7BSP1271 Marketing Across Cultures Assignment Sample

Global marketing strategies

Introduction to the business

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The aim of this study is to make understanding about how global corporation strategically manages its marketing operations across the markets and different cultures. In respect to this study, the report critically analyse Lego global marketing strategy in order to suggest them future 5 year plan for bring improvement in their marketing strategies (Griffith and Hoppner, 2013). This is because future is uncertain the external factors such as political, social changes instantly so in that case, it must to have 5 year plans for successfully retain the global marketing strategy and able to achieve the huge success.

Lego is the selected firm and its global marketing strategies have been analysed in order to prepare plans. Basically, it’s a Danish toy production firm based in Billund and it is best known for the manufacture of Lego-brands toy majorly of interlocking plastic bricks (Lego, 2021). The Lego group consist of several amusement parks around the globe and each of them known as Legoland and it also indulge in the operating of retail stores (Baena, 2019). It’s a largest toy manufacturer in world and is owned and managed by Kirk Kristiansen family in Billund, Denmark. The company operates in 30 countries across the globe and have association with 50 companies worldwide. Since, it works with more than one country; Lego is constantly interacting with diversified cultural values and people. Still, it managed to hold good position in toy production market as retail firms have large faith over the Lego plastic coloured interlocking plastic brick toys due to its supreme quality and creativity. But with the constant pressure on external threats somewhere create a need to analyse the current position and marketing strategy of firm as people more recognised of brands as compare to production firms. So it’s must to evaluate that how much recognition it has among the potential customers.

Company capability and product/service portfolio

In order to evaluate Lego global marketing strategy, the use of secondary sources is best to get the global level data. Under this, internet, journal articles and e-books are referred to understand the different global strategies and Lego marketing tactic to deal in multiple markets (Tassey, 2013). This helps to understand the company current capability and product and service portfolio.

According to Mikheeva (2017) Lego has used growth strategy to expand their business at global level. It has been delighting experiences for kids and it is specialised in towering giant in the toy industry. The firm has used growth strategy through explore the international market with their coloured interlocking plastic brick toys. This product line is quite famous among the kids. This helps them to expand the business in multiple markets. But in last few years, Lego reported first drop in sales and profits in US and part of Europe. The reason behind such losses due to Lego has reached to maturity stage in these markets and it also invested massive growth as it tripled their workplace and number of lines they offered. This has led the firm over-extended. Stock was piling up in warehouse because firm has too many product line and there were just enough room on the shelves in toy stores (Xu et al., 2017). These areas become responsible for the high cost investment within which returns didn’t cover. That’s why, Lego failed to grab the profit and revenue in US and Europe parts of country.

After that also it continues to use its growth strategy as it recently diverts its focus area from western countries to Asian market. Likewise, Lego decided to set the store in china under its growth strategy within which it has put lot of money on opening of stores while shipping less product to retailers in US and Europe. This kind of strategy helps the firm to become competitive and engage their growth rate for many years. In respect to achieve their growth strategy, it always ensures that they used right global marketing strategy which along their business model (de Andrés et al., 2017). Likewise, it invested large on the retail store displays units along with social-media sites to attract the people. These kind of practice included huge demand for the Lego toys in different market. These practices are followed by Lego to compensate their losses and include growth in their business.

7BSP1271 Marketing Across Cultures -Company capability and product/service portfolio

(Sources: Booker, 2019)

This market diversification strategy of Lego proved to be effective as they returned into growth again in 2018 with profits and sales both increased by 4% (Mayer et al., 2015). CEO Niels Christiansen has opened 80 more stores in china during 2019 by adding up with existing 60 stores.

Product Portfolio

7BSP1271 Marketing Across Cultures-Product Portfolio

(Sources: Loredana, 2017)

In respect to BCG matrix, it become easy to identify that which product and service of Lego own what position and what kind of improvement or variations that firm need to adapt.

Star:- it indicate those products which have rapid growth and dominant market share. Likewise, it is found that Coloured interlocking plastic block toys are the ones that helped Lego to get enter into international market and achieve the growth rate (Kang et al., 2020).

Question Mark:- it indicated that products in high growth markets with low market share. Star war products are the ones that has high growth in market but it has less market share due to the toys of star war tend to be quite expensive.

Cash Cow:-  It indicates the Products in low growth markets with high market share and these are the least expensive colors toys of Lego such as bright yellow green, reddish brown and bright red etc. these products are high in demand in market due to inexpensive in nature but it does not majorly contribute towards high growth for the firm (Hussain et al., 2013).

Dogs:- These are the products with low growth or market share. This situation currently Lego is facing in the areas of North America and Europe where they have least market share and growth in the tiny plastic brick product category.

On the basis of this matrix, it is stated that firm need to bring changes in their product and marketing strategy in order to hold existing market and capture new regions in order to move towards the growth.

Market/Environment opportunities and characteristics

The external factors are considered as forces that are uncertain in nature and it must to evaluate timely in order to make changes. In concern to this, Lego used the PEST and SWOT tools to identify the firm current performances and external threats and opportunities to lead the market.

SWOT analysis supports the Lego to understand their strength and external opportunities within which it directs their actions (Jenabi et al., 2013).


·       Strong brand name and reputation

·       Emphasis on quality and safety

·       Strong financials with sustainable growth

·       Investment in expansion of business in across the global market



·       High pricing for the toys

·       Less focus on integrated marketing activities




·       Emerging market of china and India would provide huge opportunities to grow



·       Increasing competition from other toys and online gaming segments

·       Threat from counterfeit and cheap imitations


On the basis of above analysis, Lego identified the opportunity related to scope in china and India about the expansion of product in these markets. Due to which, when Lego got to know about the failure of interlocking plastic block toys in US and Europe market then it started moving towards China market through open stores (Bai and Chang, 2015). This helps them to get new customer base and it supports them to compensate the loss of US and European market.

This way, Lego usually recognise the opportunities and gain success in this competitive environment. But at the same time, the frequent innovation in the digital marketing is becoming threat or complex activity for Lego as they require the skilled staff to deal with change management. The firm is already struggle with retaining profit over the expenses. In that case, the hiring of new skilled staff and adapt the technology become a complex activity for the firm (Phadermrod et al., 2019). That’s why; the firm usually indulge less on the digital marketing. Moreover, increased competition give rise to the innovation at every step and the chances of substation of product is also high. It has affected the firm on adverse manner which resulted into the losing market share in some market and it generate the need for the firm to regain its position through invest in the innovation line along with market expansion (Yuan, 2013).

Marketing Strategies and Tactics

Market selection – Key market[s] and target customers

The clients are needed to be chosen in the association so it could give them quality items and administrations for having their steadfastness towards the association. Various clients portion is available in the market that is needed to be distinguished and assessed so it could have its creation and improvement in equivalent to per the necessities of the clients. The association targets procuring high benefits with viable administration of cost to separate exercises in the organization. It makes it to have development and advancement at the individual level in the market with the procuring of high income with the improvement in deals of the association (Blythe, 2017).  The major target of the organisation is children who have great level of interest in purchasing toys and help in leading into right direction. It also target parents who have high expenditure power so that they could have products from it.

Buy comfort, quick conveyance, item customization and so forth are fundamental for the clients as it encourages them fulfil their necessities or assumptions. It additionally helps in conveying the necessary yield, which is normal by clients with its reasonable conveyance measure. It causes the clients to achieve benefits and cause the association to have its altruism on the lookout. Additionally, item customization causes the clients to have the items according to their decision and have their impact over them. Hence, the association should have such parts of meeting rivalry and having ideal development on the lookout. Various techniques and practices are received in the association for meeting with assumptions for the clients and coming to the ideal portions. It makes the use of right channels and online application for coming to the clients and picking up a favorable position for having improvement with viable correspondence driven with them (Camilleri, 2018). Customary checking and direct correspondence make the association arrange with salesforce for having required deals on the lookout. It is needed for dealing with the necessities of the clients and having its business on the web. The E-business exercises lead to dynamic usage of assets and coming to the clients with the utilization of sites and online applications. Deals and advancement approaches are utilized in the association for driving the correct way and successfully picking up the preferred position. Various deals and advancement approach, for example, online media apparatuses, applications, sites and so forth would make the organisation to upgrade the brand an incentive on the lookout and advance its items and administrations on the lookout.

Mode of market Entry

The mode of entry chosen by the organisation is to have its optimal sales made to different retail stores for reaching to the customers. It leads to usage of merger and acquisition is the company like Lego for making its existence into international market. It is required for dealing with the needs of the customers and having growth at required rate. It makes the organisation to have merge with different retailers so that they could have these products and sustain in the market. It leads to engagement of employees in a required manner so that they could have an understanding of different culture and make the customers have such products (Ahi et al., 2017). It is required for the organisation to have an understanding to different legislations and political values so that they could meet with respective demands of the customers. It is necessary for the organisation to have right mode of entry so that they could meet with the obligation of the market and lead to grab a position in it.

Marketing Mix

Price: It is the right value that the end buyer intends to pay when purchasing an item. It differs relying generally upon whether the shopper sees centrality, for example, however the expense is more noteworthy than that of the financial handiness accordingly the item’s buy would then drop. Indeed, even previously, the certainty of Lego contenders across. Lego to create items and administrations an item improvement technique would be sensible. Serious estimating identifies with the strategy for picking ideal proposals to rescue the most once again from any opposition related product or administration situated market. This rise empowered Lego to hit purchaser creation and utilization balance conditions. The stability in price of products and services helps in attracting the customers and have profits in the company.

Product: that is either abstract or quantifiable basically and seems to fulfil the specific interest or want of the buyer. The merchandise generally receives the centre supplies administration life despite the fact that Lego is currently at the dispatch stage with respect to improvement in companies (Thabit and Raewf, 2018). That being stated, the assembling of items and administrations by its own partners for having its approach to reach to customers directly. The product that will accomplish by Lego anyway should be of excellent quality. It makes the organisation like Lego to have variety of products in the organisation for satisfying the customers and make them to have their active engagement.

Place: This thing spreads out the strategy for conveying the merchandise to customers. Situating strategy incredibly answers the correct channels of trade for a specific thing. Casual conveyance is the cycle by which to guarantee that Lego conveys the products to end clients. That is on the grounds that it’s a UK Consumer products centre types of gear store maker and retail location. web based shopping was its most grounded aberrant showcasing stage to be sought after by Lego. It makes the delivery of its products and services to the customers who have high demands and purchasing power. Thus it makes it to have different retail stops at various place so that it could reach to the customers effectively.

Promotion: This measurement is focused on examining different brand contact techniques and furthermore some advertising campaigns. These may incorporate brand mindfulness, limited time offers for deals, special arrangements and promoting efforts. Advanced or web-based media organizations would be the least expense and maybe most profitable type of advertising that Lego may use to attract the likely and make an improvement in the profitability of the company (Lahtinen et al., 2020). Different promotional tools such as social media, web technologies and applications make the organization to have large number of customers and make them to reach to them effectively.

Justified with recommendations for the next 5 years

On the basis of above analysis, it is identified that Lego is somewhere failing to adapt the right marketing strategy due to it’s overshadow among the competitors (Mago, 2017). Here are the following recommendations that Lego need to understand in order to stay sustain in longer duration for next years.

  • Content marketing is a classic marketing technique that remains one of the strongest options in present and even future scenario (Lavriša et al., 2018). This is because people now more attracts on the positive and creative contents over blog posts and social-site channels. These areas considers as a valuable sources to retain or attract the larger customer base.
  • In 2020, it is found that people prefer to have more personalisation ads within which people able to relate it and reflect their specific personalities and interests. One of the best way to perform such area through provide personalised message to potential customers as this helps the people to recognise the brand for longer duration (Kotabe and Helsen, 2020). The personalised messages have more conversion rate as compare to other marketing tools. That’s why, it would be effective to adapt the personalised email advertisement for grabbing the customer attention for Lego when they enter into new markets like China and India and even they can use this strategy in their existing market with new product line. This will helps them to retain their position for longer duration.
  • Interactive marketing strategy can also prove to be effective for Lego as people in present scenario get used to the still photos so the graphical designs and moving pictures would take instant attention of their over the brand product displays. So the use of moving and interactive cartoons over toy shops of Lego would help them to grab kids and their parent’s attention in short span of time. It resulted into easily conversion into potential customers.
  • Shoppable posts is another important and recommended platform that lego should involved in it. This can be done through merge with social-media platform like Facebook or Instagram (Bala and Verma, 2018). It is because social-media has been a hotspot for advertising for several years now but one of the most interesting emerging trends in marketing is shoppable posts. For example, Facebook marketplace allows different brands to register themselves and within which Facebook put ads or promote their product in the user pages. This way user does not go to the business sites to buy the product. But the social-site makes it easy for customers to direct contact the brand and place order in it.
  • Social-media influencers would be another influential and effective marketing strategy. this is because now You tubers and Bloggers are increasing in across the globe within which brands have option to contact them and ask them to use the product so that they can able to get high attention among maximum people. In that case, Lego can able to get new customer segment base.
  • The consumer buying decision theory cited that motivation factors are playing an important role to influences the consumers. This is because if consumer tends to be encouraged to buy the particular product then only it takes actions. For this, brand need to give reason to people within which they find motivation to buy the toys for their kids. Likewise, it is found that kids are always inquisitive about everything and want to learn new things (Lavriša et al., 2018). So creation of story behind the selling of toy would attract the consumer to buy it. Likewise, plastic building block could help the kid to learn about the counting and create skill of making things systematic through attach one block with another.

Hence, these trends of marketing would help Lego to stay competitive in future market as well and give strong threats to its key competitors.


From the above study, it is concluded that Lego is performing well with its growth marketing strategy but its existing product range such as building block toys reached to maturity stage in the countries like US and Europe. In that case, the firm requires to holding its position through bring variation in its product and marketing strategy through focus on the content promotion, social-media influencer’s usage. These areas would help them to hold the competitive position in upcoming years.


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