working session 1
Question 1: PROPOSITION ACQUISITION PROCESS
a) Describe how Lego’s consumers go through the different stages of the proposition
acquisition process.
motive development: recognition of the needs → what are people looking
for:
- something to keep the kids busy off digital tools
- you want the kid to learn new skills through play
- i need a gift for a child
=> not: i saw an ad and now i want LEGO
information gathering:
- googling,
- talking to other parents/friends
- visiting stores
=> very active: personal sources are relevant, but also commercial sources
How is the experience available online consistent with what people find offline?
proposition evaluation:
- establishing the gathered brands to form an ‘awareness set’ (= the array of
brands that may provide a solution to the problem)…
- limited comparison of preferred options: online comparison of features and
prices
- going to a store (showrooming) to asses
proposition selection:
- … and moving these brands into an ‘evoked set’ (= the array of brands that the
consumer seriously considers before making a purchase)
- deciding which one to buy
acquisition/ purchase:
- online purchase
- purchase in store
- 2nd hand purchase
re-evaluation:
- playing
- re-assembling
- comparing with others
- sharing the experience
b) Which role do children have in the decision making process?
Consumers’ buying roles:
- child paying with own pocket money
→ payer: pays
→ buyer: actual purchase
- child makes birthday list
→ initiator: initiates idea
→ influencer: influences
- child paying with gift card received from grandparents
→ buyer: actual purchase
- child playing with the toy
→ user: consumes
, - child choosing toy in store with budget given by grandparents
→ decider: ultimate buying decision
Question 2: VALUE PROPOSITION + MACRO ENVIRONMENT
a) Which macro trends have an impact on Lego? (these can be trends that are referred
to in the case or other trends that you think could also have an impact)
Classify the trends according to the DESTEP model.
technological: new technologies emerging (AI, VR,...)
→ implication:
possibility of missing the boat if no investment in research or if research remains
limited to own category
new competitors / competitive products arising embracing new technologies
→ new materials/ recycling options available
→ automation that reduces labour costs
ecological:
→ global warming leading to scarcity of resources
→ recycling
→ eco-minded of consumer base
political:
→ corrupt country
→ taxes
→ one child policy
→ legalisation/ privacy laws
→ international boycotts
wrong answer: company promoting certain lifestyle
= reactions of the company itself, not external trends
b) Do the macro trends represent a threat or opportunity? Why?
threat: if you don’t follow the trend it can be disruptive
opportunity: if you follow and adapt to trends it can be an advantage
c) How can the company respond to them?
- Continuous innovation in both physical and digital play.
- Open innovation & partnerships with tech, sustainability and entertainment
companies.
- Agile supply chain & global risk management.
- Brand positioning around learning, creativity and sustainability.
- Customer-centric design based on insight and co-creation
Question 3: Research methods
Imagine Lego is thinking of launching a clothing brand.
Question 1: PROPOSITION ACQUISITION PROCESS
a) Describe how Lego’s consumers go through the different stages of the proposition
acquisition process.
motive development: recognition of the needs → what are people looking
for:
- something to keep the kids busy off digital tools
- you want the kid to learn new skills through play
- i need a gift for a child
=> not: i saw an ad and now i want LEGO
information gathering:
- googling,
- talking to other parents/friends
- visiting stores
=> very active: personal sources are relevant, but also commercial sources
How is the experience available online consistent with what people find offline?
proposition evaluation:
- establishing the gathered brands to form an ‘awareness set’ (= the array of
brands that may provide a solution to the problem)…
- limited comparison of preferred options: online comparison of features and
prices
- going to a store (showrooming) to asses
proposition selection:
- … and moving these brands into an ‘evoked set’ (= the array of brands that the
consumer seriously considers before making a purchase)
- deciding which one to buy
acquisition/ purchase:
- online purchase
- purchase in store
- 2nd hand purchase
re-evaluation:
- playing
- re-assembling
- comparing with others
- sharing the experience
b) Which role do children have in the decision making process?
Consumers’ buying roles:
- child paying with own pocket money
→ payer: pays
→ buyer: actual purchase
- child makes birthday list
→ initiator: initiates idea
→ influencer: influences
- child paying with gift card received from grandparents
→ buyer: actual purchase
- child playing with the toy
→ user: consumes
, - child choosing toy in store with budget given by grandparents
→ decider: ultimate buying decision
Question 2: VALUE PROPOSITION + MACRO ENVIRONMENT
a) Which macro trends have an impact on Lego? (these can be trends that are referred
to in the case or other trends that you think could also have an impact)
Classify the trends according to the DESTEP model.
technological: new technologies emerging (AI, VR,...)
→ implication:
possibility of missing the boat if no investment in research or if research remains
limited to own category
new competitors / competitive products arising embracing new technologies
→ new materials/ recycling options available
→ automation that reduces labour costs
ecological:
→ global warming leading to scarcity of resources
→ recycling
→ eco-minded of consumer base
political:
→ corrupt country
→ taxes
→ one child policy
→ legalisation/ privacy laws
→ international boycotts
wrong answer: company promoting certain lifestyle
= reactions of the company itself, not external trends
b) Do the macro trends represent a threat or opportunity? Why?
threat: if you don’t follow the trend it can be disruptive
opportunity: if you follow and adapt to trends it can be an advantage
c) How can the company respond to them?
- Continuous innovation in both physical and digital play.
- Open innovation & partnerships with tech, sustainability and entertainment
companies.
- Agile supply chain & global risk management.
- Brand positioning around learning, creativity and sustainability.
- Customer-centric design based on insight and co-creation
Question 3: Research methods
Imagine Lego is thinking of launching a clothing brand.
