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REDUCE, RECYCLE, REPLENISH
NTUST MBA Team
Gemita – Ignatius – Isabella – Stephen
Towards Zero Net Impact
Agenda
Agenda
• Focus Issues
• 1st Solution: “Coke Stream”
• 2nd Solution: “Return & Restore”
• Implementation
Issues Coke Stream Return & Restore Implementation
Swire Beverages environment impact
CO2
Greenhouse
Gas
Emission
WaterSolid
Waste
Only 1.3%
from Beverages
Division
A vast 70.5%
from Beverages
Division
1 billion unit cases*
sold in 2013*a unit case = 24 servings
Source: Swire Pacific 2013 Annual Report
Focus issues:
Issues Coke Stream Return & Restore Implementation
The impacts of waste
Environment Public Health
1.Causing air and water
pollution
2.Landfill sites
which can damage the
plants and trees
1.Causing diseases,
e.g. water borne diseases
2.Causing breathing
problems
Issues Coke Stream Return & Restore Implementation
Current sustainability approaches
Packaging design
• Materials: rPET, PlantBottle
• Lightweighting
Educating consumers
to recycle with the
innovative
Reverse Vending Machine
Issues Coke Stream Return & Restore Implementation
But, more needs to be done
China
360 million tons
Hong Kong
1.9 million tons
Taiwan
8.3 million tons
Source: chinadialogue, FEHD-HK, EPA-TW
Annual domestic waste:
Issues Coke Stream Return & Restore Implementation
Swire Beverages water consumption
Beverages
70.5%
Trading &
Industrial
1.3%
Marine
services
0.6%
Property
11.1%
Aviation
16.5%
By divisionWater consumed (cbm thousands)
2013
Source: Swire Pacific 2013 Annual Report
Issues Coke Stream Return & Restore Implementation
Current sustainability approaches
Improving water efficiency Treating wastewater
Regenerating water sources
Treated wastewater is transported
through 2430 m pipeline to Lianhu
Park artificial lake
By using air system to rinse bottle,
epoxy floors, filterbed wash water
recovery, returnable bottle washer,
water use ratio has been decreasing
Source: Swire Pacific 2013 Annual Report
2.87
2.562.33 2.23
1.95 1.9 1.81 1.75 1.74 1.76
-39%
Issues Coke Stream Return & Restore Implementation
Still, more can be done
Drought in China's Gansu Province has left about 7,000 people and 420,000 cattle lacking adequate drinking water
Farmers in China’s Henan Province have been forced to irrigate their fields with wastewater, because groundwater sources have dried up
Source: CRI, Epoch Times
Issues Coke Stream Return & Restore Implementation
Coke Stream: zero waste Coca-ColaNot just an ordinary vending machine
Insert the money
Select the item
Ordinary vending machine: Coke Stream:
Take the bottle/can
Insert the
money
Select the
item
Fill your
bottle
Bring your
own bottle
Issues Coke Stream Return & Restore Implementation
Free extra drinkRewarding consumers for bringing their own bottle
Extra drink for the same price
Persuade consumer to use
personal bottle more often
• Reduce packaging consumption
• Less waste impact
Issues Coke Stream Return & Restore Implementation
Target consumerAiming for consumers in two specific target areas
Universities Residential
buildings
Many universities students have no
problem bringing their own bottles
to campus
Bottles are readily available for
consumers in residential buildings
1
2
Reasons:
Issues Coke Stream Return & Restore Implementation
Benefits of Coke StreamReducing waste, cutting cost
Reduce the use of plastic and aluminum packaging
Core benefits
• Minimize the Post
Consumer Material (PCM)
waste
• Reduce the impact to the
environment
Core benefits
• Lower production cost in
the long run
• Improve profitability
Issues Coke Stream Return & Restore Implementation
Return & Restore campaignEngaging the most significant stakeholder
Consumer
Engagement
Increase people’s awareness
for the environment
Intention to help other
people in need
1
2
Aims:
Issues Coke Stream Return & Restore Implementation
Leverage consumer engagement
Return empty
packaging to RVMs
Earn points
online
Redeem the points:• Reusable tumbler
• Free Coke Stream
Donate for
Coca-Cola’s
charity projects
Encouraging consumers to take part in sustainability goals
Issues Coke Stream Return & Restore Implementation
Collection of recyclable packagingUtilizing Swire’s existing technology
Reverse Vending Machine
Strategic location
• Near to the regular vending machines
• Places where Coke Stream is not viable
Collection method
• Partnership with waste collector/recycler
in target markets
Issues Coke Stream Return & Restore Implementation
Reward points systemGiving incentives to encourage participation
Consumers earn 1 point
for every empty
packaging returned
Points are accumulated
online and manageable
via a smartphone app
35 35
263133
49
32
4447
63
5156
0
10
20
30
40
50
60
70
China Hong Kong Taiwan USA
Smartphone Penetration (%)
2011 2012 2013
Source: Our Mobile Planet
Issues Coke Stream Return & Restore Implementation
Offering flexibility for consumersLinking the incentives to sustainability goals
Redemption Donation
► Redeem the points for gifts ► Donate the points for charity
1.Free Coke Stream (X points)
Persuade consumers to try the
new zero waste Coca-Cola
2.Reusable tumbler (X points)
Further encourage consumers
to try the Coke Stream
Allows consumers to contribute to
Coca-Cola’s charitable water
replenishment projects:
• Irrigation infrastructure in Henan
• Clean water for people in Gansu
Issues Coke Stream Return & Restore Implementation
Consumer awareness
“Consumers are willing to contribute and play a role in companies’ efforts to abate critical environmental issues”
“They want to interact and engage with the brands they buy”
Aiming the consumer behavior trend
American
consumers
Consumers in
Greater China Region
92% U.S. consumers would buy a
product with social and/or
environmental benefit
83% of Chinese consumers try to
buy products made by companies
that do good things for the
environment or community
Source: Cone Communications, Echo Global, KRC Research
Issues Coke Stream Return & Restore Implementation
Twofold benefits of Return & RestoreAddressing both waste and water issues
Encourage consumers
to recycle their waste
Core benefits
• Help Coca-Cola to obtain
more recyclable materials
• Reduce the impact from
waste to the environment
Provide a platform for
consumers to contribute
Core benefits
• Moving consumers to
repeat usage
• Accelerate Coca-Cola’s
charitable water
replenishment projects
Issues Coke Stream Return & Restore Implementation
Criteria to evaluate launch marketWhere to launch the solutions?
Ease of launch Cons. behavior trend Market size
Geographic proximity
Distribution capability
(new Coke Stream)
Partner availability
(collector/recycler)
Use of personal
reusable bottle
Recycling habit
Philanthropic spirit
Existing consumers
Potential new
consumers
FEASIBLE LAUNCH MARKET WITH THE MOST SIGNIFICANT RESULTS
In order of importance
Issues Coke Stream Return & Restore Implementation
Evaluating the launch market
Ease of launch Cons. behavior trend Market size
China
Hong Kong
Taiwan
USA
Where to launch the solutions?
Source: Swire Pacific 2013 Annual Report, Team Analysis
1
1
2
3
Launch
priority
Issues Coke Stream Return & Restore Implementation
Launch of solutions to marketsPhased time launch
SELECTION
CRITERION
Ease of
launch
Consumer
behavior trend
Market
size
Time phases:
Phase 3
Phase 2
Phase 1 Coke Stream
• Universities
• Residential buildings
Return & Restore
• Airports, stations
• Stadium, public places
Locations:
Issues Coke Stream Return & Restore Implementation
Main investmentInvesting for sustainability
Coke Stream: Return & Restore:
RVMsCoke Stream
machine
Distribution App and database
to store the points
Marketing
Issues Coke Stream Return & Restore Implementation
Suggested performance indicatorsMeasuring progress with KPIs
KPI (within 1 year)
Ratio between sales from Coke Stream
and regular vending machines
Reduction in PCMs waste %
%
Coke Stream
Reduction in total production cost
%
Reduction in carbon and water footprint %
Issues Coke Stream Return & Restore Implementation
Suggested performance indicatorsMeasuring progress with KPIs
KPI (within 1 year)
Percentage of sold packaging that are
returned
Accumulated amount from donated
points
%
HK$
Return & Restore
Issues Coke Stream Return & Restore Implementation
Moving forward to sustainability goal
Coke Stream Return & Restore
Reduce the environment
impact from packaging
waste even further
• Recycle more PCM waste
• Replenish water for those
in need
Issues Coke Stream Return & Restore Implementation
Smartphone application
The smartphone app presents a limitless possible uses beyond managing points.
The app can also allow the consumers to:
• Compete with their friends on their recycling points and share their achievements to social media.
• Find the nearest RVM machines.
Achieve maximum engagement and impact
Leveraging the mobile and social trend
Social marketing
Use social media for inviting and encouraging the mass audience to try Coke Stream and participate in Return & Restore campaign
Minimum investment, maximum impact
Sina Weibo
Qzone
Tencent Weibo
Sina Weibo
Plurk
Sina Weibo
PinterestSource: GO-Globe, Business Insider,
Fashionbi, eBizMBA, Alexa
Issues Coke Stream Return & Restore Implementation
Risk mitigationPrepared for unfavorable possibilities
Risk Mitigation
Coke Stream
Poor take-up rate of Coke Stream
by target consumer groupProvide periodical promotions
Unwillingness of partners to take-
in Coke Stream machineGive trial period
Return &
RestoreLow packaging return rate
• Search for next promising
places to put the RVMs
• Registration bonus