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International: Lego confirms global agency review

01-December-2001
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International: Lego confirms global agency review

Lego Group has confirmed that it is in the process of "selecting a new lead advertising agency" to service the Danish toy-maker's brand at the global level. The move comes as Lego pushes ahead with plans to bolster its advertising presence in the U.S. and Europe.

McCann-Erickson Worldwide currently holds Lego's global brand account, which is reputed to have an annual budget of around $20 million. In Denmark and Scandinavia, Lego has used three to four regional agencies, including Copenhagen-based ADtention, Advance, SCAN-AD, and L&P Reklame.

Lego spokesperson Eva Lykkegaard says Billund-based company has not set a deadline to complete the selection process.

"We can confirm you that we are currently in the process of selecting an advertising agency to service our brand at global level. However, at this stage it would be absolutely premature to report on the outcome of this search and the nature of the assignment," says Ms. Lykkegaard.

Lego won't comment on which agencies have been invited to pitch. In Copenhagen, some of the names being mentioned in advertising circles include Ogilvy & Mather Worldwide, BBDO Worldwide, McCann-Erickson, Publicis Marche and Bates.

Lego has been prodded into action against a backdrop of rapid change in its brand profile from that of a traditional European toymaker to that of a high-tech and high-price brand whose business is closely connected to the global entertainment industry.

This switch in profile began in 1998 after a serious fall in Lego profits due to poor sales. At this point, Lego decided to revitalize its business by collaborating with what company officials label "Hollywood brands". Most recently, Lego joined forces Warner Bros. to launch a toy series tied to the movie Harry Potter and the Philosopher's Stone.''

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