#M4BW LEGO responds to millennial parents wanting sustainable toys

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A recent report from the Toy Association (you have to buy the report, but a short summary can be found here) suggests that millennial parents take values into account when buying toys for their children. For example a quote from the report indicates “Parents want to know that the products they buy will not harm the environment. Offering a toy that is biodegradable or an initiative that encourages toy sharing will appeal to today’s environmentally-conscious consumers.”

While there has always been a niche for sustainable toys (see for example a local-to-me company BeginAgain), the market is growing and now the world’s largest toy company is jumping in. Read more about LEGO’s new kit with pieces made from plant-based materials and how LEGO plans to have its products be entirely sustainable ty 2030 in “As millennial parents demand sustainable toys, Lego is perfecting plant-based bricks,” NBCNews.com, August 2, 2019).

An instructor might add this nugget of knowledge to students when discussing segmentation and targeting (Chapter 4). We open that chapter with a LEGO case, but this is so new, we don’t include the millennial parent segment in our discussion. It might also fit when you discuss Product (Chapter 8) and want a marketing for a better world spin on the topic.

From green ketchup to Colgate lasagna: Companies’ biggest product failures

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It is always fun to show students product failures. Especially like those shown here. I think intuition alone would tell most of us that these were not such good ideas. But it is good for students to see that even big companies, with lots of money and smart people, can make mistakes.

You might want to add a few of these images to your coverage of product (Chapter 8) or new product development (Chapter 9). Colgate Lasagna (really?) could be used with the growth opportunity matrix in Chapter 2 as an example of why diversification is so risky. Or the Bic Her (pens designed for women) might be an example of segmentation and targeting gone too far.

#M4BW Japanese companies use technology to create value for an aging population

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Japan is concerned about how it will care for its elderly—especially those with dementia. The Japanese population is aging quicker than most of the world. Already, a quarter of the Japanese population is 65 or older (compared to just 15 percent of Americans). By 2025, Japan predicts a shortfall of almost 400,000 senior caregivers. Some companies are developing different intelligent agents to help fill the void.

Robots are particularly popular. Sony’s robotic pet dog Aibo, and SoftBank’s Paro, a robotic baby seal, have been shown to elicit emotional responses and yield benefits similar to live animal therapy (without all the owner responsibility). SoftBank Robotics’ humanoid companion “Pepper” recognizes faces and human emotions and asks and answers questions; seniors enjoy chatting with Pepper, which also monitors patients’ mental health for doctors and family members. Advances like these can provide health care at lower costs and make for better experiences for an aging world.

For some more background you can have your students read “Japan Lays Groundwork for Boom in Robot Carers,” The Guardian, February 5, 2018 and “Toyota, SoftBank Join Forces to Build Self-Driving Cars That Deliver Meals, Health Care,” Wall Street Journal, October 4, 2018 (subscription may be required).

This describes a demographic trend (part of context and the external market environment in Chapter 3). It might also tie into a discussion of market segmentation (Chapter 4) or product (Chapter 8).

Millennials are boosting some industries…

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As we point out in Chapter 3, marketing context, including the broader cultural and social environment can bring about threats or opportunities. As Millennials (those born between 1978 and 1994) have more discretionary income, they are being blamed for killing a number of different industries including cereal, department stores, beer, golf, and more (see list here). So this generation is definitely a threat to those industries.

On the other hand, Millennials buying behavior has boosted other industries, see “Coffee, travel, and skincare are among 12 industries millennials are boosting,” Fast Company, September 9, 2019. These examples can be used when you discuss SWOT (Chapter 2), the cultural and social environment (Chapter 3) or segmentation (Chapter 4).

Video Game Influencers

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Video games, once considered the domain of young kids and self-proclaimed geeks, are growing at an astounding rate.  According to NewZoo’s Global Games Market Report, the industry was expected to reach $138B in 2018.  With that growth and the emergence of esports we’re now seeing gamers stepping into the influencer role alongside traditional athletes.  One of those gamers, Ninja, has teamed up with energy drink producer Red Bull.

Red Bull wants to boost brand awareness in the gamer segment who frequently rely on energy drinks to power through long gaming sessions.  Red Bull’s campaign includes a contest that gives fans a chance to meet Ninja and have a gaming session with the superstar.  You can read more about the campaign in this Marketing Dive article.  The topic could apply to a discussion about segmentation, brand building, influencers and advertising/sales promotion.