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Lego

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Emotional Benefits
An emotional benefit relates to the ability of the brand to make the buyer or user
of a brand feel something during the purchase process or user experience. “When I buy or use this brand, I feel ___.” Thus, a customer can feel safe in a Volvo, excited in a BMW, energetic with Coke or warm when receiving a Hallmark card. Evian, with its “Another day, another chance to feel healthy,” associated itself with the satisfied feeling that comes from a workout.
Emotional benefits add richness and depth to the brand and the experience of owning and using the brand. Without the memories that Sun-Maid Raisins evoke,
the brand would border on commodity status. The familiar red package links many users to happy days of helping Mom in the kitchen (or the idealized childhood for some who wished that they had such experiences). The result can be a different
user experience, one with feelings, and a stronger brand.
Self-expressive Benefits
Brands and products, as symbols of a person’s self-concept, can provide a self- expressive benefit by providing a vehi-
cle by which a person can express him- or herself. “When I buy or use this brand, I am___.” A brand does not have to be Harley to deliver self-expressive benefits. A person can be cool by buying clothes at Zara, successful by driving a Lexus, creative by using Apple, a nurturing mother by preparing Quaker Oats hot cereal, frugal and unpretentious by shopping at Kmart or adventurous and active by owning REI camping equipment.
When a brand provides a self-expressive benefit, the connection between the brand
and the customer is likely to be heightened. For example, consider the difference between using Olay, which has been shown to heighten one’s self-concept of being gentle, sophisti- cated, mature, exotic, mysterious and down-to- earth, and Jergens or Vaseline Intensive Care Lotion, neither of which provides a compa- rable self-expression benefit but similar func- tional benefits.
Ask yourself...
When I buy or use
this brand, I feel __________.
When I buy or use
this brand, I am __________.
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When developing your start-up’s value proposition, remember the definition for the value proposition: “A product’s value proposition is a statement of the functional, emotional and self-expressive benefits delivered by the brand that provides value to the target customer.”
What are functional, emotional and self-expressive benefits? These terms are explained below.
Functional benefits are based on a product attribute that provides the customer with functional utility. The goal is to select functional benefits that have the greatest impact with customers and support a strong position relative to competitors. However, it is important to keep in mind that functional benefits often fail to differentiate, can be easy to copy and may reduce strategic flexibility.
Examples of functional benefits include the phone capability of an iPhone, the thirst-quenching offered by a bottle of water and the warmth of a wool sweater.
Emotional benefits provide customers with a positive feeling when they purchase or use a particular brand. They add richness and depth to the experience of owning and using the brand.
Examples of emotional benefits include the “feel-good” factor when purchasing groceries carrying a fair-trade label or when donating to charities such as the Heart & Stroke Foundation. Buying local or organic foods has also started to carry emotional benefits, although most brands in these areas are niche brands that are currently not well known to others than enthusiasts.
Self-expressive benefits provide an opportunity for someone to communicate his or her self-image. They heighten the connection between the brand and the customer by focusing on something linked to his or her personality. Self-expressive benefits focus on the act of using the product, as opposed to the emotional benefits associated with the result of using the product.
A self-expressive benefit can include the elegance and the feeling of being cool projected by the Apple iPhone, the raw masculinity projected by the Harley-Davidson motorcycle brand or the luxury displayed by carrying a Louis Vuitton bag.
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Developing a value proposition is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, where Value = Benefits - Cost (cost includes risk)
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The LEGO system offers two distinct value propositions: 1. To children: A super fun toy you never get bored of. LEGO sets and elements offer children endless possibilities with themed and non-themed pieces that can be turned into the EXACT toy children want to play with at any time. 2. To parents: A learning toy that promotes imaginative discovery, self expression and an awareness of how physical objects relate and interact with one another... but so "cool" that your kids don't even know the are learning!

Either one of these value propositions is great for a toy - but the thing that really sets the LEGO system apart is that they combine the two. It's like the "tastes great - less filling" pitch for toys.
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If you're asking, what is their Unique Selling Proposition is (ie. Why can't someone else come along and sell blocks just as successfully) - I'd have to say that their investment in multi-vertical imaginative building (space, castles, future, modern towns, cities, etc.) as well as licensing (Star Wars sets, Harry Potter sets, etc.) and multi-media efforts (phsycial blocks, video games, etc.) make them a lasting brand with a lot of value for their users. They have a playset for you no matter what your interests are.
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I think the most important value proposition to parents is that children are "forced" to use their imagination to be able to play with, and since you can build a project for as long as you want with the help of as many others as you want, it is a pretty good exercise of patience, constance, team work, leadership, etc.

Additionally, children can play with their own brothers/sisters non competitively.
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LEGO Case Study | 7
2 | Meaning & Value Proposition
LEGO has built its solid reputation by providing an experience that encourages creativity and self-expression. The power of LEGO’s design is the building blocks that enable imagination and self-creation, where the user can be the design manager, creator and manufacturer. LEGO understands “the value and the ways of encouraging free-play in children”
(LearningInstitute, 2011) and designs products accordingly.
LEGO is successful at satisfying their customers through sustainable value creation strategies and customer focus. LEGO’s value proposition differs for each customer segment.

Children: LEGO is designed as a fun toy offering fruit for thought and new, endless possibilities. (Honoway, 2011).

Parents: LEGO is a‘disguised educational tool’that encourages their children to become more imaginative and expressive of their thoughts. Additional value is added to the brand through online resources available to parents, including ‘LEGO parents’ and ‘Learning Institute’ research papers (on child development produced from collaboration with experts in the field). (Osterwalder, 2006).

Educational Institutions
LEGO is increasingly used in classrooms to enhance learning and develop skills in specific subject areas such as robotics, programming, creative thinking and social skills. To support educators, LEGO provides training resources (Education, 2011).

Others
The LEGO system is frequently cited by many leading organizations... as a specially creative play material used in learning contexts by institutions throughout the world” (LEGO, 2009). LEGO adds value by enabling team building and problem solving in environments such as the workplace (through LEGO SERIOUSPLAY®, a consultancy tool).
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LEGO Factory substantially expands the scope of the off-the-shelf kit offering by giving LEGO fans the tools to build, showcase, and sell their own custom designed kits

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