Marketing Across Culture

This report explores the concept of marketing across culture and its application in the global business of Lego. It discusses the capabilities and product portfolio of Lego, as well as market opportunities and characteristics. The report also provides insights into marketing strategies and tactics used by Lego, including market selection, mode of market entry, and the marketing mix. Recommendations for the future are also provided.

Marketing Across Culture

Table of Contents
INTRODUCTION...............................................................................................................3
1. Lego Capability and Product or Service Portfolio......................................................3
2. Market Opportunities and Characteristics..................................................................5
3. Marketing Strategies and Tactics...............................................................................6
RECOMMENDATION......................................................................................................11
CONCLUSION.................................................................................................................13
REFERENCES................................................................................................................14

INTRODUCTION
Marketing Across Culture is a strategic process of marketing which help business and
company to do a marketing globally in different culture aspects such as language,
religion, educational, country, colour, social values etc. Lego use Marketing Across
Culture in global business. Lego is a famous brand of construction toys which are
manufactured by Lego Group. It flagship products are interlocking plastic bricks. These
bricks can be connected in many ways to construct robots, vehicles, buildings etc. Lego
manufacturing toys since 1932 (Augustyn, 2018). It manufactures different educational
toys such as Primo, Quatro, Duplo, Bricks etc. This report will show the capability and
product portfolio of Lego and also show the global market opportunities and
characteristics. It will also present global marketing strategies such as market selection,
key market and target customers, mode of market entry and marketing mix. In the end
of the report it will recommend Lego what to do and not to do for the next five years.
1. Lego Capability and Product or Service Portfolio
Lego Capabilities:
VRIO analysis: It helps Lego to understand its capabilities and how to use these
capabilities in competitive advantages. It also helps to evaluate internal analysis of
Lego. Lego products are valuable and Its resources is easily imitable and easily
available. Organization resources help Lego in effective management.
Lego has 3 key strategic capabilities which support Lego’s success:
These capabilities help Lego to win competitive advantage in different ways as such as
Core Brand Identity, Customer Designed Innovation and Efficient operation (Choi,
2018).

Core Brand Identity: Lego brick is icon or logo of the brand; its mini figure involves
cultural changes. It strongly focuses on education of kids and if they innovate new
product they ensure that it will fit in Lego brand identity.
Customer Designed Innovation: It involves customers to get idea for innovation. New
product introduces with 70% of sales. Lego also upgrade existing product with
innovative themes.
Efficient operation: Lego use effective and efficient operation for manufacturing. It uses
cutting edge moulding technology to give perfect finishing to toys (Sørensen, 2020). It
has effective connection with retail industry for sale. Its common structure reduce
complexity in manufacturing and operation.
Lego Product Portfolio:
Product portfolio management is one of the important element of the business it helps
Lego to achieve its overall business objective and also plan for future success. Product
portfolio work as a major tool for Lego and also for its financial planning and for
investors (Lin, 2019). It is including all the product and services which are provided by
Lego. Product portfolio include all various kind of Lego’s products such as construction
toys, learning toys, different Lego themes such as Primo, Quatro, Duplo, Bricks, cars,
wooden toys, robots etc. Lego Product Portfolio's main role is to analyse which product
or service is well aligned with whole strategy and help to fulfil business objectives. Its
important in Lego and its business for various reasons such as product innovation, tax
benefits, visualize the entire products-line, effective allocation of resources, cash flow,
aligns projects with the business strategy, data for the key members of the
management, proper selection of the target market and customers, interaction with
internal team etc. Different Lego products help company to fulfil its goals.

2. Market Opportunities and Characteristics
Market Opportunity: It is important part for business or company for growth. Marketing
opportunity help Lego to identify attractiveness and market chain for business
opportunity. To identify market opportunity Lego first step is product selection. Product
selection is a method which can be done by based on marketing experience. Lego can
use market penetration strategy with product selection method. Lego can use market
opportunity as diversification approach to attract new customers and also develop
products according to their needs. Market opportunity gives Lego new way to rise and
increase sales and profits (Hensmans, 2019). Lego use its marketing opportunities as a
competitive advantage. Different Countries such as China, India, US etc. are provided
market opportunity to Lego. Lego build there brand in China by using market
opportunities. It open stores, Lego Park in different countries for growth.
Market Characteristics: It includes different features such as area, commodity, buyer
and seller, competition, and price. These features are basic element of market
characteristics. These characteristics help Lego to achieve its objective.
Area: In every business area and region are important factor, It affects directly or
indirectly to the growth of the business. Lego share its market in worldwide region. It
sells its product in 130+ countries and in Lego 16,112 employees work worldwide
(Bedford, 2020). New technology, different mode of communication and transportation
help company to spread their area worldwide.
Commodity: According to economics commodity is a raw material of goods or services
that is uniform. It is important in development and manufactured department. It is
exchangeable material. Commodities are available in every area and it reduces profit
margins of brands. Lego bricks fitting in commodity standard because it is raw material.

Buyer and Sellers: It is most important factor in any business or company. Buyer and
sellers presence is important for marketing and buying of a product. Lego products
buyers are kids and sellers are different retail industry.
Competition: In market competition is important between buyer and sellers. It helps to
set price of the product and create healthy competition between competitors. Lego has
different competitors such as Zapf Creation, Tricae, Mattel, Nerf, Hasbro etc. They all
are strong competitors of Lego.
Price: It is main characteristic of the market which affect market directly. Price is set by
healthy competition between buyers. Lego products price in medium range.
3. Marketing Strategies and Tactics
Market Selection:
Target Market & Segmentation: Lego target parents who have less children and who
have good income, they target adults who want to run away from stress and wants to
spent time in fun activity, and they also target preschoolers and elementary school
children play Lego Duplo product and with licensed set. Lego provide playful learning
and children actively participating on this playful learning. Lego also provide family
games for whom who want spent time with their kids. It also provides premium
memberships by its club program. Lego target market in geographical segmentation are
they target theme parks all over the world, they also create LEGOland in many
countries to attract kids as well as adults. Lego group categorized their buyers based on
purchase and usage rate such as it categorized 6 different consumers according to
product purchase rate:
Lead Users- In this category people actively take participate and engage with Lego
products and design.

Community- This category Lego include because in this category they know their name
and addresses.
Connected Community- In this category Lego include peoples who bought Lego product
from Lego shop or Lego Park.
Active households- In this they include peoples who bought Lego product actively from
12 months.
Covered Households- In this category Lego include buyers who bought Lego product
once in a life.
All Households- In this category people who never buy Lego products.
Mode of Market Entry: There are different entries modes are available such as
exporting, licensing, partnering, acquisitions and establishing new market. Lego use
these different modes to expand their business internationally or nationally.
Exporting: It is the easiest way to enter in new market with low risk. Exporting help Lego
to enter in new market (Schellenberg, Harker, and Jafari, 2018). Lego export its product
in the countries such as Florida, California, Japan, Dubai, Germany and Malaysia.
Advantage of exporting is Lego can avoid the expense of all set-up in new market.
Disadvantage of exporting for Lego are they don't have full control, don't have proper
knowledge or market and transportation affects by environmental impact.
Licensing and franchising: This mode is use when one company give permission to
another company to sell or manufactured their product by paying a specific amount.
Licensing is used by Lego to take or give permission to use or sell the product. For
example Lego use licensing to manufacture Batman and it products. Its advantage is it
has low cost investment, low risk and easily enter in new market to gain profit.
Partnering and strategic Alliance: It is another way to enter in new market. By using this
mode Lego establish partnerships with Star wars, DC Comics and Harry potter. This

mode help Lego to gain profit in market shares. Advantage of this mode is it reduce risk
and it shares costs but it has disadvantages also such has its cost is more than
exporting and licensing it has also arrived some cooperation problem between partners
and company.
Acquisition: By this mode Lego can gain control by buying shares of different company
or competitor company. Recently acquisition rise dramatically which help Lego to enter
in new market in fast rate (Hameed, and Irfan, 2019). It also helps to set-up new
operations. This mode has some disadvantages such as high cost and group action
issues and also this depends on market shares.
Marketing Mix: It is important strategy in marketing to achieve its desired output and for
fulfil companies objectives. Marketing mix includes 7Ps such as place, price, product,
physical, process, people and promotion. These elements help Lego to analysis the
macro environment of the company and how they effect the growth of the company.
Product: It is an important element of the company. Product or service helps to satisfy
customer needs. It just not includes physical products but also the service which
company provide directly or indirectly (Langaro, and Martins, 2020). Lego group include
different products such as interlocking coloured plastic bricks with different sizes and
parts. These bricks can be connected and create different structures such as robot,
buildings, boxes, cars etc. Lego sets introduce different products by Lego group with
different subject such as robots, space, trains and pirates etc. Different generation
plays with Lego products and grew up. Kids buy Lego products to play and in other
hand adults buy Lego product to decorate rooms. Lego continuously update their
product, and they are not only limited with cars, robots and bricks they update and
innovate their products to attract new customers. Lego products are very different with
compare to its competitors. It offers different features to buyers.

Price: It is an important element in marketing mix. Lego use premium pricing strategy for
higher competition. Its product price is high because it provides high quality of product
materials for manufacturing. It also provides its products in medium prices for
competitive advantage (Brewster, 2020). It also maintains value based price strategy.
Lego charges high prices because it also provides online services. It also offer
discounts to attract buyers.
Place: It is a channel of distribution. Lego products are available worldwide in different
countries such as Denmark, California, Germany, China etc. It is famous brand which
also deal with retail stores and outlets. It also sells it products online on its website or e-
commerce websites. Lego sell its products directly or indirectly to its consumers. It also
sells its product to wholesalers they sell the products at different local stores (Kogan,
and et.al., 2017). Lego use omni-channel distribution method to provide products online
and offline stores.
People: Its play vital role in business and marketing. Lego has deals with people in
different ways such as it deal with employee in such way that they give training to its
employees so that they give their best work to the company. They differently deal with
suppliers to gain raw material for manufacturing and production. Suppliers play
important role in maintaining quality of the product. Lego positively deal with customer
or buyers to attract them towards its products and try to provide products according to
their needs. Customer service department and retail stores help customers to give
solution of their problems and for their product satisfaction.
Process: This element help Lego to confirm that their product is always delivered at
exact location. It helps Lego to provide service delivery on time. Process also helps
company to ensure that its products are always available to wholesalers and retail
stores and if product are not available to stores then it helps to notify the company so

the company provide products (Naujoks, 2020. It also helps Lego to evaluate buyer
complaints and help it to response the complaints on time. This process help Lego to
constantly support in research of the market opportunities and help to understand
consumer expectations. It also helps to understand customer needs by feedback and
reviews.
Physical: It includes delivery and packaging of the product. Physical evidence help
company to create its own identity by providing unique and attractive packaging. By this
method customer attracts towards product. Lego see role models to children and
provide facilities according to children's. It also includes colour and design which
company used in their logo. Lego also continue its work by inspiring kids. It tries to give
unique packaging for their products to attract kids. It also makes its website user-
friendly so customers can easily operate it.
Promotions: It includes different types such as advertising, personal selling, public
relation, sales promotion and direct marketing. Lego is spent huge amount in promotion
to attract new customers. It done different promotional activities to gain customer
attention and for brand recognition. Lego offer sales and discount for promotions. It
uses promotional activities such as advertisement on television, online websites,
magazines and social media etc. Lego also organize different event to promote their
products. It uses multiple media channels for promotions. It also done sales promotion
by providing huge discounts on its products. Lego use VIP promotion to attract kids and
buyers.
RECOMMENDATION
Lego is leading company in manufacturing of construction toys. It also manufactures
learning toys for kids. It provides its service from approx 90+ years but to maintain its
image Lego should create strategy to compete with challenges (Booker, 2019). Its

recommend to Lego that use global strategies to expand their business globally and
also for next five years Lego must focus on its growth and try to expand their business
internationally by compete with different challenges such as cash has stopped stacking
up, investing in long term growth, building a bright future with a wining growth strategy,
learning with competitors growth strategy, stay graceful.
Cash had stopped stacking up: To expand business in next 5 years Lego should face
this challenge. For massive growth Lego must invest their time and workforce on double
rate. Lego also ensure that they have enough shelves in toy stores, so they can actively
sell it products. In toy trade kids always looking for something new that's why Lego must
try to fulfil kids expectations and also try to cut the price to deal with dead products.
Investing in long-term growth: Lego must invest in long term growth. They must try to
develop their business in different countries for massive growth, they also can try store
expansion it helps them secure sales growth (Balakrishnan, and et.al., 2020.). It can
develop attractive stores, so they can give its brand awareness among its buyers and
consumers. They can also try to create long term goals for the company and to fulfil
these goals they can use different strategies and plans.
Building a bright future: This challenge help Lego to create solid growth strategy for the
company. Lego company can also try to expand their business in India because Indian
population is exponentially increases and it will be advantage for Lego. Expansion in
India help Lego to grow their business and increase its profitability. Lego can also try to
expand their business online on e-commerce platform because new generation is move
to online shopping and addicted to social media so Lego can use e-commerce website
and social media to attract more customers. It can also open more store in existing
countries to provide more service and to attract new customers.

Learning with Competitors growth Strategy: Lego must learn from its competitors, so
they can provide best and unique products. Lego can adopt competitors growth
strategy, so they can rapidly grow in market (Iglesias, and et.al., 2020). Lego must
explore new market and try to convenience competitors for partnership, so they can
increase probability. It can minimize risk by researching consumers and try to sell their
products to native shoppers, so they can sell their products easily. Learning with
competitors help Lego to understand competitors growth strategy and also help in
competitive advantages.
Staying Graceful: Lego always show its graceful attitude towards its customer and its
employees and it recommended that stay graceful attitude is important for the company
to create positive environment and culture. Lego should try to create immersive
experience for employees and customers, so they can motivate and inspire from the
company. Lego should update its product marketing strategy to attract new customers.
They can try create campaigns to attract new customers, and they can also invest its
time in research and development to create new strategies which help company to
achieve its goals and objectives.
Its concludes that by facing these challenges Lego can expand their business and
establish massive growth and confidence. This recommendation help Lego to expand
their business globally in next five years and also help to attract new customers.
CONCLUSION
This report shows capabilities and product portfolio of Lego and also shows its market
opportunities and characteristics of business. This report helps Lego to understand their
marketing strategies and opportunities. Report also helps to understand Lego present
market strategy and how this strategy helps Lego to make its name in international
market. It also presented marketing strategies and tactics in terms of market selection,
mode of entry and marketing mix. In market selection it is defined target market and
segmentations, In mode of entry is explained different types of modes such as
exporting, franchising, licensing, acquisition and new establishing. In marketing mix this
report evaluated external factor such as product, price, people, physical, promotions,

place and process which affect Lego's growth. This report also include recommendation
for Lego what to do in next five years to expand their business and growth.

REFERENCES
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Hensmans, M., 2019. A new matrix for building platform portfolios: how companies can
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Iglesias, O., and et.al., 2020. Co-creation: A key link between corporate social
responsibility, customer trust, and customer loyalty. Journal of Business Ethics.
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Kogan, L., and et.al., 2017. Market selection. Journal of Economic Theory. 168. pp.209-
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