Marketing Report on Lego

This marketing report covers the brand background, target market segment, needs, wants and demands, and marketing strategy of Lego. It specifically focuses on Lego's film and television industry and its 4Ps marketing mix. The report provides insights on Lego's product strategy, pricing strategy, place and distribution strategy, and promotion and advertising strategy.

Marketing Report on
Lego

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Organisational/Brand Background .............................................................................................3
Market and Target Market Segment...........................................................................................3
Needs, Wants and Demands ......................................................................................................5
The Marketing Strategy (Marketing Mix 4Ps)..........................................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The report below will be prepared on Lego, a brand that made construction toys which is
manufactured by The Lego Group. It has based its foundation in Billund, Denmark and is a
private company. As per the recent report , it was suggested that has gained the tag of biggest toy
company of world. Lego is considered as the star product of the company and comprised of
various coloured accompanying plastic bricks escorting an array of gears, figurines called mini-
figures and other parts. The Lego Group therefore began manufacturing the interlocking of toy
bricks in 1949. further development in the brands involved movies, games, competition and eight
Lego-land amusement parks(Dogu and Albayrak, 2018). The product line offered by Lego is
Video games, board games, films and television, books and magazines and clothing. The main
motive of Lego group “only the best is good enough”. The motive therefore encouraged its
employees never to sacrifice the quality of products. The brand Lego gained its popularity
through representing widely and using the different forms of cultural works, books, films and
also art works. The report will further cover the background of brand, the target market segment,
its related needs, wants and demands and also the marketing strategy.
TASK
Organisational/Brand Background
For this report, considering Films and television as the product line offered by Lego. In context
to its background, the first official Lego Film was the straight to DVD release of Bionicle:Mask
of light in 2003 that was developed by creative capers entertainment and distribution
responsibility was with Miramax home entertainment. In adaptation of Lego Ninjago, a featued
film was developed by Warner Bros in June,2013. In this context, some producers like Dan Lin,
Roy Lee, Phil Lord and Chris Miller came on field and some writers like Brothers Dan
Hageman and Kevin Hageman also came on board . The film The Lego Ninjago Movie was
released in September 2017(Dolnicar, 2019). A computer generated animated series based on
Lego Ninjago: Masters on Spinjitzu began in 2011. The success of the film led to the released of
two licensed video games a 4D film theme park attraction in 2017.
Market and Target Market Segment
Official website of Lego is the source of Marketing of its Films and television industry-

The website was first launched in 1996 and is associated in offering various other services
beyond an online store and a catalogue of product. It also developed an app named Lego Life. It
is available at free of cost but to access the content some amount is set and only specific content
is available(Elkins, 2019). Films and television shows developed by Lego are available on app.
TARGET MARKET SEGMENTATION- This is considered significant for the entertainment
companies in order to make effective strategic decisions. This helps the brands as well as
company to perform in the today's digital ecosystem. The growing social media has made the
statement of Know your customer important to every company. Lego undertook this in context
to its film and television for three reasons-
 Improving of content shown through its movies and shows
 an innovative way to introduce the effective marketing and promotion campaigns
 bringing on more customers to the ground of Lego.
Before understanding the procedural steps involved by Lego, understanding the inclusions of
target market segmentation-
1. Behavioural- this expresses the interaction of customer to the products or brands. It
overviews about the engagement, usage of social media and little about the consumer
retention.
2. Demographic- this includes gender, age, income, education, social class, religion and
nationality(Fisher, 2018).
3. Geographic- this is related to the place where the customer live. This gets further divided
by nation, state and country.
4. Psychographic- this includes personality attributes like lifestyle, attitudes, likes and
dislikes.
In reference to Target Market Segmentation, procedural steps is used by Lego for its product line
Film and Television- Collect recent and reliable data- this will bring out the true picture of film and industry
line offered by Lego by understanding the competition and strong customer base. Bifurcation of the market- customers watching the shows and movies as developed by
film and television are all unique, so it is easy for them to point the pattern as they have
shared characteristics.

 Know your competitors- having a competition is the key to success. Therefore Lego
group is constantly involved in analysing the competitors of its film and television
industry as there exist stiff competition and regular check on the same is important.
 The analysis gained is to be reflected in the business strategy- with the identification of
potential customers it is easy for the Lego Group to make prediction on who will watch
its shows and movies and create a distinct and innovative feature(Gajdošík, 2020).
Targeted customer segment of Film and Television-
 Lead user- This segment is associated with the consumers with whom the Lego Group
constantly engages with.
 1:1 Community- Consumers who are known to the Lego Group through their names
and address.
 Connected community- people who have brought the subscription of Lego App and
have been to a shop or park developed by Lego.
 Active Household- this segment refers to the people who bought products of Lego in last
12 months.
 Covered Household- people who brought the Lego once
Needs, Wants and Demands
The needs are factors that is associated with the satisfaction of basic requirement. Whereas wants
are related to the particular type of items. Demands therefore are certain request for particular
product that the buyer is willing to pay for. Considering an example- an individual might require
need for reliable transportation but might want convenience and comfort to seek an auto mobile
of their own and demand for specific colour with safety ratings.
It has been observed that from the point of view of the supplier it is helpful in developing the
portfolio of the product that will improve the customer loyalty and at the same time retain it for a
longer period of time. The three terms needs, wants and demands vary in terms of target market,
cultural and social norms and also some market conditions(Golder and Mitra, 2018).
The Lego Group through its theory of specifying the needs, wants and demands is targeting the
children below 12 years of age.
The need theory-

this theory includes three elements like need for achievement, need for affiliation and need for
power. For Lego Group this is required in order to identify the type of content required by its
target customers so that it can gain the confidence that they are developing as per the need and
will be successful among the competitors struggling in same segment. For ruling the market its
film and television segment needs to maintain the discipline and do not provide any negative
content to the customers.
The want theory-
this theory provide focus to the desirability sector of customers. Lego Group therefore keep
pacing with the customer want with respect to the content provided by its film and television
segment(Huang and Lai, 2021). It therefore satisfies the wants of children as well people of big
age group, by providing the relevant content like serials and updated news and also cartoon and
learning shows.
The demand theory-
this works according to customers and their preferences. This can be overviewed by Lego
Group through the feedbacks provided by its customers after watching their shows and series. It
provides the understanding of the content that customers wants to see and also their thought
process level. It therefore constantly engaged in fulfilling the demand of its customer to increase
the satisfaction level and retaining them for a longer period of time.
The Marketing Strategy (Marketing Mix 4Ps)
Marketing strategy can be defined as tactics used by the companies to drive its operations in way
in which it can attract more and more customers and rely these customers on the product and
services offered by the company. This strategy helps the Lego group in placing itself
successfully in the market and achieves the goals and objectives. The Lego Group therefore
follows 4Ps which is defined as -
 Product- it can be the good or service that targeted to the audience with the perspective
of marketing the same(Lee, Kim and Won, 2018). This includes some prior
considerations like-
1. What is the type of product?
2. What does company's product do and does the product have the capability to fulfil the
need.

3. Targeted audience of the product
4. Distinctive feature of the product from others.
Lego's product strategy in context to Media and entertainment-
the major shortfall came in the Lego products in the stores and that was also reflected on the
number of pre orders. This was due to the reason of introduction of new product line that is
movies, shows and series(Stead and Hastings, 2018). This product made a remarkable
achievement that created a top class image of the Lego Group. Some most popular movies were
The Adventure of Clutch Powers and The Lego Batman movie.
 Pricing- it is related to the cost of product or service. Companies are therefore vary
cautious while setting up prices as it need to pick up that price that is accessible to target
market along with the meeting of business goals. Pricing therefore has a major impact on
the success of business.
Lego's pricing strategy in context to Media and advertisements-
Lego has not introduced the shows and subscription for the children below age of 3 years.
Therefore for subscription it tends to keep the prices affordable for the customers in order to
retain them for a longer period of time and middle class families would not find it difficult to buy
the same. It provides unique value to the customer that increases the market share and also
creates a repetitive purchase.
 Place and distribution strategy- the place is associated with the selling of product by
the company and also the distribution channel used by the company to reach the
customer. Failing to assure this, would let company in not reaching the targets effectively
and on the set timeline. This requires considerations like-
1. Where company will sell its products
2. What is the place where target audience tends to shop
3. What can be the best and appropriate distribution channel.
Lego place and distribution strategy-
As television and film is available on the digital platform, so Lego Group ensure that its shows
and movies are available on each platform which is used to provide the different series and
movies(Trivedi and Yadav, 2018). It has also distributed the rights that movies, shows and series
developed by company can be sold through the Amazon.

 Promotion and advertisement strategy- this is associated with the advertisement of the
product or service of the company(Wang and Genç, 2019). This helps in creating the
publicity of the product. This includes methods like print advertisements and television
commercial.
Lego promotion and advertising strategy-
Lego was made popular not only by mode of conventional media but also through following the
unique and innovative marketing strategies. Over passage of time, Lego has developed itself in
every way like it has developed its own app and have official website on which it offers various
movies, shows and also some series(Zimmermann, 2019). For advertising this, Lego uses TV
and print media. Their promotion was also done through you tube ads that building the
awareness of film and television
CONCLUSION
The report has therefore covered the film and television as a product line offered by Lego
Group, which is a manufacturer of not only plastic toys but also toys made of bricks. There are
various other product line offered by the company. The report has outlined the background of its
film and television industry and also the marketing strategy adopted by it. The marketing
strategy widely demonstrated the implementation of 4Ps and its working in context to company
product. The customer centric scenario of the company was also overviewed about its target
market segment and its place of operations.

REFERENCES
Books and Journals
Dogu, E. and Albayrak, Y.E., 2018. Criteria evaluation for pricing decisions in strategic
marketing management using an intuitionistic cognitive map approach. Soft
computing, 22(15), pp.4989-5005.
Dolnicar, S., 2019. Market segmentation analysis in tourism: a perspective paper. Tourism
Review.
Elkins, E., 2019. Locked out: Regional restrictions in digital entertainment culture (Vol. 14).
NYU Press.
Fisher, W., 2018. Organisational Citizenship and the Post-Acquisition of a Global Hotel Brand.
University of Johannesburg (South Africa).
Gajdošík, T., 2020. Smart tourists as a profiling market segment: Implications for
DMOs. Tourism Economics, 26(6), pp.1042-1062.
Golder, P.N. and Mitra, D. eds., 2018. Handbook of research on new product development.
Edward Elgar Publishing.
Huang, C.Y. and Lai, C.H., 2021. Effects of internal branding management in a hospital
context. The Service Industries Journal, 41(15-16), pp.985-1006.
Lee, J.L., Kim, Y. and Won, J., 2018. Sports brand positioning: Positioning congruence and
consumer perceptions toward brands. International Journal of Sports Marketing and
Sponsorship.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Trivedi, S.K. and Yadav, M., 2018. Predicting online repurchase intentions with e-satisfaction as
mediator: a study on Gen Y. VINE Journal of Information and Knowledge Management
Systems.
Wang, Y. and Genç, E., 2019. Path to effective mobile advertising in Asian markets: Credibility,
entertainment and peer influence. Asia Pacific Journal of Marketing and Logistics.
Zimmermann, P.R., 2019. Documentary across platforms: Reverse engineering media, place, and
politics. Indiana University Press.