This project was to create a new business proposition based upon a case study for the waste industry. The company pursued was Rumpke Waste Management and the following projects the the business side and all contents that goes into it in order to create a service.

This project describes, in detail, a business venture called "Fresco" for Rumpke Waste Management.

Many aspects were taken into account in order to fully develop and implement these ideas.

The following is information on Rumpke Waste Management as it stands currently, the targeted user segments, the offering and differentiation of the new business venture, followed by the delivery of the product-service system and the performance indicators that reflect this endeavor.

About Rumpke

Rumpke Waste & Recycling began in the first half of the twentieth century when founder William Rumpke was paid for his junkyard services in pigs. Family owned with 75 of their 2,300 employees being part of the Rumpke family, the company is now the 10th largest waste management company in the U.S. bringing in about $500 million a year.

Facts

Waste Industry Facts

In the United States, on average, 14% of waste is organic waste

A U.S. citizens dispose of approximately 1.5lbs of food waste every day. That’s 474lbs a year for the average household

 

About 30% of produce is rejected by supermarkets who refuse to put it on the shelves due to cosmetic standards

 

In the U.S., bins around 50 million tons of electrical waste every year

Waste Industry Trends

Best practices and new technologies are aimed at safety practices

 

Automated collection is expanding

Composting programs will expand CNG technology will grow (compressed natural gas )

 

Methane will be turned into clean renewable electricity

 

Implementation of programs to reach zero waste goals

Municipalities are taking action to cut food and organic waste

 

Bans and fees are being placed on common products ( styrofoam and plastic bags ) Companies are creating more innovative trash and recycling containers

User Research

Homeowners 

   20 individuals 

   Scripted questions 

   In person and over the phone

   Ages between 20 - 55 years old 

Organizations

   1 organization 

   Scripted questions 

   In person 

Insights from Interviews

Most people want to be aware and more eco-friendly but just don't have the resources 

A lot of people choose not to be "green" because it's too much of a hassle 

If you're not passionate about it, it's even harder to change your lifestyle 

If companies provided the tools and informations, then people will be more likely to jump on board 

People do not compost because of lack of knowledge necessarily, but because of lack of space or time 

Some want the end result of compositing such as fertilizer, but aren't willing or are unable to put in the work 

User Archetypes

The Offering

Fresco is a service delivered by Rumpke companioned by a trash can and a cloud-based app.

 

Fresco cans break down compost and produces fertilizer within 24 - 48 hours. In addition, it provides analytics of the user’s organic waste intake directly to the app.

 

Fresco encourages and simplifies the act of a more sustainable lifestyle.

Value Proposition

Growing and improving community through education and tools on proper compost disposal, offering individuals a way of producing their own fertilizer and choosing what happens to it afterwards, while also providing organizations a way to better their identity and encourage relationships within through a communal garden.

Facts

Composting 

To compost is to create the conditions for organic waste—dead plants and food scraps—to decompose and return to the soil

 

Though proportions vary, the general recipe for compost is: Organic matter + water, air, carbon- and nitrogen-rich materials, worms, fungi, aerobic bacteria + time

 

Less waste winds up in landfills

 

Organic matter doesn’t decompose in between matter than is not biodegradable and therefore it creates methane gas which is a methane is a major contributor to climate change

 

It reduces the amount of new pollution

 

Encourages plant growth

Community Garden Benefits

Community gardens build leaders, ownership and relationships

 

Community gardens reduce crime in areas

 

Those that garden eat healthier diets than do non-gardening families

 

Environment - Gardens help reduce the heat-island effect in cities, increase biodiversity, reduce rain runoff, recycle local organic materials and reduce fossil fuel use from food transport

Community gardens increase:

   Education Youth involvement

   Income opportunities

   Property value

   Food production and access

   Mental health Nutritional value

   Exercise and being outdoors

Fresco Offerings

Rumpke’s offering allows customers to be co-designers. Rumpke is selling a composting machine that will breakdown compost into fertilizer, offered to both individuals and organizations. Individuals will have the opportunity to use the fertilizer or give it back to Rumpke. Organizations that purchase Fresco (such as apartment complexes and schools) will work with Rumpke to build a community garden in their area.

Fresco is a smart composting bin that breaks down organic waste and turns it into fertilizer within 24 to 48 hours, while tracking waste produced in weight

The input is waste and the output is fertilizer.

 

Users will be able to:

   Know how much waste they are

            producing

   Be aware of how much of their

            waste is turned into fertilizer

Yard trimmings and small quantities of food scraps can be composted on-site, using Fresco.

Meats, bones and eggshells are not appropriate for on-site composting

Fresco has a companion app that can:

   Store data from trashcan

   Provide tips for composting

   Educate on composting

   Double check what foods

            are compostable

   Request fertilizer pick up

   Request fertilizer bags  

   See where fertilizer is being             used

   Review / feedback channel

Benefits and Incentives of Fresco

Individuals will be able to start composting in a more accessible way as well as be more self aware of their waste intake and production. Fertilizer can be used for personal use or picked up by Rumpke to be used in communal gardens.

Rumpke will become more sustainable, help build community relationships, encourage others to be self aware and increase revenue stream by selling Fresco devices and companion bags.

Companys’ brand will be looked at as more green and they’ll be able to encourage their users to compost and create a community around the new garden that Rumpke will help build.

The city and Rumpke will work side by side finding spaces and lots for future gardens. The more organizations purchase the device, the more community gardens Rumpke will build. The neighborhoods and people of the city will start working together and finding common grounds from gardening and transforming their food from dirt to plate.

Differentiation

Rumpke's New Target Segments

Rumpke is a multi-sided platform business that targets: 

Homeowners 

   In need of waste removed from home

   Need of fertilizer      

   Wanting the opportunity to help others by

         giving back

   A way of making money

Organizations

   Apartment complexes, schools, hospitals

   Educate the members within

   Build a community within Create a sustainable

        company

Desired Position in the Market

Service Offering Maps

Before Fresco

After Fresco

The Service Delivery

Marketing Strategy

Currently, Rumpke collects waste from homes and businesses throughout Ohio, Indiana, West Virginia and Illinois as contracted by the state. Rumpke will begin to target users through psychographic and needs-based segmentation, addressing individuals and companies that strive to be more eco-friendly. Rumpke’s service-focused positioning allows them to compete with other smart waste bins.

Marketing Strategy Goal

Rumpke’s goal is to encourage their users to live a more green lifestyle by building relationships within their community and take advantage of readily available resources.

Stakeholders Map

Business Model Canvas

Individual 

Orginization

Encounters Map

Individual 

Orginization

BluePrints

Individual 

Orginization

Performance Indicators

Rumpke’s overall vision is made up of holistic and long term goals. After they were created, we were able to determine the critical success factors. These are the ways in which each goal is measured. Lastly, the indicators, these are the ways in which you know that a goal is completed / or accomplished. The KPI’s should be easily understood by our employees as well as our users. Many people can view this information to answer different questions. The visualizations are aimed to be engaging and informative.

Strategic Goals 

Critical Success Factors 

Build waste awareness

 

Closing loop of farm to face (making sense of waste and addressing environmental issues)

 

Impact in community

 

Accomplishing this in a profitable way

Quality of info

   Ease of access

   Channels

   Website and App 

 

Efficiency of process

   Removing compostable waste  

      from landfills

 

Involvement of users

   Change of lifestyle

 

Cost

   Efficiency

   Price

Indicators

Apps and website

   Number many visits

   Conversion rate

   App flow

   Time

 

Waste Vs. compost

   Amount of fresco sold

   Volume

   Track through app and the

      dashboard

 

Revenue charts

Conclusion

Because Rumpke Waste & Recycling is such a large player within US waste management, enabling a system such as Fresco will allow a simple transition into a better lifestyle for a large sector of people, aiding the country to move forward with sustainability practices.

Clarissa ter Maat

Carly Thompson