Hi, I have one for lola, at the beginning i only used the "grass carpet" and not the plastic container because i thought it was going to be hard for her to step on it (she was only 1.5 lb.)
so i used it with a pee pad underneath and she did the same thing as ur puppy, she laid on it all the time, all what i did was to say "NO" and take her off of the grass pad.
whenever she was going to pee, i'd bring her on the pad and say " go pee pee" sometimes she walked away and i would bring her right back to the pee pad until she pee.
it actually takes time but is well worth it, i don't have to let her out every hour, in rainy days i don't have to worry about letting her out and getting her all wet, even when i leave the house for long periods of time, i don't worry about her having to "hold it" for so long because i know she has her grass pad in the house. I def recommend the grass pad.
the first 1 or 2 weeks i used a spray that "smells" like pee and it is supposed to help them know they need to pee.
Good luck!!!