LEGO, a globally recognized brand with a long history in the building block industry, has significantly influenced the way children and adults engage in play and creativity. However, as technological advancements reshape consumer expectations for interactivity, intelligence, and innovation, the LEGO Group faces challenges from emerging competitors, rising costs, and sustainability concerns. This study addresses these challenges by identifying research gaps and constructing a theoretical framework for LEGO’s innovation design through a mixed-methods approach. Scenario-based observations revealed natural user behaviors and motivations, while in-depth interviews uncovered users’ emotions, expectations, and pain points. Persona modeling informed targeted design strategies, and petal diagram analyses linked product attributes to user needs. The c-box framework highlighted market strengths and weaknesses, and the jobs-to-be-done (JTBD) theory examined user motivations from a task-oriented perspective. Rapid usability testing pinpointed key areas for improvement. Findings suggest that integrating technologies like virtual reality (AR) and augmented reality (VR) can create immersive, engaging experiences, while adopting sustainable materials aligns with global trends and enhances the brand’s image. Building a global user community could foster creativity, collaboration, and brand loyalty. This study offers academically and practically valuable insights to support LEGO’s innovative leadership, addressing consumer demands while exploring pathways for growth in a competitive market.