Bachelor thesis - Loblaws365 by iamkama

Kama Kaczmarczyk META PROJECT

Undergraduate Thesis Industrial Design OCAD University

Prof. Alexander Manu September 2015- April 2016

iamkama.com 1

TABLE OF CONTENTS 4

PREFACE

QUESTION

THINKSHOP

MAKE-DO

HORIZON

108

TOOLS

122

FUTURE

126

AFTERWORD

PREFACE

ABSTRACT

PREFACE

THE VALUE OF UNLEARNING IN THE SUBSCRIPTION ECONOMY Nowadays, people’s expectations are growing, which puts pressure on businesses. The core of society shifts from multiculture to polyculture. As everyone is involved in this process, everyone is also engaging in a transformation. If consumers can unlearn resources and create new values, why can’t brands do the same? Many big corporations are standing on the brink of failure. They need to become active and stand out in the crowd to succeed, since the old norms are no longer applicable. It needs an impulsive chase for fulfilling desires and improvement. This is the moment of taking action and resetting knowledge through innovation. By redirecting the focus from presence to future experience, from imagination to innovation, from quantity to quality, we can step into the age of a new economy as it serves a higher purpose, where companies become the tricksters in the field: the mediums into possibility. Rising awareness of technological changes and systems’ issues causes many to seek out new opportunities, that reimagine current situations, and implement strategy that can design the future. Alongside the increasing demands, comes disruptive obsolescence, caused by the growing number of mediums to cater for needs in the realm of a digital minefield. It creates a system dichotomy; drawing a line between the new and the old. Meanwhile, a lot of companies are starting from scratch in this era of new age learning, opening people’s eyes to the power of knowledge and the future. They see the opportunity of serving a higher purpose. The project aims to cognitively align this chaotic and archaic matrix of relationships between machines, businesses, and people, to celebrate the potential of creativity. It will be a generational therapy. The project is an open dialogue as an opportunity for formation of new services by reinventing tradition. It gives incumbent organizations a chance to remain valuable by offering a new lifestyle through new layers of convenience and personalization: a seamless transition from the age of digital age to the age of intelligence.

PREFACE

Some stories stay with you. Some stories create you. Some stories shape your presence. Some stories change history. This is a story about an isolated floating island that transforms into a solid land when farmed properly. The momentum in which we are living and managing our daily living is being shaped on a massive scale by innovations and compelling experiences. It is now reaching its critical mass with the influx of those technology-powered aggregators, and causes the constant state of entropy. Taking on this opportunity, the project stepped into a quest to shape an opportunity to regulate this state within a chosen area, and work around the foundations set by our mind that are vulnerable. The experience I sought to pursue through design was to trace back all the signals that can trigger a big change, and that can explicitly start a ripple effect leading to new regulations and rules. The system powering the concept and the reasoning behind was carefully investigated and formed into a paradigm of unlearning. My concept of unlearning turned into a pinnacle of the vision uncovering an enormous gap centered on us, humans. As we are so bound to the entropy and susceptible to current changes, we yet have so much to learn within the realm of seeing the holistic and raw information. Being constantly fed by media, we are missing on the opportunity to focus on ourselves and become tricksters - medium to possibility. 8

PREFACE

The shape of unlearning is hindered in current societal norms and forms. The realms of selfcapabilities are illusory. The project aims to challenge this notion and scratch all misleading actions and procedures step by step to form a new generation. Relying vastly on the power of networks and unveiling the latency, this is an attempt to appropriate and allocate new means of distribution. Meanwhile within the dimension of future growth pursue stimulation of a new community.

and mainly food as a starting point, to design the new life curriculum. To provide real and easy to implement solution, I am redirecting the focus behind the food system, to start the culture shift. The projectâ&#x20AC;&#x2122;s impact stands as a pivot, to trigger a holistic new way of living on a massive scale, bringing enormous savings for the planet. Personal belief in the power of nutrition, dictated my approach to the subject to consider every part for the advancement and positive change. This project explores how a company can educate peopleâ&#x20AC;&#x2122;s latency and grow new, future-oriented and conscious consumer. Bringing a new behavioural platform, it follows the concept of lifestyle:subscribed (as defined in the previous report) and reorganizes distribution and food system, and relationship between manufacturers, retailers, and endusers.

Alongside the growth of a new classic, comes the need to fulfill the arising needs on various levels. The confrontation of the technology and individuality sphere is drawing a new line and trend of fetishism. To flourish a certain territory with empowerment through change, the system needs a bigger, broader, and deeper approach. My project collects the entire notion presented above and opens a new gateway for transformation on a glocal scale. By opening a dialogue with environment, individuals, and retail among the main stakeholders, I am attempting to build a strong foundation to allow efficient and comprehensive growth. Research disclosed peopleâ&#x20AC;&#x2122;s reliance on food is colossal, and that apart from the minor advancements, the whole system is in stagnation mode. This discourse pinpointed my attention to retail, e-commerce,

Loblaws365, being the final and utmost outcome of the concept, is where all premises, analyses, and scenarios get collected, outlined, and implemented for a unique value proposition. I am giving you a book that is a learning curve of how play turns into a new ecology.

QUESTION

what if unlearning was a lifetime curriculum?

QUESTION

At the outset of the project, I wanted to emphasize the relationship between the being, doing, having, interacting, and identifying. I wanted to achieve an exemplary model of new behaviour and outset a new platform for a collective future generation. The preliminary research in this project resulted in the final framework creation based on unlearning. The presumed outcome would lead towards mastery and becoming a trickster - a medium into possibility. What if unlearning was a lifetime curriculum? The key takeaway from that stage was this question around which my final execution of the project was approached. It led me to design tools, properties, logistics system and properties, acknowledging forms of resources for future communities. Moving forward with that possibility, I am giving a new framework for food distribution system, under the name of Loblaws365. The following chapters explore the basics of the concept and large scenario, the roadmap leading towards the final choices, and paradigms extracted from the conceptual stage.

THINKSHOP 16

PARADIGMS

ENGINES OF CHANGE

OPPORTUNITIES

PROPOSAL

PARADIGMS

PARADIGMS As the concept needs to be grounded, the following are the paradigms, thought experiments and more, connecting the theoretical functionality with the tangible and practical outcomes and forms. These discovered briefs are used as tools and narratives to quantify and qualify the purpose of the project and stakeholders within. The application of these frameworks and concept databases, allowed to influence the relationship of the ideological balance, contributing to the reduction of conflict around fundamental issues on a global scale. To avoid careless settlements and minimal value, the developed shifts described below had the main goal: to stimulate proliferation of symbiotic life and new comfort linked with environment. The effort was to allow maximization of the concept within the current processes and culture.

PARADIGMS

the second life One of the possible searches within the unlearning sphere is the division between the virtual and physical. Digital humanism becomes more enabled each year with growing tech field. Fulfilling intrinsic motivations stands at the core of those inventions. Our capabilities get extended and we express ourselves through social means. The paradigm of second life takes all these aspects into consideration. The second life is technology powered, network resonating, intrinsically motivated, and digitally exposed. We are tailoring our new presence and culture within the common known cloud. Social networks give us the ability to make settlements that adapt both the collective and the individual. Within the unlearning dilemma the second life correlates to altered means of fulfilling human needs of recognition and lifestyle. The structure involves adaptation of upcoming wants from younger generations, but it also means ubiquitous ways of streamlining user engagement on the experience levels. Digital era is an enabler of mediums for polyculture we are raising.

currencies of needs As societies are transforming and trends emerge, new destinations of brewing excitement approach and expand needs. Occurring shifts are usually ephemeral and create the sense of serendipity. To fulfill the accumulative forces of these nuances, new intangible currencies emerge. They lead to new economy in the digital age, based on the behavioural and quantifiable data. Employees and consumers expect companies to be powered by a digital core â&#x20AC;&#x201C; bringing greater efficiency, speed, and more-intuitive ways of working. (digitalistmag.com) In addition to that, it is a massive push towards accomplishing the stimuli of safety and security. The era of mobility expands the access to convenience on-the-go and comfort. People are seeking for the tools, experiences, and values, which are unique and enhance the intrinsic satisfactions. Feeling valued, individually curated stories, narratives that are personal, tailored-for-me commodities; all of these augment the currencies of needs and deepen the minefield of those. With understanding the target group, it offers powerful innovation opportunities. 17

PARADIGMS

efficient vs effective Driven by the democratization of technologies, tools, platforms, the current consumer is looking for a perfect fit within. A fundamental part of this vision has to do with the ability to access the global, but have the local relevance. The demanding and ongoing commitment a user claims with a purchase, or use of the service, is dictated and guided by many factors. Among those one seeks to fulfill personal goals, aims, capabilities, norms, lifestyles, networks, being in charge, and many more. In response, the paradigm of priority is plotted which has to do with complexity of efficiency versus effectiveness. Constructed by the levels variables (users, environment) and information acquisition (logistics, software), the alignment of values should be accommodated to guide these priorities. Once established and reflected, the organization builds on the capabilities, competencies and resources. A betterment at the core, both for the organization and customer, can kickstart the generation of revenue. Having efficient fleet and effective tools and system, increases the level of commitment user draws towards the purchased or implemented subjects.

dichotomy Todayâ&#x20AC;&#x2122;s consumers move seamlessly back and forth between digital and traditional channels. For instance, one can be a store while browsing same or similar products on his smartphone. New business models are rapidly proliferating and will continue to evolve. (Boston Consulting Group) Meanwhile, shoppers are moving on from the brick-and-mortar stores (furtherly discussed in the resources unit). The dichotomy between the convenience on the spot and convenience obtained is growing along with the digitalization of experiences. It would be safe to say that the main areas seeing this tendency are education (tablet, computers and MOOC opposed to the school systems), retail (e-commerce/ delivery of goods vs brick-and-mortar), and social industries (social media range). The post-demographic era, as written in the Trend-driven Innovation book, is very fluid with the chaotic modes and patterns of consumption. Traditional ideas are complying to the modern liberated ways of accommodating accomplishment. Successful bridge will fertilize these complex poly- and cross- cultural and societal targets. Data-driven contexts are the key for maintaining relevancy and conscious fulfillment of taste and interest. 18

PARADIGMS

unlearning One of the engines of change that I am mainly focusing on, which was derived and defined in the first stage of the project realization, is unlearning. Already mentioned concept was defined as having a (...)function (...) to transform the state of being. (Meta Report 1, Kaczmarczyk) In other words the behavioural extinction being the process of approaching a prejudiced individual, and through micro moments creating a state of fragmentation, leading to an alignment formed from new values. It is a growth that is beneath the horizon but lies within one. Unlearning is a condition that is important in a diverse and various realms of living, such as transportation, education, retail, business and more. The projectâ&#x20AC;&#x2122;s timeline didnâ&#x20AC;&#x2122;t allow me to further explore all of these, it needed a selected focus on one, which will be explained in the upcoming units. The methodology for executing unlearning in my proposal included defining norms and concepts driving the settlement for new service and thus behaviours.

PARADIGMS

INDUCING FALLACY

product that facilitates new bahaviourability, a service that enables connectivity, collecting, and activation. It’s an omnichannel symbiosis plotted with its’ user’s motivations. In that sense, both consumers and companies need to unlearn their presumptions of tool economy. One needs to rethink the system shift from granular to societal as the post-demographic technology culture nurtures the generations as a whole. Within those, personalized stories can be curated and narratives supported.

Posing a challenge by prompting fluid perception states to obtain the ability to shift lifestyles. Re-looking at current motivations and drivers, a brand can apply those changes and induce fallacy for a successful relationship. The point being, that a brand shouldn’t be showcased and advertised just as a brand, for what it has been since its’ launch . It is more about the experience and making people change their understanding of services that are curated by a company. Not behaving as expected, raising new opportunities that are not obvious, changing directions for new target groups: such initiatives are risky, but they also stimulate and develop motion in the user base and their behaviours. A change for a good change; unlearning to innovate.

FLUIDITY - SHIFT FROM TRADITION TO INNOVATION Unlearning takes on the notion of stepping into the new and now. The manifestation of that could be found in the shift from traditional systems to innovative ones. Possessing a genuine awareness of the consumer realm and abundance of self-actualization norms to embody and outset unique and modern transformation. As a big company undertaking those shifts, the continuous improvement and allowing user generated lifecycle and relationship with the company itself, is part of the fluid unlearning. Experiences of today’s individuals are linked tightly with the identity. Their consumption on a great number of levels is a clear manifestation of self-improvement and readiness for change of ideals. If one can master many outlets for self-actualization and quantifiability, he is also ready for master only a few that have base set as the quest for better future.

RETHINKING GRANULARSOCIETAL SYSTEMS One of the arising impacts of induced fallacy is a shift within a society. It is challenging the growth as it used to be and promotes a more fluid transition in the behaviour economy. People are escaping the archaic and outdated patterns. As before it used to be all about the execution, exemplification, tangibility, and physicality is now becoming all about experience, feeling, not-monetary value. This context kickstarted the discussion and pursuit of switching to thinking of a company’s tool to be a service rather than a product. For instance, iPhone may be a smartphone, but people will care more about it as an Apple’s 21

PARADIGMS

all-you-can-eat shopping

MATRICES AS MULTIPLE APPLICATION OPPORTUNITY

Along with the new means of obtaining content or commodities, a new consumer culture has been established: all-you-can-buy. People are hungry to get more for less. Such trends as fast-fashion and buy one get one are definitely here to stay. However, an efficient facilitation of resources to offer better value, while improving the ultimate self, can become a tool utilizing new lifestyle. Unlearning in this dimensions is not about improving experiences with technology, but rather how these, designed around humane principles, can improve an individual. Best experience should mean my experience but having a positive value for all. A betterment-oriented engagement will lead to significant transformation of all-you-canbuyers into all-we-should-havers.

Unlearning as a very broad concept can and should include many areas of living. A few already mentioned, such as retail, transport, lifestyle, are just the pinnacle of the iceberg that withholds scattered and unregulated areas of behaviour economies. Plotting the pathways to a beneficial transformations is a lengthy process. It is possible to outline them all and starts designing the outmost scenarios. That could be worked around A. Maslowâ&#x20AC;&#x2122;s framework for six dimension of human needs opposed to the categories in need of development. Yet, the timeline dictates the possibilities hence my decision to move forward with the retail, and specifically food industry. This pendulum, expanding from centralization to distribution, is very slowly getting customized to fit within current environment, user base, technology and more. Challenging that model can build a complete new ethos around the themes of unlearning and platformable behaviours and lifestyles. 22

PARADIGMS

global village economy This modular community and consumption model stems from circular economy. It opens a huge opportunity across complex global supply chains. If manufacturers and companies implement itsâ&#x20AC;&#x2122; requirements and objectives, they could reverse the life cycle of products and foster new generation of co-active users -global village economy. Unlearning hypothesis plays a key role in shaping that ideology, and as described earlier, it drives innovation and thus development and acceleration. With this particular case, it is crucial that the thought leaders around the globe catalyze their capabilities through the unlearning initiative to reconceive key materials flows and manufacturing processes. A large-scale, business and industry led collaboration is needed to trigger those changes and disrupt the economy. The myriad of benefits from the redesign of logistics, distribution and manufacturing processes, includes structures such as the shift of the global job gap, material usage, and urbanization. (World Economic Forum) Global village economy is a disruptive force of a new perspective for consumption and new value standards.

PARADIGMS

CIrCULAR ECONOMY CASE STUDY Optimization of this situation can be facilitated by the implementation of circular economy where it’s both on micro- and macroeconomic level. Stemming from the eco approach, this closed-loop economy explores the opportunity of innovating from the supply chain to societal behaviours. It is challenging as it requires systems-level redesign and a pressing need for new skills, not just within the STEM (Science, Technology, Engineering, Maths) subjects, but across the creative disciplines of design, advertising and digital. (theguardian.co.uk) Disrupting linear economy, the circular economy not only does take into account emerging technologies, but also embraces them to facilitate the transformation of market agenda. As predicted, packaging will advance to provide consumers with a way to both send data to and receive information from producers and distributors. New tagging and tracking technologies could enable manufacturers and retailers, to aggregate what is currently perceived as low-value packaging waste, in more economically-appealing volumes. (ShapingTomorrow) At the same time, this model could trigger a large innovation drive across sectors of the economy because of the need to redesign materials, products, or packaging for circular use. (ShapingTomorrow)

The current consumption model revolves around commodities and the idea of having. It has been thriving for ages. People want to acquire and get more things and this is how they estimate someone’s value. Retail is shaping our living and our contribution to it shapes the economy. For years the economic growth has been maintained, and now, as technology is impeding every aspect of human condition, it is quantifiable on many dimensions and levels. Design plays significant role in maintaining this state. With its’ advancement, today’s economy can transform for a better future fit. Current lifespan of products is based on the resources, users, maintenance and lifespan. Today’s typical consumer, however, is user to having high-performance and high-quality things. Being concerned more about the performance than the lifecycle and consumption part, has led to linear economy boom, where products are used only for a short matter of time and then they are discarded. Recent studies by World Economic Forum shown, that it is leading us towards shortage of planet’s resources and crisis. That strategy has brought perturbed the balance between the techno- and eco-sphere. Looking for an equilibrium state has been quest in recent research programs. 25

ENGINES OF CHANGE

ENGINES OF CHANGE Design has been slowly evolving when it comes to catering for transient satisfactions of immediately responsive nodes of needs and wants, dependent on ever-accelerated consumption of energy and objects. (Alexander Manu in â&#x20AC;&#x2DC;Awakeningsâ&#x20AC;&#x2122;) Scanning the market, economy, societies, cultures, businesses, it became apparent that the influx of information in the post-global world holds the key to transforming the current system. As a counterforce to hasty marketing machines speeding up the process of de-personalization and dis-connectedness, creating more borders and isolations instead of building a holistic vision, the facilitation of unified and dazzling acceleration of alternative models has the ability to transform a place into a new epitome of conscious and networked living. It is a strategy to make the economy more effective and personalized, keeping the classic sense of ethics in the era of progress. Looking to design a tool or system for change, combining motivation and invention to accelerate the growth, the responses for stimulants and drivers need to be defined and regulated. One can only drive the change if the whole system is redesigned.

ENGINES OF CHANGE

principles resources community human

Engines of change, or discovery, is the process of conceptualizing the possibilities, experiences, and curated stories. I started clustering certain information into groups of the probable, possible and preferable. This segregation accommodated and pinned down the scenarios that could be facilitated in the near or far future. It also shaped the viability of the feasible potentials with an instant networkability for growth. For this process I used the framework tools-shells-networkssettlements and reiterated to fit for my project into human (granular level)- community (societal) - resources (material) - principles (methodical). I am furtherly discussing two concepts and conditions encompassing them all : unlearning and global village/modular economy (which stems from subscription services).

ENGINES OF CHANGE

the return of a milkman with a digital twist

Business models turn into digital business models as brick-and-mortar stores accelerate the growth of their mobile and virtual presence. In the grocery sector, more and more This digital-driven world is being shaped by both consumers are locking into online subscription services, such as Amazon Subscribe & Save, companies and end-users. The first focuses for regularly purchased items. (Amazonâ&#x20AC;&#x2122;s on the second, while making value the highest estimated share of the online grocery market target and goal. Facilitating convenience and rose from 24% in 2012 to 29% in 2014.) (BCG. comfort is in demand as the race for bigger Perspectives) user group is stimulated. Digital channels have It can be observed how todayâ&#x20AC;&#x2122;s clientele opened up a plethora of new options that consumers have enthusiastically exploredâ&#x20AC;&#x201D;and is tapping into e-commerce models with homedelivery or click-and-collect options (furtherly embraced. The retail proportion (including e-commerce) to other segments of digital world discussed in the resources unit). Retail and online stores with these services in their is indicating what is of the highest importance portfolio are gaining attention and demand. As for clients. Some experts are predicting that Boston Consulting Group predicts, the clicke-commerce will surpass $2 trillion in the next few years, making it the fastest growing and one and-collect models have the highest potential and have the most disruptive power. The of the most valuable industries. (trueship.com) Both boomers and seniors have adopted mobile delivery of goods service, including consumer packaged goods (CPGs), is a digitallycommerce. stimulated homage to the old-fashioned Companies are responding to those milkman fresh delivery. shifts and leverage technology and their business models for competitive advantage. 28

ENGINES OF CHANGE

MODULARITY With the digital overflow of filters and detailed profiles, it is now easy to get self-tailored services and gain personalized experiences. The networkability is increasing with emerging drivers of change, such as need for connectivity or constant influx of information, stimulating the global collective village. Curated lifestyles are now becoming a common and expected essentials for individuals. Being able to have customized experience or service is the crux for a modern consumer to build a strong relationship with a brand. Recognizing its’ users, it is a pure and fundamental strategy. As the categories of goods are expanding, more versatility and diversity is obtained and can be facilitated. With that opportunity, companies can grow their capabilities and methods to target more consumer and offer better values. The concept of modular economy comes into play within that spectrum. Driven by the users and led by technology, it is anchored in the archetype of having freedom of choice. Modular economy opens up many doors to services, brands, managements, strategies, softwares, since it is tied to the individual only and curates the narrative for one. Reinforcing the bond with the client, the possibility is to relatively allocate only the resources that are needed. Modular economy stands for networkability, now mainly stimulated by social media, but moving more into the sharing economy sphere. It’s a competitive set of savings in terms of waste and unused assets as the lifestyle are curated and managed. Within this environment new internal and external links will be created and properties, as possessions, can be changed, transformed, and relocated. The future is driven by a strong desire for people to 29

have control over their lifestyle and acquire the commodities to fit within. (Thomas Frey for Da Vinci Institute) Hence the reason for modularity.

BULK delivery The population’s growth is now highly apparent and mainly discussed in terms of eco-sphere. As the numbers are growing, the needs and resources demand do as well. Getting a me-only service and treatment may be convenient, but not necessarily beneficial in terms of everyone’s good. And while technology and creativity behind it allows us to feel empowered and hold liability, yet we are never satisfied, hungry for more self-centered consumers. With the global village’s modular economy system, it is possible to implement individual request along with the economy improvement. Within the retail area, it can be easily accommodated and make significant increase in the system performance. Today we can be in motion and we can put things in motion too. Taking advantage of that abstract in literal and analogous way, things can change their place and always bring satisfaction for whoever end-user is. Traditional CPG companies must determine how to strategically obtain their standards and meet clients’ needs. Key concept behind the advantage of this system is to have as many services and possessions carried as possible for multiple personas. Facilitating many within one is specifying a system of bulk delivery of goods driven by algorithms and strategies. The multidimensional net of delivery branch is everready for implementation of this service. Partly trained by sharing economy, global village can take a next step and appropriate a new agenda regulating the daily living and lifestyles for glocal effect.

ENGINES OF CHANGE

resources Currently existing services and technologies allow facilitating and developing new systems. Implementation of the previously described concepts, consumption models and economy, can be achieved if using these proper resources, such as on demand services or locker systems. This unit discusses them as the possible drivers to be implemented in the final solution and outcome of the project. If used properly they can accumulate positive change and deliver huge rewards for business, individuals, and planet. Making a switch to the listed resources is an initiative aspiring to open up opportunities to a myriad of profits for companies and therefore all of us.

ENGINES OF CHANGE

CPGs

locations. CPG players stepping into that realm will be able to build a position difficult to dislodge. The biggest opportunity though stands for regulation and control of this system as a whole.

Today’s consumer packaged goods (CPG) companies are facing a winner-take-all world in which about half the sales growth—more in certain categories and markets—is coming from digital channels (from a report by Boston Consulting Group and Grocery Manufactures Association). Since digitization becomes implemented in every aspect of our living, it is imperative for the companies to step into that market to avoid risk of stagnation and share loss. New approaches to digital sales open new categories for curating the models for each customer. Many CPG companies are not advanced to fit for today’s techno-sphere and still rely on old strategies. Missing this opportunity increases the gap between what the speed of growth in the digital commerce and traditional retail and distribution. Essentially, the key to stay competitive on the marketing levels means being able to see this problem as new generations are adapting new patterns of living and behaviours. Successfully-led companies will have to unlearn their outdated models and rethink and redesign everything from the core. As consumers heavily rely on consumer packaged goods, buying them in massive amount every day, the opportunity to be facilitated has to do with the circular economy, for the reduction of waste, as well as bulk delivery, aiding the distribution. Tailored purchases shaped by digital buying behaviours can form the development in terms of branding, packaging, distribution; which doesn’t mean those would become more apparent. Rather than that, branding and packaging can be minimized while distribution system maximized for optimizing the sales and to customer’s

dabbawala case study Living in a certain area brings awareness only to the familiar and nearby resources. It is difficult and takes effort to know more and be aware of different cultures. For instance, most of Western cultures have no idea about the Indian system of lunch delivery in India. Dabbawala, which I am referring to, is an astounding service with transporting more than 130,000 lunchboxes every working day throughout Mumbai (hbr.com) This modular system is an old and yet perfectly thriving business in the country. The performance is achieved through an ecofriendly management and low-cost associated with it. Essentially, it is a delivery service of lunch boxes from home to offices, performed daily by a number of employees. The whole system of logistics, customer acquisition or conflict resolution is managed without any use of digital support. The biggest success of it is that the margin of misdelivered boxes or missing one is close to zero. Seeing the similarity between dabbawalas and modular economy, there is a possibility to expand it and take advantage of technology to fit within the retail industry (in general) in Western countries. Having a homogenous solution and same mission across retail players, stimulation of global village economy can be achieved and development of policies and regulations accelerated. 31

ENGINES OF CHANGE

PICK UP SPOTs

A major development in the retail industry in the recent years was the growth of e-commerce and itsâ&#x20AC;&#x2122; branches and services. The emergence of such initiatives as click-andcollect or on-demand delivery is one of those. Now expanding into different mediums and means of facilitation, they are establishing new relationships between business and clients and driving positive impact on the eco-sphere. This advancement is fastly spreading across the globe. Many start-ups are establishing their market position based on values of convenience and customization, the core components with the delivery model. For instance, a UK start-up UseYourLocal enables the British to get their package delivered at the spot they spend most of their time-the pub. (popupcity.net) Another one, Instacart, a third-party service for grocery home delivery in the US, only in 2014 was valued at $2 Billion. (businessinsider.com) The emergence of such services is perfectly aligned with current consumer needs and helps with the maintenance of their daily living while bringing comfort to the door. Fast-paced cultures and cities are anticipating that transformation as they cultivate and shape new lifestyles.

Quite recent expansion of automated locker systems is another way for a pick-up of purchased goods (retail merchandise in most cases). Such company as InPost, launched in 2006, is now growing their business with its technology on a global scale. Allowing the users to use their machines as simple to use as ATM (it takes as little as 7 seconds), it promises never having to wait for a courier or in a line-up again. (InPost Youtube channel) Rolling out the value of convenience got a new resource with that advancement. A nation-wide network of retail store locations has the opportunity to step into that segment and bring new value into itsâ&#x20AC;&#x2122; business model. Organizing the spatial networks of neighbourhoods can distribute the assets while promoting positive changes on a larger scale. With the acquisition of the discussed model, economy can progress and bring balance in the realm of technology-dependant versus ecologic way of living. Alternative models for modern users are on a quest to achieve a newly effective economy and society. 32

ENGINES OF CHANGE

Mobile meets brick-and-mortar Changing motivation of humans toward the reality of truly emotional and meaningful concepts is now done via digital devices. Although the highly-rate of reliance on mobile devices is in a steady growth, the physical presence in the retail sphere is still very viable and creates customer experiences. The challenge undertaken in the todayâ&#x20AC;&#x2122;s world is to be able to bridge the gap between the two and offer curated real-time narratives and stories that achieve satisfaction and bringing of comfort. In this resource sphere, the technology is the owner and brick-and-mortar stores are the assets. Within this spectrum, it is the key to drive the change and transform the industry for the future. Creating new markets for this change, needs the essential of unlearning to become viable. The modularity and a self-tailored service opens a new window to offer a scope of viability across a wide spectrum. The mobile sphere

establishes new ways for retrieving the experience given by a certain business, and outlines a possibility for parallel with physical store services. The resources discussed here optimize platformability of value offer by a certain company. Leveraging on this opportunity can shift the focus from having to feeling, as the physical presence of the objects can be removed and only signaled through digital forms for a delivery within a preferred time-frame. This therefore can release a positive overall reaction and matter, hence the category of feeling . It is now desirable for brick-and-mortar stores to reposition themselves with new mediums and stimuli. Thus, creating a link with CPG companies, and driving the circular economy model. Mobile solutions with destinations movable in terms of space and time can be easily facilitated and remove the influx of movement created by people. 33

ENGINES OF CHANGE

direction The presented and described concepts, models and assets, are signals and aggregators of the shift happening in the economy and generations and their behaviours. My key takeaway is to facilitate the fluid mentality driven by unlearning, invert the economy model to raise global village modularity, and aid the distribution of assets within the new spectrum and emerging diversity of currencies of needs. This project will not be about new objects, but rather a newly responsible social order. By choosing retail and e-commerce industry, the initiative is to have those fields regulated and redesigned. It is the intervention to help shape the new classic and optimized model of living and aid with the shift of consumption model to redesign the systems. The essential outcome being a holistic approach to growing environmental issues caused by societies; for instance, the climate change exceeding intense concerns. Dealing with it may require a combination of technological innovation and changes in peopleâ&#x20AC;&#x2122;s lifestyles. (pewglobal.org) As a global village, we are responsible for the prosperity of our homeland. This project takes it into consideration using unlearning for new logistics direction.

OPPORTUNITIES

opportunities This project does not facilitate a global novum and system with de-deployment of current structures and their principles. Instead, it suggests a way to capitalize on the power of technology, human needs that should be fulfilled on a deeper level, and ability to transform for a new, powerful and system-powered generation with an optimized lifestyle. Forming communities from individuals, the goal here is to drive the functionality, evolution through revolution, and mirrored personal lives replaced with new experiences stimulating growth and positive changes. By providing a new form of delivery of curated nodes of identity, the development of new holistic cities is encouraged and accelerated. Through transparent approach and evident attempt for networked culture , it is diminishing the dishonest relationships between brands and consumers, while providing for individuals for freedom of choice and comfort. Supplementing the individuals with new world vision and the intrinsic, intangible value, the opportunity opens up not yet existing ethos, which is parallel and latent in itsâ&#x20AC;&#x2122; form.

OPPORTUNITIES

The discovery of the concept was based on the formalized triad terminology of redesign, resymbolize , and regenerate, developed by Alexander Manu. This filter for information is standing as an autonomous pillar of objectives to be reflected in my proposal. As we, designers, can stimulate change, we also have the accountability and responsibility, to make sure it generates and nurtures fruitful outcome from the existential, experiential, and viable foresight roots. Shifting the social balance in the new direction, the concept reiterates current value chain of delivering necessities and implements new practices for the one and the many. The redesigned society goes through a stage of unlearning without an apparent knowledge and awareness of the process, leading it to a regenerated balanced sphere promoting conflict resolutions in the most feasible way.

Because the proposal features catering for a several layers of being and is centralized around inlets and outlets of daily living, a framework was developed to segregate the final directions and properties to deliver upon. It is becoming more apparent that current populations are growing into the emerging technologies and implementation of those into their lifestyle. At the same time, the rapid product development in the tech bubble goes one step ahead, with a new industrial revolution formed by the age of the Internet of Things. (AIG.com) That influences an influx of mass connectivity, empowered identities, and activated, self-aware commodities. In this context, my proposal is initiated with a ritual, an implementation of the digitized personas and quantified self. Using platformability as a medium, it cultivates and establishes a fluid manner of cross-digital and physical responsiveness, and readiness to perform. The next branch takes on the medium and

currency of value itself, the connection, for further exploration and analysis. Reiterating the behaviour for harmonious but flexible community, the connection allows an evolution for the environmental consonance. At this stance, the concept and aggregate of difference emerged. The hope is to scratch past ballasts of archaic economic thinking with itsâ&#x20AC;&#x2122; failures to adapt, leaving a new footprint and driving the beneficiary change. The main objective of the application of this new ecology of existential balance, is to provide for a sustainable offsets into the future, culminating in a stream of ephemeral tangible destinations. Inversion and dematerialization of current matter is at stake when it comes to stimulating and activating these needed and congruent, universal resolutions. All the four stimulants are impacting the assets, a currencies and properties used for adaptation within the consumption model.

OPPORTUNITIES

WHAT WHY WHO

RITUAL

CONNECTION

DIFFERENCE

EPHEMERAL

ASSETS

Describing each node is done by the filter of ‘three W’s’ : what, why and who. Attaining that framework model can be reached in a progressive and gradual way, leading towards a rich future. ritual/implementation - behaviour/connection - difference/mitigation - ephemeral/ activation - assets+modes/tangibilization or adaptation

RITUAL; connected culture

WHAT Ritual stems from the connected culture. This implementation and initiation part is shaped around the drivers for change. For instance, the background of nodes and triggers is the need for connectivity and validation, reshaping global markets for the future, having convenience on demand.

WHY Current physical artefacts people are leaving behind do not fit into the norms and do not stimulate positive results. Through the use of digital technologies, social media, and social commerce, users can create a new backbone network and share a new culture of commodities. WHO Either individuals or the group as a whole

OPPORTUNITIES

CONNECTION; Homogenous community

EPHEMERAL; mobile, temporary solutions and diluting fundaments

WHAT Connection is the part which ensures the sustainability and resolution of conflicts takes place. It leads to the evolution of communities, making them symbiotic with the social norms. The balance is achieved with the homogenous community. WHY Know yourself and know your surrounding schemas can become highly relevant, which can facilitate the shift from linear economy to circular economy. Obtaining a social priority, influences people’s relationships with the properties and experiences driven by companies. As the globalization goes local, customization and experimentation within experiences is easier to achieve. WHO Community as a whole

WHAT Thinking beyond the limits and miniaturization of the notion of new and here. Ephemeral is all about the modifications in systematizing time and space. It involves temporary solutions and mobility for stimulation of the symbiotic community and retention of resourcefulness within those. WHY Reducing the intensity of use and diluting fundaments with the physical presence as a backbone and core for a success. Brick-andmortar need to migrate into the future potential and become more flexible. WHO Companies, brands, systems, regulations

DIFFERENCE; maximized resourcefulness, minimized waste

WHAT Extending the retail and focusing on the privilege given by the Internet of Things era. Pre-programming the services and recontextualizing the possibilities based on capabilities, assets part is the owner of change and artefact of daily living. In the context of societal and economic aspects, it is the resourceful food as property creation and consumption. WHY Retail is shaped by many categories, food being one of those. As the mechanisms stimulating the distribution are populating the environmental sphere, food is at the top of the list to become the asset and property of change. Optimizing CPG products and fresh food allocation, technology allows for new categorizations and systems that are needed for the growth of symbiotic future. WHO Distribution systems, logistics and operations, companies, products

ASSETS; final focus: resourceful food as property creation and consumption

WHAT Using the tools and mechanisms of behaviours and rituals, difference describes the advantage on both big and small scale. Difference is directly linking companies and their stakeholders to end-users. Leaving a new post-globalization footprint, that is reiterated for the sake of the future. WHY Flexibility and fluidity in the modular economy is needed for minimizing the waste and maximizing the resourcefulness. It then reaches the potential for people to share their tools in the future and build something new. Conventional economic thinking is misleading with the assessment that ‘bigger is better’ (E.F.Schumacher in Small is Beautiful: A Study of Economics As If People Mattered) WHO Companies, corporations, business, societies. 39

PROPOSAL

proposal You can start designing the new retrieving the past and using it as a filter and foundation to build upon. But you can, and should, start from the empty and bright base that obtains no carriers of what is already there and what has already happened. The absolute reset is the condition that lets all the possibilities spring and form into a feasible and viable platform. That platform allows one to rely solely on the fact of newness and futuress. The key into understanding the current changes in the societies, cultures, technologies etc. is that the future needs to be formed in a new dimension and it is imperative that it evokes new behaviours. Those behaviours will become the tools that groups of people can form and companies can use them to form inner softwares while creating systems around them. Key role here play people that do not belong to the new consumer generation or do not feel it. This new nature is forwardlooking, starting from scratch and carrying lots of new possibilities. And if a company wants to fit under these a change is not enough. The whole system needs a transformation, a transformation on new levels in a holistic way.

PROPOSAL

Many companies do not realize it yet, but the consumer packaged goods (CPG) industry is facing a winner-take-all world. Companies that want to finish first need to take action in many ways, such as fight for digital “shelfspace” prominence; develop the capabilities for click and collect; keep pace with new business models; retool marketing and media; and develop digital leadership. (information obtained from a report by Boston Consulting Group) Grocers’ most important customers— young families and affluent couples—are especially ready to take advantage of online grocery shopping. As people can proliferate and benefit from it, the markets should deliver on those realms and disconnect from the past, for a holistic approach to rethinking and reimagining the real potential. 41

PROPOSAL

(...) a platform that instead of questioning the society and its condition, answers the needs for it to change (...) With these inevitable processes, discovered concept, exemplified frameworks, defined social and cultural structures, and outlined future direction, my proposal accumulates all these nodes for an upward progress. The layout of this information led me towards a clear pathway of redesigned retail, and food retail specifically, system. My focus was selected with the apparent stagnation and slow digitally-driven advancements that, as they may bring convenience for the users, do not really change anything regarding the system and environmental issues. I tackled a global problem to find a local solution that could be law and politically regulated. My approach was to highlight an opportunity for a substantially enhanced value proposition. Iterating quickly to adapt to rapidly changing conditions required me to penetrate the minefield of CPG manufacturers, food distributors and retailers. From the beginning, I was drawn towards the biggest Canadian food retailer, Loblaws. Knowing that itsâ&#x20AC;&#x2122; enormous scale can bring the most excessive and impactful influence and transformation on the market and economy, I felt that it is the best fit for my project. Hence, I am proposing a platform that instead of questioning the society and its condition, it answers the needs for it to change. Focusing on the distribution of grocery and its delivery, the project engages many assets, properties, and logistics solutions. Not only can it stimulate a positive growth within the selected company, but also drive the change in the freight, reduce the factual data of carbon, create a new glocal customer village and shape its lifestyle, use the networkability and technology for a better matter in the future, and apply the convenience and comfort on-demand. Revenue is associated with a new market and economy opportunity, improvement of the operations, and impact on the customer experience. The future is today. 43

PROPOSAL

loblaws All the research and thought experiments presented above in the previous units, led me to the arrival of a final scope of the project. With a strong focus on food, e-commerce, personalization, convenience, digitization, and unlearning, my project got bound within the frame of subscription economy as a new and growing form of living (discussed later in the next chapter). After the sharing economy, we are in the era of expectation economy. Customers want more. They keep demanding more within the quality of the goods and service. They want to know more and contribute to the world with positive impact, as some companies become more transparent and offer this value to their clients. Lastly, they want to get personalized and curated experiences that have unique value to them and intangible status currency. (trendwatching) Arriving from all these aspects, I looked at the current forms of how market is growing, what areas have been implemented by this new economy system, and how unlearning is taking place within

the certain fields. Transportation system is revolutionized thanks to ride-sharing company UBER. Behavioural changes are observed as now everyone can rent his space if registered to AirBnb. A big idea and new invention gets crowdfunded as people spend their own money, believing it is a successful idea that should be executed. This analyzed broad spectrum of services, cleared my path for the selection of food industry and retail as the main focus of my project. Going through small changes on a micro scale at this point, I see an opportunity to draw upon and leverage it to a bigger scale for the masses. The change is much needed within the minefield of tracking devices, raising demands, smart objects, and personalized experiences. The idea of unlearning, which is the basic premise and the core foundation in the researched theme, lets me implement this framework to any field and branch of life. However, it is the retail that should undergo the major transformation in this age of data. 44

PROPOSAL

Using my unlearning framework I landed at the point of scanning the retail and food market for signals, shifts, and triggers, that point out new directions to draw upon, and the ones that suggest unlearning is actually taking place on a micro scale, without consumers realizing it. This incognito curation and stimulus, done effectively by many brands, is only a tip of the iceberg of an actual movement and transformation of mainstream services. I started analyzing a shift towards curating services, convenience at the doors, and personalized orders. It led me to the discovery of a steady, but gradually growing interest in the surprise and subscription boxes, with a growing demand and popularization within todayâ&#x20AC;&#x2122;s clientele. I quickly arrived at seeing a pattern within this post-demographic consumer behaviour, breaking the conventions and constructing a new, personalized lifestyle and consumption model. Defined as subscription economy, I acquired this concept and strategically redesigned for the best fit and value proposition of my project.

Using my layered framework, it became an easy process of filtering the information, and choosing the right target and stakeholder for value expansion. Drawing from the research on food retailers in Canada, it became obvious that Loblaws is the best place for my idea placement. The largest food distributor in Canada (wikipedia), it just recently started seeing the missed opportunity within the current savvy technologies and clientsâ&#x20AC;&#x2122; preferences and lifestyles. Opening a division for digital experiences, Loblaws allowed customers for ordering their groceries online and collecting them at the store. The service, commonly known as Click & Collect, utilizes digital media for a resource and brings a certain level of convenience to the users. However, simplifying busy urban lifestyle must be done more efficiently and on a deeper level for users to see it and truly adapt to their daily living. Hence, my project is a unique proposal for Loblaws, as the merge between bringing the tomorrow of digital food retail shopping, and regulations of the bigger system take place. The subscription economy gets a new, fresh shape with a humane twist. Leading Loblaws to be omnipresent and become part of oneâ&#x20AC;&#x2122;s life for as little effort as possible. Bringing comfort without getting out of the way. Through such additions of digital and personalized twists (as discussed in the following chapter), Loblaws will offer value and service like no other company on the planet. Loblaws will become an on-demand e-tailer, drawing nodes and technology of the present to step into the future of customer experiences (CX). 45

PROPOSAL

loblaws 365

Loblaws365 is where the project enters on a full scale. It is a forward horizon raising a new generation of customers. Through increasing popularization of lockers as storage for grocery orders, Loblaws365 not only is implementing this technology (already used in other countries), but also adding an incremental value with itsâ&#x20AC;&#x2122; subscription service, digital add-ons, and new relationship bond with the retailer through partnerships with other companies. It all results with customers feeling of raising the positive impact on the local industries, getting better service, becoming more personal, and creating an intangible gain on both ends. For Loblaws, it means new customers and stakeholders (chapter 5.b.v), new partners in business (look at 5.a chapter), new and stronger relationships with users (value proposition), new branding and identity for the products (5.b.vii),

new system of packaging (introducing the box, chapter 5.b.ii), and new system of ratings (5.b.iii). Most important part of this system, is a new operations plan and logistics of freight and distribution. Loblaws365 is a futurepowered, sustainability-oriented service, that reduces the carbon footprint everyday, all year round. Powered by consumers and their data, it can reduce greenhouse gases (GHG) and reduce the waste. Approaching the ecosphere combined with techno-sphere, the digital world will optimize the balance and find the equilibrium for positive growth on both ends. Loblaws can become a pioneer in the field and a role model to follow, while creating a new partnership with another big, established company on Canadian market- Canada Post. 47

04 52 58

MAKE-DO LOBLAW

LOBLAWS365

Arriving at the refinement of the concept is where the conceptual frameworks come into realization. Make-do is the part where the analysis of Loblaws and Canada Post, the key players in the proposal, is defined. The key part of it, however, is the detailed description of Loblaws365. While the conceptual part was already discussed, this is where the production and design segment is laid out. Along with the outline of the service, itsâ&#x20AC;&#x2122; model, value proposition, and carbon footprint case study, all the digital work is also presented in this unit. 50

LOBLAW Loblaw Companies Limited is Canada’s largest retail and wholesale food retailer, as well as pharmacy leader, with about 1,000 operations across the country. Founded in 1956, Loblaw focuses on food retailing with the purpose of providing consumers the convenience of one-stop-shopping. The company operates under a number of banners, including Loblaws, No Frills, Superstore, Maxi, and Zehrs Markets. The company is on the vanguard of private label, also known as generic, brand merchandise. The company’s wholesale business serves nearly 12,000 independent stores in Canada. In their annual report, Loblaw Companies Limited revealed that their average store size has grown year over year. In 2015 the average size of a Loblaw’s store was 60,400 square feet – bigger than a football field. (information from referenceforbusiness.com) Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, banking, and wireless mobile products and services.(westerngrocer.com)

LOBLAW

MARKETING LIVE LIFE WELL

PC PLUS

In 2014, research indicated that local sourcing, healthier food choices, and waste and packaging reduction matter most to consumers. Loblaw’s purpose – Live Life Well – supports the needs and well-being of Canadians who make one billion visits each year to the company’s stores. (Loblaws 2014 CSR Report) Loblaw is positioned to meet and exceed those needs in many ways: convenient locations that span the value spectrum from discount to specialty; full-service pharmacies; no-fee banking; affordable fashion and family apparel; and, three of Canada’s top consumer brands in President’s Choice®, Life Brand®, and no name®.

Since launching its PC Plus loyalty program in November, the company said it has signed up more than four million users, entering more than one third of every home in Canada, according to Colloquy, an industry research group. Customers that are engaged with PC Plus continue to make more trips to the stores, shop a larger average basket and shop more categories. (marketingmag.ca) This next-generation loyalty program embraces customers and their choices and preferences, bringing savings on cost and curated deals.

LOBLAW

POSITION Loblaws owns 1142 corporate and franchised grocery stores, which are supplied by goods from 27 distribution centers. The revenue of 2015 closed as of $ 45,394 compared to $ 41,822 in 2014. Their mission statement reads; ‘To be Canada’s best food, health and home retailer by exceeding customer expectations through innovative products at great prices.’ Customer segment is its primary focus, and within that approach, Loblaws wants to carry out best services and value on the market. It also believes in getting better through improvement of quality of foods, sustainability and store systems. While keeping a core focus on the company’s operations, it also contributes to the community and cares for the environment, looking specifically at food waste, recycling, and packaging. Loblaws is not afraid to implement innovation, either through products or systems. Currently, they are expanding their Loblaws Digital branch, focusing on strategic design, foresight, and user experience side. They are very determined to serve customers, and to adapt to their needs. 55

LOBLAW

STRATEGY CSR In 2012, Loblaws we added 57 new, more efficient trucks to the fleet, bringing the total to 195 trucks that comply with the rigorous U.S. Environmental Protection Agency 2010 emission standards. Those new trucks alone provided a fuel economy improvement of 7.5%. Among many targets, sustainability is one of the most important drivers of change for the company, causing lots of adjustments and improvement each year. Currently working on a number of other initiatives, Loblaws designed to reduce fuel consumption and improve fuel efficiency through Intermodal Transportation (use of more than one mode of transport), Long Combination Vehicles, and Lift-a-Deck systems. The constant focus is also on reducing greenhouse gas (GHG)

DISTRIBUTION emissions. Loblaws does not point an attempt to implement new strategy for this matter. Rather it only improves all the assets and tools they already have in possession. For instance, they work on lowering energy consumption in the stores and distribution centres, improving efficiencies in the transport fleet, and expanding the use of renewable technologies such as solar panels. (all information from loblaw-reports.ca) Statistics are therefore showing a slight improvement for the corporation, estimating 2014 emissions of carbon dioxide (CO2) equivalent to 1,034,478 tonnes compared to 2012, with 1,098,975t.

Loblaws is constantly innovating for the benefit of their shareholders, their subsidiaries, and their customers. It stands as a self-distributing retailer. Manufacturers deliver directly to these centers of distribution. The retailer then distributes the product to individual retail stores. Having a large fleet of vehicles, it has a carriedout system for logistics of transport infrastructure, including roads, rail, air, and road transport,. It also owns the methodology for handling food, with the application of current technologies, that includes refrigeration, storage, and warehousing. Based on the demand and need, they reiterate their strategy to fit within certain community, territory, and customer segment.

LOBLAW

LOBLAWS365

LOBLAWs365

LOBLAWS365

Loblaws365 is a model redefining life as we know it, through a reorganized system, redefined value and distribution chain, regulated service, educating clientele, and moving into the future of retail. Through generating profit, it opens a new window for a supply chain. More efficient, cost-effective, and responsive distribution channel is at the highest stake in this proposal. It plays with the consumersâ&#x20AC;&#x2122; thinking around value and innovation. Loblaws365 basic is firstly a lifestyle platform with the main premise being a delivery service of consumer packaged good and household staple, InGrocer+ (read more about the concept itself in the next chapter). Through the use of a system of automated parcel lockers to hold purchased items it changes the economy and distribution. Delivering convenience to a modern customer, it also brings comfort and allows for anytime pickup and tracking from start to finish. From a sustainable point, it eliminates a major gameplayer in the chain - bringing the products to the store- by distributing the orders around the city, straight to the strategically placed modules of lockers. This changes the whole system as known today, where the delivery truck has to return from itsâ&#x20AC;&#x2122; original destination to its point of origin (also known as backhaul), and all clients

having to go to the the store to obtain their purchases. Loblaws365 cuts all that distance where the distributor trucks drop the deliveries and customers can either walk to their preferred drop-off station, or drive a most convenient distance for them. The app coming with the service also includes a guide (among many other features), which aims to help customers optimize their order and personalize the purchase, according to their wants and priorities. Loblaws365 on top of the grocery delivery service has a main feature being a fulltime partnership with Canada Post, connecting the two main delivery systems ruling our lives: mail and grocery. It brings people closer to their belongings and possessions, creating an opportunity to get two things done at the same time. The locker system, strategically arranged around the areas- whether it would be a smaller neighbourhoods, certain district, or in between a block of condos- becomes a full-time carrier of the possessions. It is designed for two different component sizes carrying respectively mail and grocery, while the grocery one, bigger compartment, features a cart for the easiness of use, delivery, transport, and carrying it over to home. The locker system itself is discussed in more context and details in the 5.a.ii chapter.

LOBLAWS365

VALUE PROPOSITION

LOBLAWS365

CONVEnieNce & comfort Loblaws365 is looking at every element in terms of how people live their lives. It is well suited to the lifestyle of busy and mobile consumers. By such highlights of qualities as elimination of the distance, elimination of the inconvenience within time and place, increasing personal service and shopping, it optimizes everyday living. The value proposition focuses on two different regions: users, environment, and systems logistics. It is important to note that with the growth of the service, the global market is likely to augment and reorganize itself. The supply chains will be regulated and systematized, which eventually will to changes on on the glocal scale, benefitting from the innovations. Loblaws365 allows users to have their freedom of choice both in the digital sphere and within the physical spectrum. It brings effortless routine to itsâ&#x20AC;&#x2122; customers maximizing the convenience for personal optimization of daily living. This well-suited innovative platform is time- and space- flexible and adapts to an individual. With its modern approach, it uses intelligent and smart technology to support daily chores. Ready-to-order, pre-arranged tailored for you selections are always ready within a click on the app. InGrocer+ offers best quality and service on every basis, and brings a new relationship to consumer packaged goods and food items. Further value comes with the unequivocal reduction in the number of impulsive shopping. Delivery service makes it disappear along with the emotionally-driven 61

purchases, and last second picked up items displayed at the checkouts. Loblaws365 overturns the concept of grocery distribution chain as a pollutant, instead exploring how it can become a valuable asset for both users and environment. This future-oriented vision of a grocery store brings everyday savings and positive impact for a better tomorrow. InGrocer+, as a delivery service, is transparent in a holistic way, which includes informing the clients about the carbon footprint reductions they are contributing to, as well as making sure the social responsibility, including the distribution system, is always clearly outlined. (See the calculations on page 88) The communities also gain attention and prosperity with this initiative. Loblaws365 wants to support local creativity and bring the people together. Each locker for the grocery delivery will be painted by a graffiti artist, turning a piece of metal into a work of art. (more about this on page 96) The platform and itsâ&#x20AC;&#x2122; service helps with the economic challenges of underemployment, unemployment, and lack of opportunities for people. Investing in future work cohort, Loblaws365 can accomplish growth of the organization and new work placements. By implementing new system of distribution of goods, delivery of merchandise, it will create new job and placement opportunities that do not exist yet.

LOBLAWS365

ONLINE SHOPPING DILEMMA Online grocery sales in Canada is still in a baby stage, making only a fraction of 1 per cent, according to Strategy&. People are just getting acquainted with that new form of getting their goods. Delivery is a great option for people without vehicles, for those who are disabled, seniors, and the ones who are simply lazy. Meanwhile, 78% get their groceries done weekly and 29% even more often. It turns out, that impulse-shopping is still a problem with almost a third of shoppers still spend more than planned to. (all data by mintel.com) Online grocery in that case holds a great value. Not only does it save time, but also money. Among consumers, especially the young and those with families, the opportunity of grocery shopping online is highly likeable. Owing to their greater inclination towards shopping online, the appeal of online shopping is higher for younger grocery shoppers including 26 percent of those under age 45 and 32 percent of Asian Canadians. (mintel.com) However, in general Canadians do not seem to be interested in grocery shopping online and have never done it before. Resistance stems primarily from concerns around the freshness of products.

Loblaws365 proposes changing the direction of that concern. This new approach to the selected goods for delivery while still keeping and maintaining the most important aspect for users: being able to pick their fresh produce, means a unique value proposition. An online survey carried by Global News, with a total votes o 2569, asked ‘Would you ‘click and collect’ you groceries?’, whereas one of the possible answers was ‘No, I would prefer if they delivered’. More than 30% of the respondents picked that option. That’s where the value of Loblaws365 lies. The people do carry about the convenience, and comfort while having the quality delivered to them. Loblaws is currently missing a huge opportunity. Being the number one food retailer and distributor in Canada, and having 1142 stores around the country, they can bring an enormous change for the planet and daily customers. According to Keith Anderson, vice-president of strategy and insight at Profitero, online grocery could rise three to four times faster than bricks and mortar sales over the next few years as Canadians begin to do their full shop online. 62

LOBLAWS365

CULTURE OF INNOVATION Loblaws635 stimulates a culture of innovation. With the strong fleet and partnership between Loblaws and Canada Post, its’ freight brings more than expected. This opportunity covers both mail and grocery delivery, for more convenience and more savings - hence the brand essence ‘More than a Milkman’. Stimulating new culture of consumers that have new outlets for their convenience delivered up to their preferences, the innovation stands as a reformer of lifestyles and optimizing life choices. The clientele can significantly create a new consumption model to be systematized. CPGs and orders can go through a major improvement. By new categorization of those and reduction of packaging, the new economy and market model gets stimulated. People operate in a visual world. A simple system of coding is crucial. None of companies sees the opportunity of this direction. Not only does it reinforces global postulates of having positive impact for the environment, but also educates the client in the subconscious way. It is an intrinsic and subconscious way of customers going through a process of unlearning.

Tapping into a new reality, and implementing new resources for optimized lifestyle, a new generation is shaped. The key to success is providing compelling digital engagement with shoppers (e.g., online shopping, lists, delivery) with an authentic digital narrative focused on food (e.g., nutrition, flavours). Current systems does not involve a balanced and accessible way for both of these experiences. Star-ratings are not enough, and user reviews can be too much outof-focus. Packaging may be informative but it never reveals what the real value it holds. Digital and mobile solutions are a way to improve the system and provide new value for others. If a user wants a certain type of peanut butter, the packaging is not important, it is what’s inside. Therefore, new ratings for food categories, including taste, texture, thickness, among a wide range of other features for different categories, is part of the platform’s proposal. It will allow everyone to create a new database of food items, and household and beauty and wellness products.

LOBLAWS365

SERVICES

LOBLAWS365

InGrocer+ InGrocer+ is a delivery service of consumer packaged goods and households staples. Delivered on-demand to Loblaws customers, it adjusts to an individual living of modern generation and through the use of current technologies, it stimulates new and more convenient lifestyles. Read more about it on page 80.

LOBLAWS PULSE Another option is Loblaws’ is a bible of a future consumer, Loblaws Pulse, a monthly online magazine featurette written and curated exclusively by Loblaws team for you. Created and tailored specifically to cater for its’ client’s needs and wants, so it can learn about users bodies, choices, and dietary needs on-the-go. Through this Loblaws will give the users an opportunity to get educated on their own and build a stronger relationship with them through this digital medium. Loblaws Pulse includes ‘Cookbook365’, a database for recipes, articles tailored for an individual, and a social network for following Loblaws gurus in such fields as nutrition, well-being, fitness, health, and more.

LOBLAWS ASK Loblaws365 offers support on the levels of education, knowledge, and lifestyle. Knowledge about food is valuable and fun. Knowledge about nutrition becomes really relevant when it is about your food. Through offering a mobile nutrition and dietary advisory assistance, together with the users Loblaws can create a stronger community of empowered, self-aware, and healthy-happy consumers. The app features an option that can establish a relationship between a user and a dietitian. The recommendations can vary from healthy family meal planning to athletes dietary needs. Loblaws365’s strong backbone of professionals gives conscious and sustainable suggestions creating educated customers. The feature has a free trial which can be extended into regular scheduled sessions or even in-store appointments if needed. 65

LOBLAWS365

LOBLAWS @HOME Creating a conscious and aware consumer of the future starts at home, so Loblaws365 wants to make sure that the change our clientsâ&#x20AC;&#x2122; make starts also there. @home gives a convenience of making it happen through a household advisory and year-round workshops. @home feature of the app has a stream of online videos curated by Loblaws team to help you with the household maintenance, housekeeping and homemaking. Building a new community, users can suggest their own applications or ideas, or even post their own photos/videos with a hashtag #@home The workshops give an opportunity for people to meet and channel their inner artisan spirits on many levels, through cooking, crafting, baking, household management tips and more.

PCplus EXTRA Loblaws365 takes advantage of the PCplus program and incorporates it into the system. By using InGrocer+ and other resources of the platform, the incentive is to score extra points and save on the next delivery. An option of a referral is also a way to increase the total amount of collected virtual currency. Stemming from the idea of gamification, each individual can achieve new levels within the systemâ&#x20AC;&#x2122;s internal score of thresholds, resulting in further reductions. 66

LOBLAWS365

FOOTPRINT

LOBLAWS365

Loblaws365 is a conduit of change. With the growing issues around global warming it responds appropriately to the needed transformation. Motor vehicles are major producers of carbon dioxide, a greenhouse gas that contributes to climate change. Loblaws365 is a concept which tackles the problem and proposes a solution on massive scales, for major savings in terms of cost and carbon emission. Both for the retailer, the consumers, and also the planet benefit from Loblaws365. Right now, e-commerce makes up less than 1 per cent of Canada’s more than $120-billion of annual grocery sales, according to global online market researcher Profitero. (theglobeandmail.com) Things can dramatically change and alter current means of living in a positive way through the acquisition of this proposal. To exemplify how big the impact of Loblaws365 is, I present several research findings to prove the concept’s backbone. The savings coming from using InGrocer+ itself are discussed in the next chapter. A number of studies have looked at the carbon emissions from different perspectives. They include analysis of online shopper footprint, brick-and-mortar shopping and carbon emission through different means of travel, savings and more. Through those gathered case studies presented below, it is elicit that e-commerce and delivery of purchases is the future of retail and positive impact on society and environment. Therefore it needs to be implemented on vast scale and become an obvious choice in consumers’ minds. If more people are using this method, the more positive impact is drawn on to the environment, thus reducing the carbon footprint and producing enormous savings. The case case study within the InGrocer+ system, specific to Loblaws365 is described on page 71 and 82. It shows the impact of Loblaws365, and its’ model of distribution and retail proposed in this project. Based on the gathered research and data, it focuses on the most important parts and things to improve upon, and through detailed calculations, the numbers are clearly outlined, drawing a huge line between how much is spent today and how much it would be spent and saved if the service became omnipresent and part of daily of living. 69

LOBLAWS365

SCHOLAR At the time really viral findings initiated the change in thinking of doing groceries. University of Washington engineers have found that using a grocery delivery service can cut carbon dioxide emissions by at least half when compared with individual household trips to the store. According to their calculations, service trucks produced 20 to 75 percent less CO2 than the corresponding personal vehicles fulfilling a grocery trip. Their analysis also included discovered savings for companies, stating carbon emission could be cut by even 80 to 90%. It was based on the assumption of development of logistics for delivering the goods based on routes that clustered customers together. Erica Wygonik, a UW doctoral candidate in civil and environmental engineering, argues that “(...)what’s good for the bottom line of the delivery service provider is generally going to be good for the environment, because fuel is such a big contributor to operating costs and greenhouse gas emissions. (...) Saving fuel saves money, which also saves on emissions.”

ONLINE A case study conducted by an online service persquaremile.com analyzed scholar resources and research papers to compare the findings carbon emission tied to the different ways of doing grocery shopping, being home delivery and physical purchase of items. It clearly states that brick-and-mortar stores are inefficient, as transporting people to and back from the store requires a lot of energy. If an order is made online, it goes straight from the distribution centre directly to one’s home, optimizing the route to waste the least amount of fuel. Everyday shoppers don’t take those details into consideration. As outlines, to equal the efficiency of a delivery, one has to buy a lot of items: 24 items per trip equal to the carbon footprint of just one items ordered online. 70

LOBLAWS365

Looking at a selected list of companies who are specializing in delivery options, I carried a case study to differ the proposal of Loblaws365 compared to them. MARKET SCAN

Amazon Fresh and Instacart are With its’ focus on education, currently the best thriving service for delivering sustainability, consumerism, and relationship, groceries. Both of these, increasing their growth Relay builds a community of knowledgeable each year, do not facilitate what Relay and and conscious customers and proud pioneers Spud value proposition, being the connection of future households. As it claims: ‘We’re here with farmers and laid out information related to to help you connect to and learn about the eco living. It is important to highlight that they people who grow your food, and to empower rather focus on getting the groceries done and local producers by providing the online resource having them delivered to each household. The for learning about their products and practices.’ reductions of carbon emission are facilitated, Relay cares about the relationship between the hence the sustainability aspect in both service producer and end-user. It educates the people models is managed and sustained. Amazon for a quality, healthy, and sustainable grocery Fresh as a branch of Amazon is a major shopping. Relay wants to create simple and easy player in the e-commerce and e-tail market. experiences with a convenience of having daily Stepping into the delivery of fresh produce, staples delivered to a user’s household. it wants to grow its network and impact. Spud, with its’ annual sales of $16 Priding itself in high-standards for greatmillion, creates a strong link between farmers tasting produce, Amazon claims products are and customers. It lists all the local sources for selected ‘with the same keen eye for quality obtaining its’ fresh produce, it stimulates a as if you picked it yourself’. (Amazon Fresh sustainable local food economy and community. Commercial) Instacart, a 4-year-old third The strong emphasis on transparency is carried party service, links the grocery store with the out by such information as display how many consumer for a convenience at one’s doorstep. km the food has to travel, where it comes It relies on independent contractors, to deliver from, each user’s and individual’s impact and orders, directly from existing grocery stores. more. It suggests healthy options and supports (Bloomberg Youtube Channel) customers choices. The reason behind their All of these services are an opportunity online branch is summed up in a statement: of creating a modular, circular economy model ‘Research has shown that crowding in grocery of local villages, that stimulates a global impact stores has a negative impact on shopping on the carbon and greenhouse gases emission. experience, so we can only expect that size to Loblaws365 improves the retail and food continue growing as the population increases.’ system, bringing benefits to all stakeholders. 71

LOBLAWS365

POSITION / BRAND

LOBLAWS365

BRAND CHARACTER & ESSENCE

INNOVATIVE We put modern and emerging technologies as one of the main drivers for more immense experiences for our customers. We believe everyone can feel more comfortable when supported by intelligent services and smart solutions, powered by more than one source.

EASY We offer friendliness and simplicty but it is the many years on the market, and utility of gathered user experience cases that gave us an expert knowledge for creating effortless choices. It allows us to fully optimize the service for you making it more personable and outward than ever.

CONVENIENT We challenge the status quo for convenience and transform the way people put together what they want on a daily basis. By adapting to your personal preferences and daily living, and giving you flexibility, we can bring your needs and wants closer to you.

VIBRANT We believe personalities and people are beautiful. Sense of celebrating culture, thoughtful contemporary and bold creative concepts bring life to our displayed system, embracing diversity and promoting bright minds. We want to make sure we create a link between us and our customers, creating a strong community.

LOBLAWS365

ATTRIBUTES

modern preventative

optimized

charismatic

adaptive trustworthy

fun outward

immense intelligent

flexible personable

LOBLAWS365

THINKING

intelligent adaptive

flexible

trustworthy preventative

INTROVERT

EXTROVERT immense fun

optimized

charismatic modern

personable

outward

FEELING

LOBLAWS365

CORE VALUES

innovation reliability

digitization

transparency

future focused

responsiveness

distinction

customer focus

built for you convenience

LOBLAWS365

MISSION LOBLAWS365 delivers daily essentials with a great positive impact for all.

VISION LOBLAWS365 believes future economy is personal and sustainable, and each lifestyle is self-curated and unique. Thinking beyond delivery, it believes in the power of digitally-powered initiatives capturing their core benefits, for the growth of conscious society.

HORIZON 80

IMPLEMENTATION

CARBON FOOTPRINT

STRATEGY

IMPLEMENTATION

IMPLEMENTATION The main feature of Loblaws365 platform is the delivery service tool, InGrocer+. Being more efficient with a delivery of multiple packages to a business address, it is carried out by the partnership between Canada Post and Loblaws. A delivery truck picks up the boxes filled with consumer packaged goods from the distribution centre, which were previously ordered by an individual, and distributes them around the city to the locker modules. In the next few units, I am describing how InGrocer+ carries out the deliveries, I analyze Canada Post as a strategic partner, the experience is clearly outlined, and the design is presented.

IMPLEMENTATION

SERVICE INGROCER+ InGrocer+ is a delivery service of household staples and consumer packaged goods. Since the brand does not own any trucks and resources for implementing last-mile delivery aspect, the best option is to outsource this branch and acquire a company that already does that. A company that is well-known and established on the market. Through the analysis and benchmarking, it turned out that one of the best and commonly used delivery methods is government regulated Canada Post Corporation. This allows Loblaws to stay within the aspect of local and national, while importing and exporting the goods. In this system, Canada Post, as the landlord and owner of delivery trucks, picks up the orders, each assigned a unique code, and distributes them directly to the lockers-mailboxes around the city.

Since the service already has a fully-developed logistics systems for delivery around the whole country, it only needs to be changed in a minimal way by adding a stop at the Loblaws’ distribution centre for grocery boxes pickup. This way it adds on a new destination on the way without causing too much of an interference along the way. The trucks can easily facilitate the ordered goods and drop them off at the locker station along with the mail. Canada Post fleet has been operating the mail delivery for years, therefore a major reorganization of it does not need to take place. Instead, the system for clustering the groups of people according to their households and neighbourhoods will take place. This also means a different locker, whether the locker is placed in the condo area, it will only have a bottom compartment, allowing for the boxes to be delivered. If it’s a neighbourhood or subdivision made up of houses, both mail and grocery compartment modules are placed and arranged in the community. Expecting the growth of interest, modules are flexible and can be added as the interest and demand increases. See more on page 103. InGrocer+ doesn’t carry fresh produce, find out why in the Future of Loblaws chapter.

IMPLEMENTATION

LOGISTICS The system included the user proceeding with the order of the grocery (via an app or a website), CPG manufacturers retrieving the specific to the order information, Loblaws distribution centre proceeding with the packaging and arrangement of boxes for delivery, CP fleet carrying and delivering the purchases to the lockers. Based on the community and neighbourhood different types of lockers were designed to answer the needs of the customer segment. 82

IMPLEMENTATION

CANADA POST CASE STUDY Canada Post remains enormously profitable service bringing $1.5 billion in profits to the government in the last decade alone. There are almost twice as many post offices as Canadaâ&#x20AC;&#x2122;s ubiquitous coffee chain Tim Hortons. In its bricks-and-mortar scale, in the millions of its daily human interactions, the postal service knits together thousands of communities â&#x20AC;&#x201D; a retail network unlike any other in the country. (all stats from theguardian.com) With an announcement in December 2013 of ending door-to-door delivery to more than five million households (now halted due to the changes in the Canadian government), it predicted that up to $500 million annually could be saved if community mailboxes became omnipresent and common. All these facts validate the proof that Canada Post is still an important player on the market, being one of the most viable and used service nationally. The communal mailboxes they own would make it even more profitable if used in another way, working in pair with todayâ&#x20AC;&#x2122;s clients needs and emerging technologies. The company owns a huge number of those units which will be implemented in the system, remaining the reliability aspect of it. This is why the partnership between Loblaws and Canada Post is empowering them both at the same time, while stimulating a big change on the market and economy. Proposing a new companionship, the corporations benefit from each other. Canada Post is the proprietary owner and landlord of the mailboxes turned into lockers, while still being able to maintain the main service they have been serving: delivering the mail. Loblaws is

the owner distributor of the goods and the packaged goods, which all get sorted out in the distribution centre. The partnership between CP and Loblaws, Loblaws356, is a concept in which CP designates their delivery trucks for a pickup of ordered boxes- extra destination on the map- without having to change the routes they already have. Loblaws organizes the packages and deliveries for an easy pick up and passes it on to CP for a maintenance, until it gets delivered to the locker for a clients pick-up. In this scenario, CP can deliver both mail and groceries at the same time, creating a new value for the company, drawing from the current system and technology. No alterations means easier implementation. Partnership means broader context and expertise and new relationships with customers. Delivery means carbon emission savings for the planet. A seamless experience is achieved.

IMPLEMENTATION

TECHNOLOGY The service features a commonly-known technology of the automated box lockers. It allows for picking up the box 24/7, any time of the year, based on the preferences and selected location. It is also delivered to the locker within a chosen, most convenient time frame for the user, and kept in for a certain period of time. The locker system eliminates the failed delivery issue, so common for home delivery service, whether it is grocery, retail items, or mail. The placement really depends on the community, and the number of modules answers its needs, whether it’s only a few unit with mail and grocery compartment close to a community centre or at a gas station, or multiple bottom parts in a condo area. The idea is that one locker can facilitate order for one customer at a time, but when not used, another customer gets to pick up his order from that locker. Hence, this communal and sharing aspect becomes vital and implemented while expanding it into the motion category with the fact of moving an object of interest around the community. The opportunity here is to have those lockeres solar-powered, meaning creating less carbon footprint and being more energy efficient. Security cameras monitor the are to ensure that the units are safe and not violated. Another option is to have those locker points used for donating or recycling customers’ electronics, and non-perishable food items. That brings even more benefits for the society and communities. Loblaws365 can stay on the green side and ensure its’ leadership in that realm.

The process of accessing the purchases is self-served. Each module is opened with a code sent via text message. The customer uses terminal’s touch screen to obtain unlock the door and obtain the goods. Loblaws365 core lies in the convenience. With ath in mind, it gives a flexible timeframe for each customer to pick the merchandise. Another add-on for extra comfort and easiness, is a cart housed in each locker module. Allowing the user to have this convenience, it is up to him whether or not he wants to use it. The carts grant an easy drop-off and simple, hassle-free transportation of the goods back home. Each user gets an individually calculated time allowance for the use of the asset. If not returned on time, the penalty is added to the account. Canada Post already owns the property where the mailboxes are placed, which are the properties themselves as well. That’s why in Loblaws365 case, CP can be referred as both an owner of space and landlord of it. Letting Loblaws use the storage area for delivering the groceries is a concept stemming from sharing economy but moving forward with the more collective aspect of it: circular economy for a glocal village.

IMPLEMENTATION

CARBON FOOTPRINT

CARBON FOOTPRINT In the past few years human-caused emissions of greenhouse gases are tipping the balance towards climate change as they disrupt the natural processes occurring in the atmosphere. The Canadian government wants to maintain strong economic growth and job creation without sacrificing environmental objectives (Environment Canada, 2013) my project helps maintaining this balance and brings a solution for the challenges of todayâ&#x20AC;&#x2122;s world. Facing a growing discussion around the global warming and emission of greenhouse gases, ability towards fostering a positive climate change can be achieved with the implementation of the system. Food distribution that relies heavily on transportation can be redesigned around that issue. Thus, the system can mitigate this carbon-dependant infrastructure and contribute to emission-reducing measures and strategy. Bringing the huge impact on the national scale, Loblawâ&#x20AC;&#x2122;s can become a government-controlled model for others to follow.

CARBON FOOTPRINT

Carbon dioxide (CO2) while not regulated as an air pollutant is the transportation sectorâ&#x20AC;&#x2122;s primary contribution to climate change. It is essentially proportional to fuel consumption. (United States Environment Protection Agency, 2008) Globally, the road transport sector is responsible for 74% of global CO2 emissions. (Statistics Canada) According to the Canadaâ&#x20AC;&#x2122;s Emissions Trends report, greenhouse gases emissions by transportation sector in 2011 was equal to 170Mt, which includes passenger, freight, and off-road emissions. That represents 24% of overall greenhouse gases. Passenger transport (cars, trucks motorcycles) is projected to emit 90Mt CO2 in 2020, while freight transport is 61. The challenge is to decrease those numbers. Since the retail and food distribution makes up the biggest part of transportation (15-20% according to Grain-international non-profit research foundation), then it should be affected first. Last-mile - that is the final link in the supply chain in the food distribution system - is the key variable and researched part of a larger logistics system.

Focusing on the consumers doing their grocery shopping I studied research papers and trend reports, to know the context and content for outlining the details in my proposal. The next paragraphs are the results of the discussed savings coming along with the proposal. There are number of factors that influence the rate at which any vehicle emits air pollutants. 87

Some of the most important are: vehicle type/ size, vehicle age and accumulated mileage, fuel used, maintenance and more. To estimate the average emission rate of carbon dioxide, and calculate the carbon footprint of a vehicle I picked the average numbers I collected through my research based on American, European, and Canadian studies.

CARBON FOOTPRINT

GROCERY TRIPS A grocery trip can be divided into four different categories: stock-up trips, quick trip, emergency, and personal care, in which case the quick trips stand as more than a half of the final outcome. Studies have shown that those numbers vary based on the region and province. For the purpose of the report I am using the average number to help with the calculations. Therefore, an estimate of 135 grocery trips is done annually per household. (based on Environics Consumer Insights and statista.com) Each trip, however, is a different distance. Another average was taken for that calculation respecting different types of grocery trips. A quick trip means 2km, a stock-up one, 3.5km. Those number were multiplied by the average amount of times consumers shop for those reasons, a quick trip 75 and stock-up 35. Another 25 was added extra for personal care and emergency trip (based on Masterindex report, 2008). The following calculations are the results:

Quick Trip (QT) = 2k * 75 = 150k *2 = 300k/y Stock-up Trip (ST) = 3.5k * 35 = 122.5k *2=245k/y Extras= 2.5k *25 = 62.5k *2 = 125k/y Total ==670k/y === 416miles/y Therefore, an estimate of 416 miles is spent for grocery shopping trip per household. An estimate of 400gCO2 is an average number for a medium-size car carbon footprint per mile (DEFRA car emission factors) 416miles * 400gCO2 = 166,400gCO2 = 166kgCO2 Therefore, an estimate of 166kg of carbon is produced each year by an average vehicle. Now it can be easily calculated that if annual grocery trips stand for 166kg of CO2, each trip creates 1.23kg. 88

CARBON FOOTPRINT

LOBLAWS IMPACT Loblaw companies owns 1142 stores in Canada. Supposing each store carries 1000 transactions every day, and each person represents calculations presented above it turns out that 411,120,000 transactions are proceeded each year. 1142 * 1000 = 1142000 * 360 days a year = 411,120,000 These numbers were then calculated for the carbon offprint with the following results: 411,120,00 Customer Transactions (CT) * 166kgCO2 = 68,245,920,000 kgCO2 annual total 411,120,000 CT * 1.23kgCO2 (1 trip) = 505,677,600 kgCO2 per capita. Now imagine no one drives to stores anymore. The numbers were used for urban areas. Now, if those were increased for suburban and rural ones, the savings would be even more dramatic. In general we think of grocery delivery as benefiting municipal spaces, but yet we have to unlearn taking into consideration only the friendly and familiar. Even bigger potential to offset the greenhouse gas emission is actually in rural areas. 89

CARBON FOOTPRINT

INGROCER+ FLEET The comparison to obtain the real values also needs a calculation of a trip done by a delivery van. If the delivery service serves a proximity-assigned set of customers, savings can mean even 80 to 90, compared with 17%-75% reductions when customers are randomly assigned (E. Wygonik and A. Goodchild for Transportation Research Forum). To give numbers to the discussed impacts I calculated how a delivery van facilitates the orders. Since Loblaws365 is a partnership between Canada Post and Loblaws, using the current fleet for mail distribution can also facilitate the grocery orders for delivery. Canada Post fleet in more than 50% is made up of Ford Transit Connects (a deal announced in 2010 to modernise the company). (autofocus.ca) They have over 11,000 cars in use. The rest of the mail is majorly carried by Grumman LLV. Compared to the old Grumman LLVs, the new Transit Connects get about 37% better fuel economy (22 MPG in the city, 25 MPG on the highway) (treehugger.com) They are also testing hybrid and e-vehicles in urban centres with lots of stop-and-go. Approximately 21 Million litres of fuel are used in moving mail around the country, covering 72 million kilometres every year. (autofocus.ca) Those are big numbers. And if a grocery delivery can be fed into those to get dropped with the mail, it enables dramatic reductions in operating costs and carbon emission.

Freight in this case was calculated based on two different scenarios based on the CP fleet: one for Ford Transit Connects, and one for Grumman LLV. Both of those are light good vehicles (vans up to 3.5 tonnes). I am taking an average of 120 deliveries/drops per 50 miles. Commercialfleet.org gives an average of 200gCO2/km for a Ford car (which translates to 322gCO2/mile). If the number is multiplied by the given distance - 50 miles - it results in 16100gCO2 or 16kgCO2 (fleetnews.co.uk calculates the average for 19kg). This now can be divided by the number of deliveries - 120 - with the final of 133gCO2 per delivery. Respectively, Grumman produces 545gCO2/km (877gCO2/ mile). This is not a modern car, and many sources claim its old technology and therefore bad impact due to a high carbon emission. It produces 44kgCO2 per 50 miles and makes up 367g of CO2 per a drop (thatâ&#x20AC;&#x2122;s a third of what a Ford car produces). Once again, an average individual grocery shopping trip is 1,22kg. The numbers speak for themselves. Thatâ&#x20AC;&#x2122;s the precisely calculated proof of concept. *Note: All calculations here are done with the help of sunearthtools.com

STRATEGY

STRATEGY The following unit discusses the execution of the service and lastmile appearance. Experience design played major role in carrying out the solutions in terms of friendly purchasing, and it determined the important infromation and touchpoints to be addressed for the end-user. Going seamleslly with technology and information design, Loblaws365 strategically enriches daily living, helps local communities and artists through taking part in the venture, brings easiness to grocery shopping, and simplifies decision processes.

STRATEGY

PURCHASE PROPOSAL Powered by the clients needs and adapting to modern lifestyle, Loblaws365 offers two ways of making purchases. The users have the option of building their own box with articles they pick and browse for with the selected tool (website or app), or using pre-arranged and suggested boxes which are individually curated and improved upon use of the service. The essential advantage of the latter is that the platform learns the user and adapts to his lifestyle, with the integral part being the stimulation and development of a new one. A lifestyle, for a better planet and community. Users can also create their own lists with favourite items, for an easier process of purchase each time they plan to use the service - saving time and adding convenience.

STRATEGY

CPG options

In this unit I am discussing the consumer packaged goods categories (see on the right), according to which I carried out the strategy for the box organization and identification. I also outlined below possible scenarios of curated boxes according to each category. In the future, that scheme can help organizing the manufacturers for speeding up the process of delivery and even facilitating even bigger changes within the system of distribution.

diet preference

occasion

vegetarian vegan high carb kosher gluten-free diabetes high fiber etc.

start purely ethnic mashup cozy get together family dinner holidays (seasonal) sweet afternoon lunchbox the lab (try whatâ&#x20AC;&#x2122;s not in store yet) etc. 94

person

beaut itâ&#x20AC;&#x2122;s a ladi groomingbaby et

STRATEGY

MAIN CATEGORIES

beauty & grooming - cosmetics, make-up, deodorants, hair, shavers

household care [fabric and home care] - dish soaps, laundry detergents, paper towels, toilet paper, air fresheners, dust collectors, surface cleaners

food & drink

nal care

tify me ies world -done-right y care tc.

extras

cleaning

surprise me learn how to cook w/ #365 pick-me-up etc.

weekend clean-up bathroom updo all-I-need monthly refill etc.

STRATEGY

LOBLAWS GOES LOCAL With the facilitation of the lockers, they are a great, blank canvas of metal to be painted on. Supporting each local community or neighbourhood and creative minds, Loblaws365 features partnership with artists to produce works-of-art unique for each location of the locker placement, and unique to the artistâ&#x20AC;&#x2122;s style and mission statement. Graffiti artists are invited to take part in this collective technology-turned-into-art installation property. Spreading recognition and adding a humane touch to otherwise only branded lockers, is a humble bow towards the visionary and unique individuals.

STRATEGY

PACKAGING CONCEPT Drawing from the main component of sustainability, Loblaws365 is a carrier of creating a conscious market and ecosystem. Currently, Canadians use 2.86 billion plastic bags annually. That is the reasoning behind introducing new packaging options for the delivery. Looking at different types of containers, and the negative footprint of plastic and other non-sustainable material options, the service is using only biodegradable materials for distributing the goods. The clients get their delivery with the final choice being up to them. Each customer can choose between the preference of picking up the delivered goods in The Box by itself or by using a cart already conveniently placed in the locker for each person. The cart then has to be returned to the locker within a certain time period. Since the lockers are communal and each specific community is sharing the property, it is each customerâ&#x20AC;&#x2122;s obligation to fulfill the rights and responsibilities coming along with the usage of the service and cooperate for the overall good and easiness to benefit everyone.

STRATEGY

THE BOX A cardboard box that comes into the locker. The size/weight may vary as well as the amount of boxes, based on the purchased merchandise made by a customer. Each box has a sticker placed on the side for easy display of information. The sticker features such information as: the address of the drop-off location, list of the items ordered by a customer, how much the total weight is, who packaged the box, how much carbon was saved thanks to this method of delivery.

THE CART A cart is conveniently placed in each locker. It is up to a customer whether he decides to use it or not.

STRATEGY

meetme@

This concept features a phrase that is used once a userâ&#x20AC;&#x2122;s order is completed, and is re-sent to him when it has been delivered (e.g X just made an order and got an e-mail receipt restating the location for a pickup with a line meetme@AngusGlen. The moment the purchase made it to the box, X gets a text message with the same hashtag as a reminder for collecting the goods). This feature adds the friendly touch to the layer of building the relationship with Loblaws. It informs the customer and is close with him because of the informing nature. Sustaining the always basic human need of security and sociable aspect. 100

STRATEGY

MOBILITY OF LOCKERS The lockers are chosen and assigned randomly, although within the moment of delivery and putting the ordered content inside the locker, it gets an assigned code, that lets the user get to his purchase once he inputs the numbers into the machine (terminal). Each module of the locker can be removed or added to a new location based on the demand within a certain neighbourhood.

101

STRATEGY

RATINGS SYSTEM It’s a proposal featuring new system of rating food based on new, more specific and sensorial categories. Seeing many flaws in the basic star system (on a scale from 1 to 5), I developed a new form of giving feedback on each specific item based on one’s opinion. It gives more opportunity to look into products, it gives more information about them, it distinguishes and highlights things that are otherwise overlooked. It also categorizes the users based on their profile so it’s easier for others to find items that fit their search category. Using algorithms based off on that system, it will be possible to curate more personalized, specific, and curated experiences that will leave people happy and satisfied with their choices.

102

STRATEGY

BY PRODUCER

BY USERS

BY TASTE (SOMATOSENSORY)

BY SENSORIAL EXPERIENCES

salty

happiness

sweet

nostalgia

bitter

freshness

pungent

softness

umami

crispiness

sour

dryness

astringent

103

STRATEGY

STAKEHOLDERS It is within the projectâ&#x20AC;&#x2122;s premise to include the government in the whole development process of Loblaws365. Playing a role of a main mediator and owner of the whole system, it is an opportunity to regulate the system and support a big change on the market and economy model. If applied and categorized by law, Loblaws would become a role model for other retailers to follow, and pioneer the partnership with biggest distributor of goods in the country for a global change. There is more restrictions each year within the carbon emission, adapting the proposed system, the country can bring major reductions of those numbers and trigger changes on international scale. Making people adapt to those changes might take time, but in the end a new generation, which went through unlearning process, can be raised. Government has the power to regulate, standardize, and organize the systems with its laws and policies. The retail industry, being the most responsible for greenhouse gas emission, needs those systems regulations the most. Thatâ&#x20AC;&#x2122;s why Loblaws365 was carried out and so precisely discussed with every and each component included in the system. Making small adjustments on a national scale will change the digital and market landscape in a holistic way.

104

STRATEGY

supply distributor + creator + broker + landlord

Manufacturer Consumer Packaged Goods Supplier e.g. KRAFT, Nestle, P&G

Loblaws/PC Distribution Center End-user

property broker + landlord

distribution broker + landlord Transporter

Maintenance

Canada Post Fleet

Astral Media

Loblaws Fleet

Government

105

STRATEGY

PERSONAS Based on analysis and research of Loblawsâ&#x20AC;&#x2122; customers, I clustered them into certain groups for easier navigation and distilled the information to identify the groups I should be focusing on. A case study based on the current service Loblaws provides, Click and Collect, shows that the most enthusiastic users are primarily busy urban professionals, and parentsparticularly moms- who donâ&#x20AC;&#x2122;t want to drag their kids through a store. (marketingmag.ca) The personas are as follows: parents, students, no-car household, elderly, online-shopping enthusiasts, middle- and high-class.

106

STRATEGY

End-user No-car household Online shopping enthusiast Middle- and high- class Students & young professionals Parents Elderly

107

06 112

TOOLS BRANDING

114

PACKAGING

116

APP

108

109

MOODBOARDS

110

111

BRANDING

The logo symbol comes from the representation of the number 365. It is based on the numeric keypad with selected numbers accrodingly and its design is inspired by a map of a city based on a grid. The resulting figure also shows a locker system used for the service, hence making a reference to the company's subject matter.

The next page displays a colour system carried out for system logistics, categorization of CPGs, and User Experience. Each category of goods got assigned a colour to bring easiness into segragation and flow in the app.

112

BRANDING

PEONY PINK BEAUTY & WELLNESS

POOL BLUE HEALTH & WELLNESS

CMYK 1 | 97 | 2 | 0

CMYK 54 | 0 | 12 | 0

RGB 235 | 29 | 139

RGB 105 | 203 | 222

Optimized for the modern

Inspired by the abstracts and

approach to the category,

stimulants of calmness, sky

pink stimulates a deep sense

and water are the main forces

of blending the genders and

behind this colour.

manifested beauty. SUPER LEMON HOUSEHOLD CARE

KUMQUAT FOOD & DRINK

CMYK 14 | 0 | 100 | 0

CMYK 0 | 28 | 92 | 0

RGB 229 | 229 | 22

RGB 254 | 189 | 44

Drawing from the olfactory

Representing the optimism

systems, yellow creates the

and happiness, this bold colour

sensation of freshness, energy,

encompasses all the flavours of

and cheerfulness.

a vibrant diet. 113

PACKAGING

PACKAGING Each purchase that is delivered to a locker comes in a cardboard box which has a printed sticker on top informing the delivery man about the address of a drop-off. Apart from that, the end-user can see on a sticker what and how many items were ordered (just to see if itâ&#x20AC;&#x2122;s correct with the initial order), as well as the amount of carbon dioxide saved by using InGrocer+ service. Last information is the name of a person who packaged the box. In the box, one can find a small card thanking for using the service and making it evident. once again, how much CO2 was saved with this delivery.

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PACKAGING

Address

Joe Black 223-100 McCaul M1W 1R1 Toronto

No. of items 12

Details of the order 115

Items in the box

APP

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APP

MAIN NAVIGATION

SETTINGS SET TIN GS

LOG OU OUTT LOG

MENU VARIABLES

TRANSACTIONS

HISTORY

SPENDINGS

PREFERENCES

ACCOUNT

LISTS

FAVOURITES

POPULAR

DISCOVER

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APP

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APP

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APP

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APP

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FUTURE

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FUTURE

future of loblaws Essentially, the embodiment and implementation of that proposal cannot be done entirely if bigger circumstances are not made. My proposal will not change the landscape and environment within a week. Rather than that, InGrocer+ by Loblaws365 is a delivery service that optimizes the most of the stock-up and quick trips and helps with managing the lifestyle on a daily basis by mindful planning ahead, with the advantage of reducing greenhouse gases emission with each individual trip eliminated. It might not completely eliminate grocery shopping trips, but it will definitely minimize and reduce them to a great level. Hence, the carbon footprint drastically decreases. Even if only 10% of the current transactions were fulfilled by InGrocer+, it would mean 6,824,592,000kgCO2 of savings.

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FUTURE

The proposal can be extended and designed around the environmental issues, to bring even more value for the global future. My priority is to focus on positive freedom in the form of resources, services, and properties. I am proposing a government-regulated distribution system and redesign of the grocery store. For Loblaw Companies, it will mean to reorganize the current 1142 stores. This bring a fundamentally new approach to living: including a balance in the environment, raising new generation on a new ground, and catalyzing effective way of unlearning for the current users. I included a lot of objectives, norms, and approaches todayâ&#x20AC;&#x2122;s clientele voices, to develop this new story ensuring every need would be fulfilled. People still have close relationship with their food (especially fresh produce and meat) and prefer to choose which apples or squash or peppers to purchase. They donâ&#x20AC;&#x2122;t like for someone else to choose their food for them. Following users wants and needs, the future store will facilitate only the fresh produce for an easy and free-for-choice pick-up, frozen and dairy section to make sure everything is kept fresh at all times, and alcohol beverages for the convenience. All the packaged goods will no longer have a physical presence, therefore, a new, redesigned concept for a grocery store is the future phase of the project.

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AFTERWORD

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AFTERWORD

CONCLUSION

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AFTERWORD

Loblaws365 is a revolutionary lifestyle platform utilizing multiple digital tools for the users, improving day to day living. Looking at the behaviours of current clientele and modern generation it meets its expectations by carrying out simple daily solutions in the realm of lifestyle optimization. Main branch, InGrocer+, is a delivery service of household staples and consumer packaged goods, executed by partnership with Canada Post. By expanding its resources and impact, Loblaws can stimulate positive change on a global scale while bringing more convenience to its clients. The opportunity is to enter the new economy model and regulate the current system which is detrimental to the whole global village community. By developing a new strategically designed and future-oriented form of daily interactions, a big transformation on many dimensions can be triggered and facilitated. We are faced by many challenges daily. Taking one step at a time moves us closer to a better tomorrow, more societal comfort, new construction of each day.

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AFTERWORD

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AFTERWORD

ACKNOWLEDGMENTS For all the love, support, inspiration, brain-picking, help, decision making processes, endless discussions about dying computers, multitude of snapchats with even more options to choose from, sushi nights, DIZI, pilates classes, and more.. A BIG THANK YOU to: Alexander Manu + OCADU Faculty + ID101 cohort

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THANK YOU -