Working Session 1: Lego
1. Proposition acquisition process
Question 1a) Describe how lego’s consumers go through the different stages of the proposition
acquisition process.
Proposition acquisition process:
- Motive development → recognition of the need = entertainment. I need something to keep my kids
busy.
- Information gathering → you have a lot to search online. Googling, talking to other parents,..
- Proposition evaluation → establishing the gathered brands to form an awareness set. Personal
sources are relevant, but also commercial sources. Going to a store to asses.
- Proposition selection → and moving these brands into an evoked set.
- Acquisition/purchase → online purchase, payment method.
- Re-evaluation → potential loyalty. Seeing the child happy with the toy, talk with other parents
about the set,..
→ different processes for each product category.
Question 1b) Which role do children have in the decision making process?
- Initiator: I want this toy.
- Influencer: influences
- Decider: they decide which set they want.
- Buyer: the kids go to the store and get what they want.
- Payer: the parents pay it.
- User: playing with the toy.
- Gatekeeper: child refuses lego friends because “that’s for girls”
,2. Value proposition and the macro environment
Question 2a) 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 should also have an impact)
a. Classify the trends according to the DESTEP model.
b. Do the macro trends represent a threat or opportunity? why?
c. How can the company respond to them?
Demographic trends
→ Less children per household, there is more money for lego.
→ Older when having children: you have more money.
Economic:
→ Inflation: bad for lego, because if food prices rise, there is less money for buying lego.
→ unemployment, low wages,
→ uneven distribution of wealth in the country.
Socio cultural:
→ They don’t classify age. They try to make products for every age.
→ Increased interest in digital gaming of consumer base
→ Integrating you in the company and personalizing things.
Consumers expect brands to be inclusive and offer personalization/customisation.
→ ethical focus of consumer base.
Technological:
→ Their could be rapid technological innovations, robotics
→ They can innovate and integrate online, making a lego app with virtual reality (VR).
→ new technologies emerging: AI, VR
→ new materials/ recycling options available.
Ecological:
→ Global warming leading to scarcity of resources.
→ Recycling
→ Eco-mindedness of consumer base
Political
→ Corrupt country
→ taxes, one child plicy, legislation, privacy laws, international boycots
, 3. Research methods
Question 3a) Imagine Lego is thinking of launching a clothing brand.
- What would you recommend as a research approach to understand business potential?
- Which kind of research would you do first and why?
- Which kind of research would you do in a later stage?
- What would be your research question at each stage?
Objective – Source – Methodology
Research question:
First learn about what exists already:
- Is clothing interesting, is it profitable, is it a growing market?
- is it something that fits our brand
- focus groups, what are the associations people have with lego
- Who are the competitors/ how are they positioned?
⇒ all questions about the industry
Then dig deeper:
- What are consumers looking for?
- Which design/product would they like?
And then make it concrete:
- How much would they want to pay?
- How do we want to position ourselves?
What research do you use and why?
How big is the market? Secondary, quantitative, descriptive
Who are the competitors? Secondary, quantitative, descriptive
What are consumers looking for? primary, qualitative, exploratory
Which product/design would they like? Causal, primary, quantitative
How much would they want to pay? Causal, primary, quantitative
1. Proposition acquisition process
Question 1a) Describe how lego’s consumers go through the different stages of the proposition
acquisition process.
Proposition acquisition process:
- Motive development → recognition of the need = entertainment. I need something to keep my kids
busy.
- Information gathering → you have a lot to search online. Googling, talking to other parents,..
- Proposition evaluation → establishing the gathered brands to form an awareness set. Personal
sources are relevant, but also commercial sources. Going to a store to asses.
- Proposition selection → and moving these brands into an evoked set.
- Acquisition/purchase → online purchase, payment method.
- Re-evaluation → potential loyalty. Seeing the child happy with the toy, talk with other parents
about the set,..
→ different processes for each product category.
Question 1b) Which role do children have in the decision making process?
- Initiator: I want this toy.
- Influencer: influences
- Decider: they decide which set they want.
- Buyer: the kids go to the store and get what they want.
- Payer: the parents pay it.
- User: playing with the toy.
- Gatekeeper: child refuses lego friends because “that’s for girls”
,2. Value proposition and the macro environment
Question 2a) 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 should also have an impact)
a. Classify the trends according to the DESTEP model.
b. Do the macro trends represent a threat or opportunity? why?
c. How can the company respond to them?
Demographic trends
→ Less children per household, there is more money for lego.
→ Older when having children: you have more money.
Economic:
→ Inflation: bad for lego, because if food prices rise, there is less money for buying lego.
→ unemployment, low wages,
→ uneven distribution of wealth in the country.
Socio cultural:
→ They don’t classify age. They try to make products for every age.
→ Increased interest in digital gaming of consumer base
→ Integrating you in the company and personalizing things.
Consumers expect brands to be inclusive and offer personalization/customisation.
→ ethical focus of consumer base.
Technological:
→ Their could be rapid technological innovations, robotics
→ They can innovate and integrate online, making a lego app with virtual reality (VR).
→ new technologies emerging: AI, VR
→ new materials/ recycling options available.
Ecological:
→ Global warming leading to scarcity of resources.
→ Recycling
→ Eco-mindedness of consumer base
Political
→ Corrupt country
→ taxes, one child plicy, legislation, privacy laws, international boycots
, 3. Research methods
Question 3a) Imagine Lego is thinking of launching a clothing brand.
- What would you recommend as a research approach to understand business potential?
- Which kind of research would you do first and why?
- Which kind of research would you do in a later stage?
- What would be your research question at each stage?
Objective – Source – Methodology
Research question:
First learn about what exists already:
- Is clothing interesting, is it profitable, is it a growing market?
- is it something that fits our brand
- focus groups, what are the associations people have with lego
- Who are the competitors/ how are they positioned?
⇒ all questions about the industry
Then dig deeper:
- What are consumers looking for?
- Which design/product would they like?
And then make it concrete:
- How much would they want to pay?
- How do we want to position ourselves?
What research do you use and why?
How big is the market? Secondary, quantitative, descriptive
Who are the competitors? Secondary, quantitative, descriptive
What are consumers looking for? primary, qualitative, exploratory
Which product/design would they like? Causal, primary, quantitative
How much would they want to pay? Causal, primary, quantitative
