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In 2019, GrabFood introduced a feature “plastic cutlery” reduce plastic waste.. GrabFood Sustainable Marketing Issues Restaurant partners responsibility overlooked in plastic waste issu

WESTERN SYDNEY UNIVERSITY

SCHOOL of: Business

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Lecturer or Tutor name: Dr NGUYEN Thi Ngoc Diep

ASSIGNMENT DETAILS

Home campus (where you are enrolled): Vietnam

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1.1 About GrabFood

Acknowledging the importance of delightful meals in enhancing well-being and mental comfort, Grab introduced the GrabFood service to connect customers with local restaurants and eateries nationwide (Grab, n.d.) It has maintained its position as the country's leading food delivery service throughout time and achieved an astonishing 45% market share in 2022 (Nguyen, 2023) Proudly positioned as the swiftest food delivery option, GrabFood prioritizes consumer convenience, offering a user-friendly app that allows effortless ordering with just a few clicks or taps To better satisfy customers' diverse tastes and preferences, GrabFood presents an extensive selection, ranging from local specialities to favourable restaurants, while providing multiple payment methods, including cash on delivery or safe online transactions (GrabFood, n.d.)

1.2 Problem Identification

According to the World Bank (2022), around 44% of plastic waste found in Vietnam comes from takeout food and drinks, which is partly attributed to the extensive growth of food delivery companies Aware of its responsibility, GrabFood has developed many strategies for sustainable marketing, but the results have yet to be considerable In 2019, GrabFood introduced a feature

“plastic cutlery” reduce plastic waste This feature completely removes plastic eating utensils as the default choice Customers now can attach plastic utensils if needed, but they are not

Figure 1: GrabFood’s fixed feature “plastic cutlery”

While GrabFood's strategy may seem promising, problems inevitably arise Using cause- and-effect analysis, we identified the following limitations of GrabFood’s Plastic Cutlery function

GrabFood Sustainable Marketing Issues

Restaurant partners responsibility overlooked in plastic waste issue

"`" Inefficient partner relationship management

The functional value trade-off, desired characteristics of the service

Figure 2: GrabFood Sustainable Marketing Issues

between the defined service standards and the actual performance of the service delivery team,

as outlined in the Gaps Model (Wirtz & Lovelock, 2018) This raises the question: "What if the customer did not ask for it and still received the plastic eating utensils in the order?" Focusing too much on customer choice, GrabFood may have overlooked the restaurant partners’ responsibility of packaging the food conveniently and hygienically, which also contributes to the plastic waste issue Without a proper partner relationship management strategy, ensuring that all restaurant consistently adhere to GrabFood's sustainable practices guidelines would be challenging

On the other hand, GrabFood has been unsuccessful in convincing customers to limit using plastic eating utensils Takeaway food and beverages can be consumed on-site, taken away, or delivered, making eating utensils essential for customer convenience (Law Insider, n.d.) With the new feature aimed at environmental protection while paying a fee equivalent to when including eating utensils, customers receive expressive value but must compromise some convenience, which is a functional value the service offers (Lovelock, Patterson & Wirtz, 2015)

As such, consumers may feel inadequate and limited in using this feature

Design Thinking is an indispensable methodology for generating solutions (Dam, 2022)

In this case, We applied the five-stage design thinking model to find the appropriate way to solve GrabFood's sustainable marketing problem

2.1 Primary Research

We have conducted primary research through an online survey using Google Forms and received 66 respondents, coming to the first stage of the Design Thinking Process, focusing on user-centric research (Dam, 2022)

The result illustrates that responders aged 18-26 generally showed higher interest in the environmental friendliness of Food-Delivery App(s) than the 27-40 age group, proving that the younger generation seems to care more about the ecological issue

Regarding both generations' responses to GrabFood's effort "Eco-Friendly Options" to reduce plastic waste, approximately 43% of responders said that they neither noticed nor used the feature "include/not include plastic cutlery" of this Food-Delivery Platform, which shows that Grab's current method is not effective enough to achieve the firm's target of "zero packaging waste in nature by 2040"

Are you aware of GrabFood's fixed feature to not include plastic cutlery in “Eco-friendly (0 Copy options”? | Bạn có biết về chức năng mặc định không thêm dụng cụ ăn uống nhựa

trong mục “Thân thiện với môi trường” của GrabFood không?

changed it to "include plastic cutlery", it indicates that GrabFood's approach to reduce plastic waste is ineffective, as the survey's data shows that most customers expect to include plastic cutlery in their essentials

Why did you use this feature (change from "Not include cutlery" to "Include cutlery")? | ID Copy

Tại sao bạn sử dụng chức năng này (đổi từ 'không dụng cụ ăn uống nhữa'" thành "Co

dụng cụ ăn uống nhựa”)?

| don't think it affects the environment too much | TéinghT 10 (37%)

nó không ảnh hưởng nhiều đến môi trường °

| still need cutlery for my meals at my workplace| Do tô

van can dụng cụ ăn đề dùng bữa ở nơi học tập/nơi làm 17 (63%)

Furthermore, GrabFood's problem arises from its dependence on customer choice and lack of control over the entire service delivery process Restaurant partners and delivery

highlighted in the app's features (Nhu Quynh, 2023) This disconnect between the app's functionality and the actions taken by stakeholders in the delivery process leads to inconsistencies and unnecessary waste

The combination of these factors demonstrates that: Users demand GrabFood take a more effective and cohesive sustainable approach while maintaining convenience and controlling

3 Define User Personas

A user persona is a fictional profile representing a company's target (Faller, 2019) Based

on information obtained from the primary research’s survey, two personas for two main age groups are built to visualize better the target market of GrabFood

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@ @ @ oS Care about the environment

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Figure 5: User Personas

Despite having never explicitly announced its target customers in Vietnam, the primary users of GrabFood Vietnam consist primarily of Gen Z and Millennials, ranging from 18-34, according to Minh (2023) and Grab (n.d.) Both generations are part of the digitally-driven generation known for their youthful, cool, and pragmatic attitudes While Millennials value time- saving solutions (Page, 2022), Gen Z is accustomed to seamless online experiences (Tracy & Fernanda, 2018) Therefore, they expect brands to be as digitally adept as they are, and they demand the latest technology Additionally, this demographic, especially Gen Z, is financially conscious and always requires received value to be commensurate and reasonable with the money they pay (Tracy & Fernanda, 2018) Our survey shows that the environment is the second most significant factor, following price (with promotion), that matters to this target audience

On the scale from 1 to 5, how do the following factors influence your decision to ID Copy choose Food-Delivery App(s)? | Trén thang điểm từ 1 đến 5, bạn đánh giá mức độ ảnh

hưởng của các yếu tố sau lên quyết định chọn app đặt đồ ăn của bạn như thế nào?

After creating a persona, we have realized that customers' interest in the campaign is limited To gain a more profound insight into their actions and attitudes, we have build 2 empathy maps proving valuable in identifying the underlying conflicts and providing a pathway to effective solutions (Gibbons, 2018)

THINK & FEEL

THINK & FEEL

The empathy maps reveal that apart from a significant number of environmentally conscious individuals, a few do not prioritize environmental issues Across the "hear, see, say, and do" quadrants, most customers follow a similar ordering process on the GrabFood app, regardless of their environmental concerns While the plastic reduction campaign has garnered some customers who opt-out of plastic eating utensils, there is a limit to the number of people participating The "think and feel" quadrant reflects clients' emotional states, where environmentally conscious customers desire to positively impact the environment through their choices but feel inadequate at the expense of convenience (Gibson, 2018) At this point, GrabFood's efforts to engage environmentally conscious customers and shape behaviour

4 Brainstorm Solution

To generate a wide range of ideas, we used the mind-mapping tool to explore diverse possibilities (Plattner, n.d.) Referring to the environmental sustainability portfolio, we have determined that pollution prevention, precisely plastic waste control, and sustainability vision are the most suitable frameworks for GrabFood's implementation It should be noted that the pollution prevention grid focuses on eliminating or minimizing waste before it is generated In contrast, the sustainability vision outlines the necessary evolution of the company's products and services, processes, and policies (Armstrong et al., 2018) Therefore, we decided to generate concepts catering to our partner restaurants and customers since these two groups play crucial roles in the service delivery process and collectively influence plastic waste generation Subsequently, we brainstorm ways to motivate partner restaurants to adopt eco-friendly materials and to influence customers' behavior toward reducing plastic usage

AS a result, we have developed five different solutions to supplement and replace GrabFood's outdated and inefticient plastic waste reduction scheme (see Table B1)

Incentives & marketing ()

enhancement Encourage partner

restaurants to use

eco-friendly materials

Establish strategic partnerships with suppliers providing disposable (2)

environmentally friendly packaging

& eating utensils

including plastic food utensils

on providing additional services and options to support eco-friendly choices As part of this initiative, the "Eco-Friendly Restaurants" feature will be recreated, offering a curated collection of partner restaurants that prioritize using eco-friendly packaging and utensils This will make it easier for customers to choose sustainable dining options

To overcome potential Delivery Gap issues and enhance the solution's effectiveness, we recommend implementing soft service quality measures to align all parties involved in service delivery By collecting customer feedback and ratings on their experiences with "Eco-Friendly Restaurants," GrabFood can monitor partner restaurant performance and incentivize them to adhere to eco-friendly material usage for their positive reputations Furthermore, forming strategic partnerships with environmentally friendly packaging suppliers will ensure the availability and affordability of eco-friendly materials for partner restaurants This collaboration secures a stable customer base for the packaging company It provides partner restaurants in the "Eco-Friendly Restaurants" collection access to eco-friendly packaging and utensils at reduced prices, further

Besides, GrabFood can implement a pricing strategy to regulate customers' behaviour toward plastic use Customers will be charged an additional fee for orders that include plastic eating utensils, with the fee as a donation towards plastic waste treatment This approach creates

a price comparison between eco-friendly restaurants and those still using plastic, shifting customers' demand to establishments that offer reasonable prices while prioritizing sustainable practices In addition, It is essential to organize related promotional events during the initial release of the new category By celebrating sustainability milestones, such as the first 100 customers to place 25 eco-friendly orders, with special rewards, an exclusive set of reusable wooden eating utensils, GrabFood can increase customers’ engagement and possibly manage

5 Develop Lo-Fi Prototype 5.1 Develop and test low-fi prototype

We developed a feature named “Eco-Friendly Restaurants” to orient sustainable practices for the environment Based on the initial prototype, when customers open the GrabFood app, they will see the new function below the advertising section After that, a list of restaurants offering nature-friendly packages will appear when clicking on the new function Besides, the ranking of restaurants will depend on the number of sustainable packages they provide in a specific period

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Figure 9: Old Low-fi Prototype

To gather feedback on our new feature, we surveyed 73 GrabFood users aged 18 to over

45 (see Appendix C)

5.2 Obtain feedback and modify low-fi-prototype

The survey indicates that 71.2% of respondents approved our new "Eco-Friendly Restaurants" feature (see Figure C3), and nearly 80% said they would recommend it (see Figure C7) Nevertheless, more than half of them poorly rated the position of the new function and suggested changing it for convenience (see Figure C9)

Considering the needs and wants of the customer, we modified the low-fidelity prototype

In the new version, the "Eco-Friendly Restaurants" feature will be placed as Figure 10A To ensure that the introduction of the new feature does not affect existing ones, we propose to expand the category section and provide a user guide to customers, catching their attention after the update Moreover, a notification icon would also be attached (as Figure 10B) to highlight the new feature's availability, even when customers are browsing other categories

Figure * Present the new “Eco

Friendly Rest The first row Middle of GrabFood's layout

Figure « Eco-Friendly sie rants will be

Có ized via the notification icon on the top right corner

Figure 10: New Low-fi Prototype

6 Develop And Test Hi-Fi Prototype 6.1 Develop and test hi-fi prototype

Regarding the high-fidelity prototype, the new function will have images of the sustainable box to show our message Besides, the tag “New” will be attached to gain Grabfood users’ attention Furthermore, the Eco-Friendly restaurants will have the “Green Vibe” certification badge

at the right corner of the screen

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