A football fan, a film enthusiast and a child walk into a toy shop.
They might be looking for completely different things. But LEGO has a chance of selling something to all three.
That’s an interesting business advantage for a company whose products are built around small plastic bricks.
The numbers are stacking up
LEGO reported revenue of DKK 41.9 billion for the first half of 2026, up 21% on the previous year. Operating profit increased by 22%, and the company said it gained market share in a growing global toy market.
World Cup and Formula 1 products helped attract new customers.
For business students, the question is: how do you keep finding new customers for an established product?
Same bricks, different reasons to buy
Imagine two people buying a construction set.
One wants an activity to enjoy with their child. The other wants a model of their favourite racing car to display on a shelf.
The underlying product may be similar, but their reasons for buying are different.
This is market segmentation: recognising that customers have different interests, needs and budgets.
A business that understands those differences can adapt its products and marketing accordingly. The family might respond to a message about creativity and time together. The racing enthusiast might care more about the model’s detail.
Borrowing a little excitement
Brand partnerships can help a product reach people who might otherwise ignore it.
Someone who doesn’t normally browse construction toys might take a second look at a set connected to their favourite sport or film.
For the manufacturer, that creates access to an existing fan base. For the partner, it offers another way for people to engage with its brand.
But partnerships come with trade-offs. Licensing fees can reduce margins, and demand may depend partly on another organisation’s popularity.
A famous name on the box helps attract attention. The product still needs to justify the purchase.
Success creates its own problems
Strong demand sounds like a nice problem to have.
Until the most popular products sell out while less popular ones fill the warehouse.
A broad product range gives customers more choice, but it also makes forecasting and inventory management more complicated. Managers must decide how much to produce, where to send it and how quickly to respond when demand changes.
Sales growth needs operational support. Marketing can create excitement, but production and distribution must deliver.
Think beyond the obvious customer
LEGO’s results offer a useful prompt for any business: could your existing capabilities appeal to a customer group you haven’t fully considered?
That doesn’t always mean inventing something completely new. Sometimes it means finding a different reason for someone to value what you already do.
If you managed LEGO’s next product launch, which audience would you try to win over and why?
