Gr Gree een Mov ovem emen ent A McDonald’s Sustainability Project Vin Sathyamoorthy Mitch Daar Yousef Shaban Sahand Sepehrnia November 14, 2012
Ch Challenge allenge Contents Clien ient and d Context ext Methodology Step 1: Initial Observations Step 2: Customer Segmentation Step 3: Detailed Observations & Key Insights Step 4: Concept Business Case Analysis Kellogg Design Challenge | Green Movement | November 14, 2012
Probl Pr oblem em Statement Kellogg Design Challenge | Green Movement | November 14, 2012
Challenges Ch allenges wi with th Sustainability • People want to get in and get out quickly (“T o go”) • Fast & easy lots of prepackaged goods (creates excess waste) • Customers are accustomed to a certain way of disposing waste – single dump into trash, no sorting Kellogg Design Challenge | Green Movement | November 14, 2012
It appears as if there is a fundamental disconnect between what McDonald’s can do well and what they can do sustainably.
Ch Challenge allenge Contents Client and Context Methodol dology ogy Step 1: Initial Observations Step 2: Customer Segmentation Step 3: Detailed Observations & Key Insights Step 4: Concept Business Case Analysis Kellogg Design Challenge | Green Movement | November 14, 2012
Met ethodology odology Our team followed a four-step process in deriving a solution. Step 1 Step 2 Step 3 Step 4 Visit Identify & Target a Develop a McDonald’s define segment and solution to and observe customer observe them address patrons segments further target’s needs Kellogg Design Challenge | Green Movement | November 14, 2012
Ch Challenge allenge Contents Client and Context Methodology Step 1: Initial Observations Step 2: Customer Segmentation Step 3: Detailed Observations & Key Insights Step 4: Concept Business Case Analysis Kellogg Design Challenge | Green Movement | November 14, 2012
Our team visited several McDonald’s locations to observe customers.
From these initial observations and interviews, we identified key customer segments who dine in at McDonald’s regularly, and studied their habits.
From these initial observations and interviews, we identified key customer segments who dine in at McDonald’s regularly, and studied their habits. Hourly Wi-Fi Workers Users Teenagers Retirees Families
What do these customers want out of McDonald’s? Hourly Teenagers Families Wi-Fi Users Retirees Workers Description Teenagers on Workers (typically Parents and kids Customers who 60 and older their way to/from hourly) on their sitting down for a come to McD’s to males who are school lunch break family meal, use free Wi-Fi retired from work typically after an service activity (e.g. soccer game) Core Need inexpensive Need to escape Need an easy Need a substitute Need a spot to consistent food the office to relax place to get a for Starbucks; socialize with Attitude and eat an meal and sit customers come friends, as well as affordable meal down between alone to do work to casually read activities the newspaper Order Type Value menu Full meal (burger, Meal for parents; McCafe McCafe, fries, soft drink) happy meal for sometimes kids accompanied with salad Time at 30-45 minutes 30-40 minutes 30-40 minutes 45 – 60 minutes 60+ minutes Restaurant
Key ey T akeaways Waste Produced • Waste common amongst all patrons – 45-60% cups (McCafes, Smoothies, Soft Drinks) % of total restaurant waste made up of • Customers throw away their soda cups paper products – translates to about with the liquid & ice (contaminates trash 2.5 tons/month bag) • Everybody wants to throw away trash quickly – even people who have spent a large amount of time at McDonald’s 10-15% (applies to retirees, kids, etc.) % of total restaurant waste made up of plastic products (polystyrene, polypropylene) Kellogg Design Challenge | Green Movement | November 14, 2012
Cups are a major source of waste across all customer segments. Children are more willing to try new activities that promote sustainability.
Ch Challenge allenge Contents Client and Context Methodology Step 1: Initial Observations Step 2: Customer Segmentation Step p 3: Deta taile led d Obse servati vations ons & Key Insigh sights ts Step 4: Concept Business Case Analysis Kellogg Design Challenge | Green Movement | November 14, 2012
Ob Obse servation vation Subjects Anu Uzma Ayana Yuvan Armaan Age 7 Age 5 Age 3 Kellogg Design Challenge | Green Movement | November 14, 2012
“ Can I play with your iPhone ?” “ I want to do a puzzle!” “ I want to show you my new toys!”
“ I like to play tennis … and with my golf club.” “ Use your imagination … pretend we have it!” “ George needs his shots … you can be the doctor giving it to him.”
Key ey Insights
Ch Challenge allenge Contents Client and Context Methodology Step 1: Initial Observations Step 2: Customer Segmentation Step 3: Detailed Observation & Key Insights Step p 4: Concep ncept Business Case Analysis Kellogg Design Challenge | Green Movement | November 14, 2012
We have the opportunity to motivate kids to recycle, while playing a game
Our solution is a simple game that is designed to provide high replay value by being easy to learn, but hard to master. Cup gets sucked Sucking motion through pipe, removes liquid traveling to top and dries out cup as it travels up Kid inserts cup here; it enters Cup bounces around pneumatic tube, Happy Meal toys, similar to those at awarding points (like a bank drive-thru pinball machine) windows Cups Only, Please! Dump any remaining liquid here first Happy Meal Box “ Wooosh !” Game • Instantly recognizable by kids • Shaped like a Happy Meal box; kids immediately drawn to its presence • Iconic house shaped box (roof comes together in point) • Golden arches are actually tubes that carry cups • Golden arches on top – “handle”
Ch Challenge allenge Contents Client and Context Methodology Step 1: Initial Observations Step 2: Customer Segmentation Step 3: Detailed Observations & Key Insights Step 4: Concept Busi siness ness Case se Analys ysis is Kellogg Design Challenge | Green Movement | November 14, 2012
Analysis of “ Wooosh ooosh !” Considerations Solutions Benefits Initial R&D and Machine Cross-promote with Hi-C Break-even faster with Costs brands and happy meal toy constant revenue stream manufacturers Kellogg Design Challenge | Green Movement | November 14, 2012
Analysis of “ Wooosh ooosh !” Considerations Solutions Benefits Initial R&D and Machine Cross-promote with Hi-C Break-even faster with Costs brands and happy meal toy constant revenue stream manufacturers Possibility of Target only cups, liquid Reliable Recyclable Waste; contamination separation, upward Limit leakage of trash bags “ woosh ” to eliminate residue liquid Kellogg Design Challenge | Green Movement | November 14, 2012
Analysis of “ Wooosh ooosh !” Considerations Solutions Benefits Initial R&D and Machine Cross-promote with Hi-C Break-even faster with Costs brands and happy meal toy constant revenue stream manufacturers Possibility of Target only cups, liquid Reliable Recyclable Waste; contamination separation, upward Limit leakage of trash bags “ woosh ” to eliminate residue liquid Trash Volume Compact cups by up to 8x Smaller trash volume = Fewer trips to empty trash; Reduce waste management pickups Kellogg Design Challenge | Green Movement | November 14, 2012
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