Design Thinking Project in FMCG Domain
The packaging industry, a significant contributor to global plastic pollution, faces increasing pressure to innovate and adopt sustainable practices. Team Epic's recent project, targeting ITC Paperboards and Specialty Paper Division, is a timely response to this challenge. By harnessing the power of design thinking, the team has proposed three innovative solutions aimed at eliminating single-use plastics from ITC's supply chain. This blog delves into the ideation process, the proposed solutions, and the testing methodologies that could potentially revolutionize the way we think about packaging, ensuring a greener and more sustainable tomorrow.
Project courtesy to Jacinth Paul, Amit Mehla and Idrees Husain. This is a combined project by a team of 3 members.
Executive Summary
The purpose of this report is to propose solutions that are feasible, desirable, and viable to ITC Paperboards to eliminate single-use plastics from ITC’s group supply chain by utilizing design thinking methodology. Team Epic members include Amit Mehla, Jacinth Paul, and Idrees Husain and include a team charter to drive towards the solutions. In the report, we apply the design thinking processes including Ideate, Prototype, and Testing on the design brief to come up with three core concept ideas.
In the Ideate phase, we brainstormed to generate multiple ideas and used the SCAMPER tool to view the problem from a different lens. The analysis from the Creative matrix technique provided valuable information from different categories intersection and Dot Voting technique to select top ideas. Based on the team discussion, we recommend three ideas, a plant/paper-based packaging solution, Refill & Reuse stations, and a subscription model to solve the single-use plastic packaging problem statement.
We created a low fidelity prototype for proposed ideas to test and validate the same. We created simple sketches, cardboard designs, and digital designs to illustrate the proposed solution. In order to validate the assumptions and hypotheses needed to be true for the solution to work, we utilize google survey forms, personal interviews to gather feedback from users and made iterative improvements on low-fidelity prototypes. Using the feedback, we derived insights on consumer behavior and preference concerning single-use plastics usage that helped us in validating the ideas.
In the end, we shared recommendations and next steps for converting prototypes into actual products and reaching out to mass user target groups for the adoption of the same.
1. Introduction
ITC Paperboards and Specialty Paper Division (ITC PSPD) is India's leading paper and paperboard company and one of its most eco-friendly and technologically advanced (ITC n.d: ‘About Us’). From cigarette papers and components to FMCG cartons, from electrical insulation papers to Bio-based Barrier Coated Board, from decorative laminate bases to writing and printing papers, ITC services a broad spectrum of industry requirements.
ITC PSPD's product range includes packaging/specialty boards and specialty papers. Under the packaging & specialty category, ITC offers recycled boards, graphic boards, virgin boards, biodegradable barrier coated boards. It supplies wrapping papers (food grade), décor paper, and printing paper made from 100% virgin fibers under the specialty papers category (ITC n.d: ‘Products’).
ITC PSPD strives to be a leading player in pulp, paper, and paperboard business throughout the world through leadership in quality, innovation through research and development, sustainable use of natural resources, and upholding societal values. Several awards given to ITC's Paperboards & Specialty Papers business for quality, environmental management, and product excellence includes “Most Innovative Environmental Project” 2020 and Platinum rating under the alliance for water stewardship standards, 2019
ITC PSPD has developed several products over the years to replace or minimize the use of single-use plastic, such as Filo Pack, FiloServe, and Filo Bev. They have reached the point where they realize the immense value that can be gained from sustainable packaging solutions that eliminate single-use plastics from their supply chain but struggling to figure out a solution that is feasible, sustainable, and viable to the group.
Team Epic is looking to integrate design thinking within ITC PSPD and focus on the human-centered design process to identify the solution to the identified problem. The ITC Group aims to eliminate the use of single-use plastic bags throughout its supply chain in order to create value for its employees, customers, and suppliers. We are looking to provide a solution to the problem with idea generation that will eliminate unnecessary use of single-use plastic and will be eco-friendly with zero contribution to plastic pollution. The proposed solution needs to be self-decomposable/biodegradable and needs to be a viable solution in terms of cost.
In order to solve the problem, we identified, we propose three core ideas that eliminate or minimize single-use plastic in the ITC supply chain. The first concept idea is about a Plant/paper-based packaging solution that is 100% decomposable and has the same durability, ease of use as plastic boxes. The second concept idea talks about eliminating unnecessary plastic by the usage of refill & reuse stations and the third one on using customized shipping directly to consumer homes with minimum packaging. We created low-fidelity prototypes for all three ideas and performed testing to see each feasibility, viability, and desirability as a solution.
2. Ideation Stage
This project utilizes the design thinking ideation methodology to propose a solution to the ITC group that focuses on reducing single-use plastic in packaging. For each proposed idea, testing/experiments were done and the best idea was put forward having feasibility, desirability, and viability criteria.
Ideation Process
During the ideation phase of design thinking, Team Epic members engaged in ideation techniques to generate ideas from the problem statement that we have identified before (Figure 1). Our discussion revolved around several ideas to solve the problem and at the same time meet the expectations of the stakeholders. Our research also considered some important aspects of the pain points of the targeted end-users, such as their contribution to plastic pollution and environmental degradation. We started with a Brainstorming session to jot down a lot of ideas as a team over collaboration tool MURAL and Zoom Meetings. Our initial focus was to put forward as many ideas as possible without considering their feasibility or viability.
SCAMPER technique proved to be very effective and helped us to see the problem from different lenses and improve the ideas identified in the brainstorming session. We saw an opportunity to use solutions to be able to self-decomposable and able to generate energy as alternative usage. Further, we utilize the Creative matrix technique to explore ideas at the intersections of different categories like product design, technology, and public policies/laws.
We identified three core ideas as a result of applying the above tools, and we improved each of them iteratively until the final solution was reached.
Solution Ideation
We devised several ideas, from using eco-friendly paper and plants to not using plastics at all by designing an entirely new model to sell to consumers. We selected the top three ideas that fulfilled stakeholder criteria based on the consensus.
3. Shortlisted Ideas
Out of multiple ideas that were generated during the ideation phase, we collectively decided on the three best ideas using the Dot Voting technique and secondary research on similar solutions adopted by different organizations and countries (Unilever 2021).
Idea 1: Plant/Paper-Based Packaging Solution
Introducing compostable packaging material made from plants. These boxes are suitable for packaging solid as well as liquid materials and are 100% compostable reducing environmental pollution caused by plastic usage. Referring to the design brief requirements captured earlier, this provides a sustainable alternative to replace single-use plastics for the food packaging industry.
Idea 2: Refill & Reuse Stations
Refill & Reuse model allows customers to buy one container and then refill it over and over again. Consumers can refill products like grains, pasta, seeds, washing liquid, detergents, and liquid toiletries into their own reusable bottles/containers. This solution will eliminate excessive and unnecessary plastic packaging. The reduction in single-use plastic also targets the core problem of plastic pollution.
Idea 3: Subscription Model
Idea is to receive bulk orders from households on a weekly, monthly, quarterly basis and bulk delivers all the items in recyclable packaging materials like bagasse, egg sheets, cardboards, etc. The interface between the users and suppliers will be a marketplace mobile app to place orders and track deliveries. The advantage for the user is that he will be able to get wholesale pricing and discounts on bulk. The advantage for the supplier is that he will be able to deliver multiple items at one and engage customers in loyalty programs. There will be a reduction in middlemen and retailers, which can further decrease the pricing.
4. Recommendations
Test Goals
We utilize the value proposition Canvas (Appendix 2) tool to dig deeper into the user’s pains and gains areas. The core job stakeholder includes shopping from the retailer/supermarket for daily need products, purchasing products online. The pains identified with stakeholder includes plastic pollution due to the use of single-use plastic, health issues, and no feasible solution available as an alternative. With the proposed idea, stakeholder gains include no guilty of using plastic which pollutes the environment, no health issues.
We identified the following assumptions and hypotheses (figure) for our idea to work and prepared a priority canvas (figure) to plot them from most critical to least critical. We identify that people willing to bring their own reusable bottle/container is the most critical assumption to be true for idea 3 to work. Another critical assumption/Hypothesis identify was people's willingness in adopting solutions that are eco-friendly, cheap, and easy to use.
4.1 Test Plan for Idea 1: Plant/Paper-based Packaging solution
We created a low-fidelity prototype and used it to solicit feedback from a set of users. Seven participants reviewed the low—fidelity prototype and shared their feedback about the product and its usability. Key themes that emerged from these surveys are described below:
People view the idea of using plant-based packaging material positively and valued the same. They stated that they liked this idea as it is environment friendly and has no health challenges. Participants show eagerness to use it in their daily life if provided as an alternative option.
There were some concerns around the solution's durability and cost. Participants were not sure if it can be used for daily perishable items and if it will be less costly than plastics.
Based on the feedback received from the low-fidelity prototype, we designed a functional product and shared it with users to test its durability. Participants were again asked to share feedback on the same and had an overwhelmingly positive view of the product and its durability.
4.2 Test Plan for Idea 2: Refill & Reuse Stations
To test the Refill & Reuse station idea, the important assumption was that consumers would be willing to carry reusable bottles or boxes into the supermarket or retail shops. We created a test plan to verify this assumption and used personal interviews, surveys with users visiting retail shops to gather feedback. Around 85 % of users’ participants responded positively to the Refill & Reuse station model. Participants said there may be situations where they may want to do an early refill to avoid going out of stock at home and will need additional reusable containers/bottles.
The resulting learning test card provided insights that people are willing to adapt Refill & Reuse stations if provided as an alternative to single-use plastic bottles/containers. This concept helps them to purchase quantity as per need instead of the complete pack.
4.3 Test Plan for Idea 3: Subscription Model
To test for feasibility, desirability, and viability that users will adopt the subscription model that combines all the necessary monthly needs in a single large eco-friendly package.
The online subscription model is tested based on surveys and interviews from multiple participants, where they are given options to buy FMCG products in bulk for a week or a month. Since there is no final product available, user interviews are conducted to understand user purchasing behavior. More than 70% of the respondents have positively opted for the subscription model compared to others that have high usage of single-use plastics in packaging. The only concern raised by them is that they will have to choose within the limited options available in one FMCG company and cannot order products from multiple companies. However, the convenience in ordering, price point, and delivery of recyclable material outweighs the disadvantages. The test is successful and proves that the idea will work (Appendix 7.3c). Once the app is built and distribution channels are in place the model can be tested with real user data.
Next Steps
We verified that all three ideas met all three desirable, viable, and feasible criteria based on the testing results. The next steps will involve converting high-fidelity prototypes to final products with the help of R&D resources.
It is recommended to the ITC group to have these ideas introduced to larger consumer groups by using creative marketing and advertisement campaigns.
Conclusion
Single-use plastics usage in the packaging industry poses threat to the environment globally resulting in plastic pollution. Packaging materials that are self-decomposable, change in the supply chain model, and creative thinking in changing consumer habits to refill & reuse is the need of the hour for a sustainable model. With the usage of plant/paper-based packaging box, it not only reduces plastic pollution but also reduces harmful effects caused due to plastic used in food packaging. Refill & Reuse stations are the packaging-free alternatives for the FMCG industry. This not only reduces the cost of production, processing but increased engagement with consumers.
This Design Thinking Project in FMCG Domain is based on the extensive research, testing, and experiments results, we proposed Refill & Reuse Stations model, Plant/Paper based solution, and subscription model as the most feasible, desirable, and viable solution to ITC Paperboard’s strategic need to eliminate single-use plastic in its global supply chain.
5. Appendices
5.1 Value Proposition Canvas
5.2 Importance Difficulty Canvas
5.3 Test Cards/Learning Cards
5.4 Team Charter
References
Bland, David J.; Osterwalder, Alexander. Testing Business Ideas: A Field Guide for Rapid Experimentation (Strategyzer) (p. 92-93). Wiley
Chapter 9 of Ogilvie, T, & Liedtka, J 2011, Designing for Growth: A Design Thinking Toolkit for Managers, (Page 138).
ITC Paperboards and Speciality paper division (n.d), Products, ITC, accessed 29 January 2022
ITC Paperboards and Speciality paper division (n.d.), About Us, ITC, accessed 25 January 2022
Kelley, T., & Kelley, D. (2012). Reclaim Your Creative Confidence. Harvard Business Review, 90(12), 115-118.
Lewrick, M, Link, P & Leifer, L 2020, 'Prototype to Test', in The Design Thinking Toolbox : A Guide to Mastering the Most Popular and Valuable Innovation Methods, John Wiley & Sons, Incorporated, Newark, UNITED STATES, pp. 199-202.
Mehla A (2021), ‘Approach to Single-use Plastic Ban’, Deakin University
Miro, Design Thinking tools and templates accessed 31 January 2022
Osterwalder, A, Bernarda, G, Pigneur, Y & Smith, A 2014, '3.2 Testing Step-by-Step', in S series (ed.), Value proposition design : how to create products and services customers want, John Wiley & Sons, DEAKIN UNIV LIBRARY's Catalog database, pp. 196-293.
Unilever (2021), Reuse and refill, Unilever, accessed 20 January 2022
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