©2016 The LEGO Group

Innovation driven by qualitative insightsDIGITAL 2016AARHUS UNIVERSITY CONFERENCE

Sabine Müller, Sr. Analyst, Global Insights, LEGO

Today, I will talk about…

│ Myself -Background and current work

│ The LEGO Group - at a glance

│ Market Research / Global Insights –How qualitative consumer insights drive innovation efforts

│ Methodology Innovation -How digitalization offers new ways of collecting and analyzing consumer data

│ Take-aways

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Who am I?

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What do I do?

Why this drives me?

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Innovation & Trends

Data Analytics & Big Data

Industry & Competitor

Markets & Shoppers

Brand & Business LEGO Experiences

GLOBAL INSIGHTS

The projects I am involved in

Foundationalresearch

• Knowledge platform• Future strategy• Business decisions• Understand trends & megatrends

Conceptresearch

• Exploring and evaluating new ideas, themes, stories

• Identifying elements of impact – what works and what doesn’t?

Communicationresearch

• Evaluating comprehension and appeal of communication material

• Understanding communication platforms

The LEGO GroupAt a glance│60% product innovations every single year

Our Mission

Inspire and Develop the Builders of Tomorrow

…by globalizing and innovating the LEGO

System in Play

At a Glance

35,780

turnover 2015operating margin

employeesEnd 2015

of sales are novelties

Sold in more than

countries

10 years of consecutive

growth

The largest toy company in the world

million 34%

130

60%

15.462

Danishfamily owned

More than

Market ResearchGlobal Insights│How qualitative consumer insights drive

innovation efforts

Product innovations timeline

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To be innovative, understand your consumers!What are they buying

and why? What do they think about our products?

What digital platforms do they use?

What do they think about our campaigns?

Where and how do consumers shop?

What do they think about new LEGO

concepts and ideas?

How many are buying LEGO products and

which?

What are differences and similarities across

markets?

ETHNOGR

APHY

FOCUS

GROUPS

PLAY

SESSIONS

CO-

CREATION

SHADOWI

NG

LEAD

USER

STUDIES

1990’sInnovating Inside the Box

Innovation needs to be insight-driven!

2005 > todayInnovating Around the Box

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In 2011, 90 % of LEGO’s

consumers were BOYS

“Construction toys had never worked for girls, for

whatever reason…”

Adding an entire new consumer group! - Girls

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1997Innovating Inside the box

2012

Innovating Around the box

First: What do the Girls of today like?

How they live What is important to them What toys they have

Their rooms express who they are, their aspirations and preferences.

Answer: Girls like friendship and peace

│When girls build, they tend to play on the inside

│Girls love little details

│Everyday-life play

The Lego Friends story centres on theeveryday lives and personalities of 5girls in a fictional town called HeartlakeCity. Each of the friends has a distinctpersonality and interests, such asanimals, performing arts, invention anddesign, that are reflected in the models.

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DigitalizationMethodology innovation│How digitalization offers new ways of

collecting and analysing consumer data

Digitalization forces change upon the business of market research

│A digital, social and mobile revolution is under way

│Altering how consumers engage with media, shop, browse, and tell others about their experiences

│Researchers have new opportunities to seize new media and platforms

│Market researchers need to adopt and master new methodologies

Source: Greenbook Research Industry Trends Report 2015

New methodologies support better, faster and more accurate qualitative consumer insights

Eye Tracking

Facial Coding

EKG/EEG

BIOMETRIC TOOLS

Mobile/Digital Ethnography

Social Media

Netnography OnlineUsability

Online Communities

ONLINE METHODS

Research Gamification

Wearables Based

Research

Virtual Reality

EMERGING METHODS

New Market Research technologies are trending

Source: Greenbook Research Industry Trends Report 2015

Eye Tracking & Facial Coding

Source:www.tobiipro.com/

Eye Tracking & Facial Coding

│Understand where consumers look and how they feel about that stimuli

│Can support fast iterations in packaging development

│Do consumers see and notice a package on the a cluttered shelf?

│How well do kids understand our building instructions?

Source:www.tobiipro.com/

Mobile Ethnography & Digital Diaries

│“An ethnographer in your pocket”

Source:www.ethosapp.com

Mobile Ethnography & Digital Diaries

│Understand the consumer journey

│“Watch” as parents and children go about their lives

│How are they playing in their natural setting?

│How do they relate to LEGO products or prototypes in different moments of everyday life?

Other methodology innovations include

│Wearable Tech for tracking play behaviour

│Netnographyto track consumers’ lifestyle, product & brand choice

│Online Communitiesto collaborate, co-create, engage and innovate with consumers (ideation-iteration-validation)

Take-aways

Qualitative consumer research cannot be replacedBig Data Analytics is on the rise and surely important, but qualitative research and interpretation of consumer inputs is absolutely invaluable to understand consumer behaviour and needs which ultimately aids innovation.

These are exciting times to be a researcherMarket researchers need to experiment, adopt and master new innovative methodologies. Join us in Global Insights at LEGO!https://www.lego.com/en-us/careers

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