Lego to increase spend after record profits

by Nadia Ghani, Brand Republic 24-Feb-09, 09:40

LONDON - Lego is planning to increase its marketing spend after posting a 51% increase in British sales.

The company's UK managing director Marko Ilincic told The Times that marketing spend would be increased by nearly 30% this year to help build market share.

However, a spokeswoman for Lego played down the report, telling Brand Republic she did not recognise the figure. She stated that the toy company will use TV, online and social media in the coming months. It will also carry on sponsoring the Cartoon Network.

The Danish toy company has bucked the economic downturn to claim a 3.3% share of the UK toy market. The sector has seen a 2% slump in sales as parents tighten their purse strings.

Jorgen Vig Knudstorp, chief executive of Lego, said: "Despite gloomy economic prospects, we feel well prepared for growth in 2009 and our optimism is supported by the results seen in the first months of the year."

The spokeswoman highlighted that the brand has appeal during a downturn, as parents turn to more traditional, dependable products rather than more faddy items. She said: "We see in times of economic gloom that parents look for brands that can be trusted. Lego is a toy that can be turned to time and time again. That shines through."

Among the highest selling products in the Lego range were the Star Wars line, the new Indiana Jones range and the Lego City toy range, aimed at boys aged four to seven.

Comments

Nick Corston - 27/02/2009

A large part of this will be down to Lego's CRM - their, now well dog-eared, Christmas catalogue is still the most read of any book/magazine among the 3-5 year olds in our house and cost me over £200. They could charge for it as well as run pay per view of the Lego City mini video clips on their website - now there's a \(free) idea.