Final report Change and Innovation management PDF

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Dit is het final report van de opdracht New Product Development voor het van Change and Innovation Management voor de studie International Business aan de Universitat de Valencia. ...

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New Product Development

Sina Rust Dille Swart Jill van der Tuin Change & Innovation Management

Content Introduction Final problem About McDonald’s Methods of research Idea Why this problem needs to be solved Insights from the field Brainstorm for ideas for solutions Criteria for the best idea Concept & testing The best idea Testing Business model canvas

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Product development Implementation Recommendations References Appendixes

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Survey questions

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Introduction In this paper, we are going to discuss our proposal for the new product development project. The goal of this project is to solve a problem with a new product or service. We will explain the process on how we came up with the new product by telling about the problems we have come up with, which problem we eventually choose to solve, which solutions we came up with and which of these is the best idea to solve the problem. Later, we will elaborate on how we are going to develop the product and the results of the idea test marketing. To come up with problems we could solve, we have used our own imagination, but also made use of external sources like the internet, sites like battle of concepts (Battle of concepts, 2018). We came up with few ideas about problems: - The problem of food waste of the Mercadona. - The problem of unhealthy eating habits among students at Universities. - The problem that at Universities, the working space for the students’ needs to be improved because now it is not very appealing to them. - The problem that is caused for people by delays of trains and airplanes. - The problem of the huge amount of trash that is not being thrown away appropriately in trash cans by people after they have visited the McDonald’s and in particular the McDrive.

Final problem There was one specific problem that caught all our attention. The problem of the McDonald’s. First of all, because we all often visit the McDonald’s and have experienced this problem or were even guilty ourselves. If you go to the McDonald’s or McDrive you see a lot of trash surrounded on the property that is not in the garbage cans. Even though there are always more than enough garbage cans. Second of all, because in our opinion, it is a problem for which there are no alternatives yet at the McDonald’s and we thought this would be a great challenge for us to think of something that will reduce the amount of trash that is thrown on the ground, harming our nature and environment. Our assumption is that by solving this problem with a service or a product, the experience for the customers will improve, the impact of trash on the environment will be less and the cleaning cost for the McDonald’s will decrease. To define our research, we have decided to only focus on reduction of trash laying outside of the bins at the McDonald’s properties. We are not looking for a solution to handle the source of the trash: the plastic straws, cups or wrapping paper for the hamburgers etc. This is a problem that is beyond our limits since it is the case for almost every company that sells its products in wrapping or other disposable things.

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About McDonald’s In today’s world, everybody knows the McDonald’s. It is one of the biggest fast-food firms in the world. Founded in 1948 by the two brothers Maurice and Richard McDonald in San Bernardino. They started their first firm only selling hamburger fries and milkshakes (The Editors of Encyclopaedia Britannica, z.d.). Today McDonald’s is known as one of the most popular family restaurants with more than 37.241 restaurants worldwide and serving more than 69 million customers each day (Wikipedia contributors, z.d.). McDonald’s nowadays is much more than only a place where you can go for food. They adopted a lot of charity programs like the Ronald McDonald foundation, McHappy day, McDonald's Monopoly donation or Mcrefugee. With the McHappy day the collect money for the Ronald Mcdonald organization with provides the house for people who want to live near to the hospitals where their sick children are (Ronald Mcdonald kinderfonds, z.d.). If you don’t want to go into the restaurant of this famous fast food company, there is the option to go to the drive-in and order your food from your car. Or even to get your menu delivered to your door with the McDelivery service.

Methods of research After specifying on the problem we want to solve, we now had to come up with ideas to achieve the solution successfully. The research we have done in order to get to know more about our potential customers is based on two components. First, we wanted to observe the situation ourselves. Therefore, the group went to a McDonald’s branch in Valencia to do an on-site investigation on the customer’s behaviour concerning the littering of the packaging and other garbage within the company’s properties. The second aspect of our research rested upon an online survey we created to find out about people’s habits generally where we specifically wanted to find out if they would actually like the different ideas we provided and if they thought it would have any positive impact on the littering-behaviour.

Idea Why this problem needs to be solved People who have visited the McDonald’s or the Drive-In of the McDonald’s often do not throw away their garbage in the designated trash cans. For example, they are simply too lazy to step out of their cars and throw away their garbage on the ground. Also, the reason ‘other people also do not throw away their trash properly is an explanation given by people. This causes the cleanliness of the McDonald’s to be damaged. This not only costs the McDonald’s a lot of clean-up costs, also for the customers this is conflictive. An environment that is filled with empty cups, straws, cans, bags is very off-putting and not attractive for the customers. This also leads to a damaged brand image for McDonald’s itself. Not only is throwing away trash on the ground a problem for the McDonald’s itself and its customers, it is also harmful for the environment. A lot of trash that is thrown away on the ground will be spread into the environment by the wind or other causes. It is also not possible for the McDonald’s to prevent this and clean up all the trash that people throw out of their cars. To conclude: a lot of trash ends up into the environment. To name an effect of littering for McDonald’s 4

trash in particular: it can take up to 200 years for a plastic straw to fully decompose (Hugh, 2018). Besides, not only straws, but also most other products of McDonald’s contain plastic. This plastic trash will be eaten by animals by accident. Their digestive system cannot break down plastic naturally and most of the times die from eating plastic. Other effects of littering are for example water pollution and oil runoff (Irving, 2018). All of these reasons indicate that throwing away your trash on the ground after you visited the McDonald’s is a very big problem. People should be more aware of the effects of littering and there has to be created something new to change people’s habits of throwing away their garbage on the ground.

Insights from the field We visited a McDonald’s in Valencia to see how many trash is not being thrown in the designated trash cans by the customers who had a meal at the McDonald’s or picked up a meal at the McDrive. Also, we went there to brainstorm about the best solution to solve this problem. We decided to visit the McDonald’s around lunchtime so there were some people eating at that time. We first checked the area around the McDonald’s. It is located at a busy street and parking availability is limited so after people visit the McDrive, they can’t park their car there and eat their food in the car close to the McDonald’s. This reduces the trash outside of the McDonald’s since people will eat their food somewhere else after going through the McDrive. Other McDonalds’, like the McDonald’s at our homes, are most of the time located at industrial areas. Because of this, people have the possibility to get their food from the drive-in and then park their car somewhere around the McDonald’s. They then eat their food in the car and often throw their trash outside of the car window on the ground. But, since this is not the case at McDonald’s Valencia, there was not a lot of trash to be found at the McDrive area. However, behind the McDonald’s was a lot of trash. Especially in the bushes, a lot of trash of the McDonald’s was found. We also observed the people that were eating outside for a while. Some of them threw away their trash after they finished their food but lots of people just left everything on the tables and because of the wind this was blown away everywhere. Inside of the McDonald’s, some people also left trash on the tables and when the doors opened, this trash was blown away outside by the wind which was coming in. So, what we observed is that a lot of trash is not cleaned up and ends up everywhere except in the trash bins. We also asked an employee if customers leave their trash on the tables or if people also just throw their trash out of their cars. She answered that is was a real problem and that it takes a lot of time to clean everything up.

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Brainstorm for ideas for solutions We started to think on how we can provoke people to throw away their garbage in trash cans. The amount of trash that ends up on the ground has proved that the traditional trash cans are not working so we wanted to come up with something original that will work. First, we thought about making billboards with images on it with the effects of littering on the environment to let people realize the consequences of throwing away their garbage on the ground has and to stimulate them to throw away their trash in the designated trash cans, but since this is not a new product, it was not an option. Then we thought about making throwing away your trash more fun, because it is stated by the ‘Fun Theory’ that ‘if things are more fun, they are better’. The Fun Theory is a theory that has been tested with multiple experiments. For example, the experiment of the ‘Piano Stairs’. Instead of using the escalator which was next to the stairs, the musical stairs were used 66% more than normal. People had fun with making a tune (Goodvertising, n.d.). So that is why we think that with a fun alternative for the traditional trash cans, people are more intended to neatly throw away their trash. The first idea we came up with was to have two trash cans and put them next to each other. Then above the two trash cans put a dilemma so that each of the trash cans stands for a choice people have to make. For example: “Who is the best player in the world?”, and then throw away your garbage in the left trash can for ‘Messi’ and in the right trash can for ‘Ronaldo’. We also thought it would be nice for people to see which option is doing the best so to make the trash cans clear in the middle. In that way people could see which player has the highest score. This makes it fun since people want their best player to have the highest score, so they are willing to throw away their trash in the trash cans. For the second idea we came up with creating some trash cans with bright colours and happy McDonald’s images on them, so they would really stand out. In that way, they are more outstanding than the rest of the normal trash cans and people are more attracted to them and more intended to throw away their trash in it. The third idea we came up with was to create trash cans that will make sounds when you throw something away in it. These sounds can vary but we thought of a lot of different things like make it say ‘thank you’. With this idea the fun part will be that people will be surprised when they throw away their trash. Other people will see and hear this too and then want to try it out themselves to see what is going on. We thought of a trash can in the form of one of the famous McDonald’s figure because then it would really stand out.

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Criteria for the best idea The best idea has to meet up with a few criteria to be chosen. First of all, it has to fit with the brand image of McDonald’s. The company is a company that is mainly focused on families with young kids and the restaurants are filled with bright colours and most of the time there is an outstanding playground for the children present on the property. So, the best idea has to be a happy one, since this is something McDonald’s stands for. Second, the new trash can has to stand out from the traditional trash cans since those have showed not to work properly. People just do not see them anymore and most of them therefore do not throw away their garbage in it. Third, as we said before, the idea has to include a fun part since then people are more intended to do things they before did not do. Fourth, since our goal is to eliminate trash, the new trash can needs to be functional. It has to be new, but it still needs to collect trash in a convenient and effective way. For the customers this means that it should be easy to throw away their trash in and for the McDonald’s it means that it should be easy to empty the trash cans.

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Concept & testing The best idea For the final concept we have selected criteria that are important for our project. These criteria are: - It needs to fit with the brand image of McDonald’s. - It needs to be different from the current ones because they don’t work. - They final concept needs to be funny. - It needs to be efficient. We have in total three ideas and in the graph below you can see our three ideas in relation with our criteria. Brand image

Different

Funny

Efficiënt

Dilemma idea Bright color trash cans Sound trash cans The first idea of the dilemma idea meets actually all the criteria. It doesn’t harm the brand image of the children friendly organisation. It is even possible to come up with dilemmas for children and see how they react. The second criteria is also achieved with in this concept. The idea of how you throw away your trash is a totally different experience. The third one is maybe the best criteria for this idea. The idea is very funny for both children and adults. How cool would it be if children are collecting trash to vote for their favourite movie, for example? The last criteria is about efficiency. For this idea the trash cans are almost the same, only the way of getting people's attention is different. That makes it that also the last criteria meets this idea. The second idea meets almost all the criteria. The first criteria that the idea has to fit in the brand image of the McDonald’s is met. Trash cans in rare shapes or with different bright colours are perfect for the brand image because McDonald’s is mostly focused on families with kids and bringing happiness. Colourful things brighten the atmosphere up. The colourful trash cans are different than the ones they have known. So, it meets the second criteria. This idea only does not meet the third criteria about that it needs to be funny. Having colourful trash cans does not make the process of throwing away your trash funnier. The last criteria, about that the trash can needs to be efficient is met with this idea. The colours changes nothing for the trash cans and their efficiency. The last idea also meets all the criteria. The idea of playing a sound is in line with the brand image of the McDonald’s. It can create a rewarding and happy feeling if the trash can for example says ‘thank you’. Regarding to other researches it improves the usability of the product (Goodvertising, n.d.). The second criteria is also met since it is a very different product in comparison with a traditional 8

trash can because it speaks to you. No traditional trash can is doing this and this makes it different. It will also come in a new shape, like a McDonald’s figure which makes it also stand out. The third criteria is the one which suits this concept the most. The sound makes it way funnier to throw away your food waste, so people will be more intended to do this. For the last criteria the efficiency is the same. If you add the sound to the trash cans. The way of how you can empty them remains the same. But also, if we create some with a McDonald’s figure, we can create it in that way that it is still efficient to empty and to throw away your trash in.

Testing So, to conclude from the previous section where we checked which ideas meet up with our criteria, two of them are left. The idea with the trash can with a dilemma and the other idea where a trash can would be developed which talks. We created a survey to find out if people actually thought if the concept of making the process of throwing away your trash more fun and if so, which of these two ideas they preferred, we created a survey to get in touch with our target audience: the customers of the McDonald’s and especially the ones who do not throw away their trash in the designated trash cans. With the results we could see if our fun concept will work and which of the two ideas will work the best, so we could decide our final concept for the product. The whole survey can be found in the appendixes. We first wanted to know the basics of the participants like how old they are and how often they visit McDonald’s. Next, we wanted to test on their behaviour of trash disposal. We then divided the participants into two groups, the ones who intended to always throw their trash away appropriately and the other ones who don’t. From the ones that do, we still wanted to know, if they think our idea would help to reduce the trash on the ground and engage people to throw away their trash correctly. This because we think they should have an opinion too on the new alternative. Since we already took out the coloured trash can idea based on our criteria for the best idea, we provided the other two alternatives and asked them what they would think what worked best. The other group that does not always throw away their trash in the designated trash cans, which would be our main target group, we asked what the reason for their behaviour is to already get an idea of the problem, so we can think about how to fight it. Then we asked them if they were more likely to do it when throwing away your trash in a correct way was made “more fun”. We then also provided them the two alternatives to choose from, what they would rather like and think would work. We had 36 participants for our survey. Because we mostly sent it to friends, the age variety wasn’t that big, but still enough for our need. Also, all of them visit the McDonald’s, but in different frequencies. The majority of our participants always throws their thrash appropriately, but still 36,1% don’t. Th us that there is definitely a need for our project to the process of correctly dispose your trash. The re

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them to not throw away their trash correctly were really different though. The only thing we could find out was that it’s never because there are not enough trash cans on the property, which supported our assumption. Only providing more bins therefore wouldn’t solve the problem. Interesting was that 84,6% of them would be more likely to throw away their trash, if the process was more fun. The rest of them answered maybe so no one thinks the it will not work for sure. This shows us that the fun concept will work. Also, in the group who do throw away their trash correctly, everyone thought people would be more intended if the process would be made more fun (65,2% yes, 34,8% maybe). We finally provided both groups the two ideas we had. Alternative 1 was “Create two trash cans next to each other and put a dilemma on a board above the trash cans. Each of the trash cans will stand for an option of the dilemma and people can vote by putting their trash in the trash can with the option they prefer. Both of the trash cans will have a clear see-through stroke in the middle, so people can see which option has the higher score. For example: “Who is the best player in the world?”, and then throw away your garbage in the left trash can for ‘Messi’...