Movie helps LEGO build profits and brand momentum

LEGO, known for its ubiquitous plastic bricks, has just reported a 12% rise in profits, thanks to the popularity of merchandise related to the animated hit The LEGO Movie. The movie's appealed not just to young fans but also to adults who accompanied youngsters to the theater (often more than once)--noting that the plot and characters were engaging and not just an extended advert for the brand.

On the strength of the rise in revenue and profits, LEGO is now at the top of the toy industry, surpassing long-time leader Mattel by a small margin. LEGO and Mattel will both be using their marketing plans to build brand momentum for the all-important year-end holiday shopping period. Mattel has even purchased Mega Brands, a rival plastic brick company, to enhance its presence in that part of the market.

Can LEGO repeat its move tie-in success with a sequel? Disney/Pixar's Cars multi-movie franchise has been bringing shoppers into stores to buy billions of pounds worth of movie-related products for years. No wonder LEGO is looking ahead to 2017, when Warner Bros. plans to debut the second in the LEGO movie franchise.