuses on empowering children to become innovators and problem-solvers through providing tools that stimulate curiosity and creativity.

The mission of the firm is "To develop and inspire the builders of tomorrow" which is rooted in the dedication of the firm to manufacturing imaginative and high-quality play experiences (Lego, 2024). It encourages creativity, learning, and fun for children.

The vision of the Lego brand is "To create a global force learning-through-play"(Lego, 2024). The company's vision is to enable kids to become creative thinkers and problem solvers by giving them access to tools that encourage curiosity and inventiveness.

Business Type
The key business types of Lego comprise the manufacturing of toys, entertainment and licensing, retail, and education. Lego is popular for its plastic interlocking bricks which are required to be connected and assembled in a diversified manner for constructing vehicles, buildings, or other structures(HBR, 2019). Lego has extended its brand into diversified entertainment platforms which comprise video games, movies, and television shows. It comprises partnerships with popular franchises such as Harry Potter, Marvel or Star Wars.

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Target market
The primary target market of Lego includes children in the age group 3-12 and adult fans who love to collect, build, and display intricate creations of Lego(Lego, 2024). The firm has expanded its target market by delivering products that are tailored to diversified age groups like teenagers, adults, and preschoolers.

Marketing strategies adopted by Lego
The Lego Group has incorporated diversified strategies over past years to ensure market leadership, expand the deliverables, and cater to the diversified preferences of consumers. Product offerings are innovated by Lego by introducing new sets, themes, and play experiences which comprise collaboration with popular franchises. Lego diversifies its product portfolio comprising diversified categories like movies, games, educational products, or merchandise. The event of product launch is accompanied by diversified marketing campaigns which generate anticipation and excitement among customers. Corporate responsibility and sustainability are prioritised by Lego through investing in eco-friendly materials, promoting ethical practices, and minimizing carbon emissions(Albastroiu Nastase, et al., 2021). The firm has also invested in the initiatives of digital transformation which comprises mobile apps, e-commerce platforms, and online communities. Digital strategies assist Lego in improving consumer engagement, accumulating valuable consumer insight, and streamlining the shopping experience which leads to consumer loyalty and online sales. Licensing agreements assist Lego in capitalise on existing cultural phenomena and fanbases that drive brand awareness and sales(Cong, et al., 2021). The company operates branded stores across the globe which provide customers with exclusive products, unique shopping experiences, and interactive play areas. Essential promotion, store events, and initiatives of experiential marketing assist the firm in improving brand loyalty and customer engagement.

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Impact of marketing function by Lego's strategies

The product innovation strategy adopted by Lego assists the management to generate interest and excitement among customer which drive brand engagement and sales. The marketing campaigns justify the launching of new products, innovations, and partnerships to attract new and existing customers. A diversification strategy enables the firm to reach a broader audience by tapping into newer market segments. Marketing strategies are tailored to promoting diversified product categories which leverage partnership and cross-promotional opportunities to improve revenue and brand exposure(Lego, 2024). Consistent brand identity is maintained by Lego which is centred around imagination, play, and creativity. Iconic colours, design elements, and logos are recognisable across the globe. Consumer engagement is fostered by Lego through fan conventions, community events, and online forums where the fans would share the creations and interact with the brand. Lego created a niche market base which caters to particular interests by appealing to the love of adults for design and architecture.

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Marketing strategies contributing to business success

Consumer interest is stimulated by Lego through continuous innovation and the introduction of new play experiences, themes, and products which maintain consistency in sales. Diversification of the product portfolio and stepping into the new market segment, the consumer base is expanded by the firm which ensures a broader audience. Investment in e-commerce platforms, the digital field, and online communities improve worldwide reach, streamline the experience of interaction, and improve consumer engagement(Bhosale, et al., 2020). Using a diversification strategy, the business can reach a wider audience and take advantage of emerging market niches. Marketing plans are designed to promote a variety of product categories, making use of joint ventures and chances for cross-promotion to increase sales and brand recognition(Ching & Ellis, 2014). Lego upholds a consistent brand identity that is based on play, imagination, and creativity. Across the world, iconic hues, design elements, and logos are easily identifiable. Lego encourages consumer interaction by hosting fan conventions, neighbourhood gatherings, and online discussion boards where enthusiasts may share their creations and engage with the company.

The company is capable of creating a connection with consumers that inspires them to be engaged through incorporating the theories of technology, social media, and community-based tactics. Social media platforms such as Twitter, YouTube, Facebook, and Instagram are utilised for conducting marketing. The video tutorials of the products, attractive photos and interaction through such platforms enable the firm to ensure effective consumer engagement. In addition, Lego incorporates a marketing strategy that meets the cultural needs, trends, and preferences for ensuring consistency in sales volume.

Lego uses digital tactics to increase customer engagement, gather insightful consumer data, and optimise the purchasing experience, all of which increase online sales and customer loyalty. Lego leverage its fan base and current cultural phenomena to increase sales and brand recognition through licensing agreements. Throughout the world, Lego operates branded stores that provide their patrons with special merchandise, a distinctive shopping experience, and engaging play areas. Important advertising, in-store activities, and experiential marketing projects help the company increase customer engagement and brand loyalty.

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