Table of Contents Sensemaking Areas of Exploration Appendix
Sensemaking
Our Team America Giron
Claudia Lewis
Carmen Valdés
Clare Madden
Cindy Peña
Shelby Packer
Divya Harpalani
Matina Moreira
Vybhav Kaushik
Rania Said Abdalla
Lauren Stobierski
Paul Benson
Shza Alashi
Sila Eser
Sowmya Chakravarthula
Michelle Schuppisser
Marisa Morán Jahn
Sukalp Bhatija
Hannaford The Hannaford brothers began selling produce in Portland, Maine, in 1883. They understood what their customers cared about most – family, community, quality, and value – core values that still resonate. Today, Hannaford lives those values in more than 180 stores with 26,000 associates, firmly rooted in the Northeast.
Design Challenge How can we re-think the grocery experience — from growing produce to food consumption — to reinforce ecological and social sustainability, locally-grown goods, social equity, and secure supply chains?
We Gained Understanding
We Gained Empathy Research and Data on What do Customers Expect?
FLEXIBILITY
COMMUNICATION
FRESH & LOCAL
Customers want to choose when and how they get their groceries.
Timely, accurate, and helpful
Sustainable & Ethical, Organic, Environmentally friendly, local suppliers
80% more likely buy: Same day delivery Delivery to school or office In-store, curbside, drive-through pickup
-
21% buy more fresh perishable items
Reshaping Grocery Supply Chains, Kaizen Institute
https://uk.kaizen.com/blog/post/2021/01/05/reshaping-grocery-supply-chains-uk.html
We Ran Analyses RETURN ON INVESTMENT - Yr 1 Grab-n-Go
Vend Spot
Hanna Hotspot
Expenses
RnD Meal Kit Supplies - n/a Sustainable Packaging - PartnerShip $10,000 App Development - $60k - $100k
RnD Vending Machines (6) @ $4899.00 Infrastructure = $313 per machine
RnD Construction - $1000 per person on sight ~ $50,000 for 50 people Equipment - grill, bench, supplies $1500 Concession Stand - $20,000
Estimated total expenses
$150,000
$31,272
$76,500
Revenue
Meal Kits - $10 or $20 - per box
Vending Machine - 300 items average cost $1.50 = $450
Concession Stand Juice - average cost $4.50 per item.
Breakeven
$10x + $20y = $150,000 X = 10,000 kits Y = 2,500 kits
$1.50x = $31,272 X = 20,848 items
$4.50x = $76,500 X = 17,000 items
Using a Variety of Tools PHASE 1 Tools
PHASE 2 Tools
PHASE 3 Tools
PHASE 4 Tools
PHASE 5 Tools
Team Formation
Culture Building
Research
Sensory Ethnography
Creating Personas
Observations
Analysis & Synthesis
Identifying Insights
Early Iteration
Napkin Sketching
Social Prototyping
Paper Prototyping
Pivoting
Validating
Brainstorming
Iterating
Journey Mapping
Creative Workshops
Position Matrix
Stakeholder Assessment
Business Analysis
Paper Prototypes
Storytelling Pilot development
Web Tests
Selling Ideas MVP
UX testing live users
Business Model Testing
Understanding the Audience Pitch Deck
Documentation
SWOT / PEST
Areas of Exploration
Retail-tainment: Challenge How might Hannaford appeal to the more than 75% of millennials who prefer to spend their money on a memorable experience.
Retail-tainment: Solution Direction Of Shopping
Fruit Juice
Aisle End
Meat Counter Music
Cafe
+ Checkout Area Milk, eggs and bread Sales Signs Food Samples
Shopping Cart
Fresh Produce Fitness centre
The Hannaford Retailtainment Toolkit
Ski In & Ski Out: Challenge How might Hannaford better serve fast & fresh customers who visit recreational ski resorts like those near Burlington, Vermont?
Ski In & Ski Out: Solutions
Base Grocery Store
Fast & Fresh Ski Stops
Ski Cats
Mt. Katahdin: Challenge How might Hannaford offer healthy & fresh food choices for customer segments visiting Mt. Katahdin?
Mt. Katahdin: Solutions
Hannaford Grab ‘n Go
Hannaford Vend-Stops
Hannaford Hotspots
Millinocket: Challenge How might Hannaford support local communities like Millinocket, Maine?
Millinocket: Solutions
JOBS
The Hannaford Penobscot Street Marketplace
Hannaford’s Strong Jobs Incubator
Thank You
Appendix
Behavioral Experience & Economics on Retail-tainment
Findings Grocery store features most valued by consumers:
87 %
Price
81%
Overall Value
Quality Of Fresh Produce Top ten grocery store attributes that consumers value as most important in the United States in 2017, Statista. 2020 https://www.statista.com/statistics/805555/grocery-store-attributes-that-consumers-value-as-most-important-in-the-us/
Research and Data on
What do Customers Expect?
FLEXIBILITY
COMMUNICATION
FRESH & LOCAL
Customers want to choose when and how they get their groceries.
Timely, accurate, and helpful
Sustainable & Ethical, Organic, Environmentally friendly, local suppliers
80% more likely buy: Same day delivery Delivery to school or office In-store, curbside, drive-through pickup
-
21% buy more fresh perishable items
Reshaping Grocery Supply Chains, Kaizen Institute
https://uk.kaizen.com/blog/post/2021/01/05/reshaping-grocery-supply-chains-uk.html
Findings:
More than 75% of millennials prefer to spend their money on a memorable experience All ages are ideal audiences for in-store and online retailtainment experiences
Community
Themed Restaurants
Relaxation
Experiential Retail Experiences
Bike Rides
87 % Spend money on “experiences” over products
Escape Fun
Findings:
What is retailtainment? Positive Store Perceptions
Coined by George Ritzer in 1999.
CONSUMER-ENGAGED ‘RETAIL-TAINMENT’
Sound + lightening Ambiance, Relaxing or Engaging Interior layout
Store Loyalty Emotion and activity
Offering:
Activity Culture Map Food/kitchen/bar
Gift Cards
Ambience Hanna market
Rewards
Points
Cluster free spaces Meal Kits
shopping Clear Signages
Culture
Healthy living
Recipe suggestions
Partnerships
Sustainability Digital Apps
Fast & Fresh Zero Waste Packaging
Social Cause contribution
Virtual Tour
Customised meal planner
Sip and Shop Meal tasting
Gyms Digital Mapping of products
Customer’s Lifestyle Highly educated High income Single Married Healthy Wellness-Obsessed
The empathy map:
Customer Journey WHAT DOES SHE HEAR? Hears nice music, while looking at the health, fast, & fresh section
WHAT DOES SHE SEE? A place that offer healthy and organic choices
WHAT IS THE CUSTOMER’S PAIN? Biggest frustration is not finding a nice place to try out the healthy food options while working or relaxing on a weekend or after work, or even after working out!
WHAT DOES SHE SAY AND DO? Her attitude is positive as she she looks for the ingredients, quality, and decides to try out the products
WHAT DOES SHE REALLY THINK AND FEEL? She feels motivated and encouraged to try our the fast and fresh products
WHAT DOES THE CUSTOMER GAIN? She wants to eat a healthy meal while cooling down and drinking a healthy juice or cup of coffee on a weekend or after work while texting or using her phone, or even being on a casual date.
Values Matrix Convenience Fast Fresh Affordability Healthy Location Hanna Happy Hour Hannaford Drive-In
✔ ✔
✔
Customer Product Atmosphere service assortment ✔
✔
✔
✔
✔
✔
Juice Bar Fast & Fresh + Fitness Learn and Grow Garden Multimedia Space
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
Hanna Cafe Cooking with Hannaford
✔
✔
✔
✔
✔
✔ ✔
✔
✔
✔
✔
✔
✔
✔
✔
✔
Variety Quality
✔
✔
✔
✔
✔
✔
✔
✔ ✔
✔
✔
✔
✔
✔
✔
Proposed Offerings for Hannaford
Matrix Free space Hanna Happy Hour Hannaford Drive-In Juice Bar
Nutritionist / Dietitian
Environmentally conscious community
Parking Lot
App/Website
Hannaford To Go
✔
✔ ✔
✔
Fast & Fresh + Fitness
✔
✔
✔
✔
✔
✔
✔
Learn and Grown Garden Multimedia Space
✔
Hanna Cafe
✔
Cooking with Hannaford
✔
Hannaford Chef's Table
✔
✔ ✔
✔
✔ ✔
✔ ✔ ✔
✔ ✔
✔
✔
Opportunity Matrix HANNA MARKET Celebration of food, Dine in , Cafe, Kitchen & Bar
More expensive FAST & FRESH FITNESS
HANNA MARKET
Quick Implementation COOKING WITH HANNAFORD HANNAFORD DRIVE INT
FAST & FRESH FITNESS Accommodating fitness space inside
HANNAFORD DRIVE IN
COOKING WITH HANNAFORD
Movies+ food pop ups in parking lot
Partnering with chefs where they teach recipes using hannaford products
Retail-tainment: Hanna Cafe, Kitchen, & Juice Bar
Porter’s 5 Forces on Retail-tainment:
Cafe, Kitchen, & Juice Bar
Supplier power
So many suppliers to Hannaford to deliver fast and fresh products Barrier to Entry
High entry barrier market due to the following: Brand & Customer loyalty to Hannaford Extensive capital to re-shape store layout to add services Crowded market segment
Substitutes
INDUSTRY COMPETITION IS LOW AT THIS POINT
Buyers Power Buyers have high bargaining power
Convenience Stores in Albany, Ny: Wholefoods Local juice bar and coffee shops: Healthy on Lark Raw Professor Java's Coffee Sanctuary Ritual 518 Uncommon Grounds Graham’s Coffee Parlor BARE Blends
SWOT:
Cafe, Kitchen, & Juice Bar STRENGTHS:
WEAKNESSES:
Brings crowds and people Promotes Fast & Fresh products Provides ambiance Creates a cult
Space Staff needed Facilities Costs High Maintenance
SWOT OPPORTUNITIES:
Brings in customers Offers marketing opportunities Expansion regional wide
THREATS:
Finance Electricity Energy consumption
The empathy map:
Cafe, Kitchen, & Juice Bar (Interactive Store Design)
WHAT DOES SHE THINK AND FEEL?
WHAT DOES SHE HEAR?
Encouraged Positive Excited Happy ---------Brand Loyalty
WHAT DOES SHE SEE?
WHAT DOES SHE SAY AND DO? Taste. Smell. Sound. Sight. Touch.
PAIN
Sensory overload. Crowd.
GAIN
Wants + Needs , Brand Loyalty Success for Fast & Fresh
Customer’s Lifestyle Highly educated High income Single Married Healthy Wellness-Obsessed
High Quality + Affordable
Relaxation Work Space Escape Interaction
Cozy & active environment
Lunch/Dinner date at Hanna Cafe
Ideal place to visit after working out
Relaxation, ideal for conversation, healthy options Modern, Cozy & intimate seating area, wine, coffee, music
Activities on sites Healthy food options
Hannaford Retailtainment
Cafe Kitchen Juice Bar
Matrix Floor Plan
Retailtainment Toolkit
Retailtainment implementation Direction Of Shopping
Fruit Juice
Meat Counter
Aisle End
+ Music
Cafe
+ Checkout Area Milk, eggs and bread Fitness centre
Sales Signs Food Samples
Shopping Cart
Fresh Produce
Next steps 1
2
Mock-ups
Test
3 Validate
Ski in & Ski Out
Ski In Ski Out
Carmen, Shelby, Claudia, Michelle, Sila, Lauren
Challenge In a world with greater focus on social value, how can we re-think the experience of consuming groceries? What are opportunities and touchpoints for communicating social values? And if value-driven purchases are key to building brand loyalty, how we deliver those experiences?
Burlington, Vt
Stowe, Vt
Current Situation
Problems
FOOD
CONVENIENCE
SUSTAINABILITY
Unhealthy food options on the mountain.
Most people don’t like going to the supermarket after a long day of ski.
Climate change impact on ski resorts.
Solutions
●
Fast & Fresh Stop
●
Fast & Fresh Ski Cat
●
Hannaford Grocery Store
Fast & Fresh Ski Stops
FRESH FOOD
SOCIALIZE
REFUEL
Fast & Fresh Ski Cat
Hannaford Grocery Store
Corporate Christine
08:00
09:30
13:00
17:00
Arrival at Stowe, company breakfast at Hannaford
Christine joins a guided ski with a few of her coworkers.
Lunch at Hannaford Fast & Fresh
Company happy hour on patio
Family Cynthia
08:00
09:00
12:00
Arrival to the Stowe
Discovering the “Hannaford Treasure Map”
Having lunch and attending the “Ginger Cookie Challenge” at the Hannaford Fast and Fresh Stops and
16:00 Having a few runs
Graduate Gretchen
08:00
12:00
13:30
Arrival to the Stowe
Go to ski cat for late breakfast/early lunch
Pick up dinner for later
14:00 Head home for a 3 o’clock class
Field Research Mackie, 29 “I love being out on the mountain but I get stressed about cooking dinner later”
Mish, 45 “The grocery stores close to Stowe are so small and often out of stock”
Pam, 54 “I think there would be a huge opportunity to capture active hungry folks after a day well spent on the mt.”
Swot Analysis STRENGTHS ● ● ●
Having Hannaford at the top of the mountain as well as at the bottom. People wanting to eat healthier while skiing. People wanting to have a supermarket available nearby, without having to drive. More convenient way to shop.
WEAKNESSES ● ●
OPPORTUNITIES ● ● ●
Strengthen Hannaford's Brand. Establishing & expanding Hannaford's customer base. The mountain doesn't have fast and fresh options available at the top.
Initial capital investments and maintenance costs. Cost of labour. Marketing and communications challenge. Communicating to the right audience.
THREATS ● ● ●
Policies of getting into the system Already existing competition: supermarkets as well as restaurants in the mountain. Town regulations.
Implementation Matrix scaleable
Base Grocery Store fast
slow
Fast&Fresh Stops
Snowcat
bespoke
Challenges to Opportunities
Ski along with
Design Research & Strategies for Hannaford at Mt. Katahdin
It has inspired hikes, climbs, journal narratives and also a piano sonata
TOURISM FINANCIALS
Overnight Stay 20+ Million people $4.8+ Billion revenue
USER DETAILS
Day Visitors
Overnight Stay
16 Million people $1.4 Billion revenue
20+ Million people $4.8+ Billion revenue
MOUNTAIN PATROL ISSUES
MILLINOCKET
How might Hannaford offer healthy & fresh food choices for customer segments visiting Mt. Katahdin?
SERIOUS HIKER Name: Sophie Williams Age: 34 Occupation: Business Analyst
Motivation: Sophie likes to stay active to maintain a healthy lifestyle. She’s a health freak! She wants to reach the top of Mt. Katahdin by the end of summer this year. She thinks that food has a way of bringing people together.
Location: New York City Status: Single Bio: Sophie is an ambitious worker who loves to hike and trek in her free time. She’s part of many hikers’ groups and takes the wellbeing of her health very seriously.
Frustrations: Sophie struggles to find healthy food that is fresh and stays for long periods of time. Not enough choices She also finds it hard to carry all the food on her hiking adventures
CUSTOMER JOURNEY
I’m really excited to see what Hannaford store has for the hike
Cool, there are many healthy and fresh options
START POINT
I can’t take any of this food with me on the hike Its too heavy, the quantities are too much and the fresh food won’t last till the end of the day :(
DISCOVER
EXPLORE
EXPERIENCE
COMPETITIVE ANALYSIS STORE
Healthy
Travel Friendly
Eco- Friendly
Fresh
SOLUTIONS
Grab ‘n Go
Vend-Stops
Hannaford Hotspots
GRAB ‘N GO MEALS Specialized meal kits
Custom unique creations
Macro oriented and health conscious
Fast & Convenient
Sustainable + Scalable
GRAB ‘N GO MEALS
S Tourists can place order before hand
W Hikers have to carry a meal
Sustainable Packaging Health conscious meals Low weight to carry Close location to Hannaford Store - could use as prep station No competition
Limited to available menu options
O Branding / Awareness Community Building with tourism Bring meal prep services into tourism Scalable
T Fast food options
Product Timeline PHASE 1: a) conduct research & analysis to create meal kit options in accordance with macros b) hire external app development team to upgrade software and prep for new addition PHASE 2: a) create and test menu with subjects b) build hub location for small facility PHASE 3: launch app with new feature and open hub location PHASE 4: Integrate into other hannaford and different locations
P1
P2a
0
.5
P2b
P3
P4
1
1.5
2
VEND-STOP Quick access nutrition for tourists
Landmarks for traveling hikers
Sustainably packaged snacks
Hannaford marketing & branding
VEND-STOP
S Integrate Hannaford with tourism Provide snacks to travelers Low investment cost / maintenance cost Minimal capital inv.
W
O
T
Requires someone to refill Could create increased waste
Branding / Awareness
Weather
Community Service
Equipment Damage
New channel of income
Animal Damage
Weather Not the freshest Infrastructure costs
Product Timeline PHASE 1: conduct research & analysis to create snacks and routes for vending machines PHASE 2: a) purchase vending machines b) place machines at designated locations PHASE 3: launch vending machines with snacks PHASE 4: integrate product into other local areas
P1
0
P2a
P2b
P3
.5
1
P4
1.5
2
HANNAFORD HOTSPOTS
Safe convenient location for hikers to: Find Refreshments / Snacks Make a Pitstop Cook their own meals with facilities
Juice Bar with custom smoothies
Space to build community
HANNAFORD HOTSPOTS
S Providing safe location to rest Providing gear for hikers to cook with Providing area for community building
W
Capacity of people Weather conditions Cooking equipment
O Branding / awareness Community building with tourism Hannaford line of grills
T Weather damage Animal Damage Equipment damage Lack of cleanliness
Product Timeline PHASE 1: a) conduct research & analysis to find best locations to build camps b) purchase necessary equipment PHASE 2: build locations and market integration with community and tourism PHASE 3: launch hannaford hotspots PHASE 4: integrate idea into other local areas
P1
P2
P3
0
.5
1
P4
1.5
2
RETURN ON INVESTMENT - Yr 1 Grab-n-Go
Vend Spot
Hanna Hotspot
Expenses
RnD Meal Kit Supplies - n/a Sustainable Packaging - PartnerShip $10,000 App Development - $60k - $100k
RnD Vending Machines (6) @ $4899.00 Infrastructure = $313 per machine
RnD Construction - $1000 per person on sight ~ $50,000 for 50 people Equipment - grill, bench, supplies $1500 Concession Stand - $20,000
Estimated total expenses
$150,000
$31,272
$76,500
Revenue
Meal Kits - $10 or $20 - per box
Vending Machine - 300 items average cost $1.50 = $450
Concession Stand Juice - average cost $4.50 per item.
Breakeven
$10x + $20y = $150,000 X = 10,000 kits Y = 2,500 kits
$1.50x = $31,272 X = 20,848 items
$4.50x = $76,500 X = 17,000 items
OPPORTUNITY MATRIX SCALABLE Vendspot
Grab ‘n Go
DIFFICULT
EASY
Hannaford Hotspot
BESPOKE
Thank you! Sowmya Chakravarthula sowmya@newschool.edu
Vybhav Kaushik kausv026@newschool.edu
Strong Millinocket Community Plan
How might we help Hannaford strengthen Millinocket’s Community?
HANNAFORD
STRONG COMMUNITY
MILLINOCKET
Our Team Matina Moreira Los Angeles Research & UX
Sukalp Bhatija New York Creator
STRATEGIC DESIGN Paul Benson Brooklyn Environments
Shza Alashi Saudi Arabia Visual
Clare Madden Connecticut Marketing
Hannaford’s Penobscot Street Marketplace THE PROBLEM
Customers’ preferences are changing and trends are shifting. The Millinocket Paper Mill closed, decimating Millinocket’s community & job opportunities.
Hannaford’s Penobscot Street Marketplace
Hannaford’s Penobscot Street Marketplace THE IDEA
Taking inspiration from Burlington, Penobscot Street is slowly transformed into a vibrant new marketplace for Millinocket. Seasonal Events, Food Trucks Hannaford Sponsored Pop-ups A new decentralized Hannaford Marketplace Small business, Government Partnerships Community access to Hannaford’s scale Community access to Hannaford’s supply chain
Hannaford’s Penobscot Street Marketplace THE BENEFITS For Hannaford
Scalable, Flexible Model Local partnerships support new trends & customer demands Storefront Rental properties
Hannaford’s Penobscot Street Marketplace SHORT-TERM VERSION: Hannaford throws an annual community, food festival on Penobscot Street
SHORT-TERM PARTNERSHIPS: Local Farms Local Businesses Millinocket Community
Hannaford’s Penobscot Street Marketplace MEDIUM-TERM VERSION: Storefront short-term rentals Multiple community, food festivals
MEDIUM-TERM PARTNERSHIPS: Blue Hill Farmers Market (Here) Chickadee Compost (Here)
Hannaford’s Penobscot Street Marketplace LONG-TERM VERSION: Purchase of land and buildings Infill developments (Bakery, Butcher, Hannaford Grab n’ go, etc.) Closing of existing store Wholesale LONG-TERM PARTNERSHIPS: Sustainable agriculture programs, University of Maine Cooperative Extension (Here)
Short Term: Penobscot Street Opportunity Penobsc ot Street Study Area
Medium Term: Retail Store Availability 7 Empty Retail Stores & More Underutilized
Long Term: Empty Land Opportunity 40% OF STUDY AREA EMPTY
Hannaford’s Penobscot Street Marketplace
P
Political Reassessment of the rules for the use of public spaces
E
Economic
Economic strengthening of local producers
Local government partnership
Reduce unemployment rates
Labour laws
Strengthen local business
Potential change in legislation
Tourism
S
T
Sociological
Technological
Encouragement of local crafts and art community
Social Media Sharing/ Marketing of event
Incentivize population to use public space for social gatherings
Integration with Hannaford App
Hannaford’s Strong Jobs Incubator The Problem: With Millinocket’s Paper Mill closure, job opportunities have dried up in Millinocket. Steady decreases in population and higher unemployment rates have resulted impacting the community. Hannaford’s activation could strengthen next generation local supply chains.
Hannaford’s Strong Jobs Incubator
Hannaford’s Strong Jobs Incubator THE IDEA
Investment Opportunities Access to Hannaford Supply Chain (And associated cost savings) Strategic Business Partnerships for start-ups in community Business Coaching Jobs Training, Classes Office Space, Workshops, Creator Spaces Production Facilities for Small Businesses
Hannaford’s Strong Jobs Incubator THE BENEFITS For Hannaford
New Revenue Opportunities Shored up long-term partnerships & supply chain Alignment to marketplace trends & customer demands Alignment to Localization Trends Environmental & Social Considerations
Hannaford’s Strong Jobs Incubator SHORT-TERM VERSION: Launch of several virtual initiatives to support jobs in Millinocket & local sourcing partnerships
SHORT-TERM PARTNERSHIPS: Millinocket Schools
Hannaford’s Strong Jobs Incubator MEDIUM-TERM VERSION: Rental of a storefront as a jobs incubator, coworking space MEDIUM-TERM PARTNERSHIPS: Maine’s CEI Small Business Development Organization Maine Small Business Development Centers The Maine Department of Economic and Community Development
Hannaford’s Strong Jobs Incubator JOBS
LONG-TERM VERSION: The old Millinocket Hannaford store is converted into a jobs center LONG-TERM PARTNERSHIPS: University of Maine State of Maine Maine’s Small Business Advocate
Strong Jobs Plan
P
E
S
T
Political
Economic
Sociological
State policy, government stability
Economic growth
Demographic influence in MN
Social Media
Local government partnership
Reduce unemployment rates
Increase self esteem in younger population
Equipped co-working space
Strengthen local business and community
Value the producer
Incentivize to build local businesses in local area
Technological
Hannaford Strong Community Plan JOBS
The Hannaford Penobscot Street Marketplace
Hannaford’s Strong Jobs Incubator