Challenge

I work in a company that operates in the sector of retail petroleum. In South Africa there are strict

regulations with regard to retail petroleum. These regulations present challenges which amongst

others include minimal differentiation of fuel products, fixing of fuel prices by government,

limitations to advertising of fuel products and the inability incentivise customers for fuel purchases.

It is therefore important to find different and innovative ways of creating a better customer value

proposition beyond the confinement of the petroleum retail regulations.

Selection

In attempting to address the challenge posed by the regulation in place, it became important to

engage various stakeholders in to what would create value for them when visiting the fuel station.

Through use of the design thinking process of identifying the "what is?", "what if?"  "what wows?"

and "what works?" and using the tool of learning launches, a step to creating innovative solutions

with various stakeholders which included management, employees, customers and the surrounding

community was embarked upon. the learning launch as a tool was selected to as appropriate in the

task as it allows for the following

  Identifying a gap, What are the key customer assumptions and how are well are they

executed?

  Allows for creation of a hypothesis

  Promotes the collection of data to either confirm or disconfirm the hypothesis

  Encourages thinking beyond the current offering of solutions and alternatives

  Requires active participation from all stakeholders

  Promotes testing and continuous learning

Application

The fuel company in question is set in the residential area of the town of Thaba Nchu, in the rural

province of the Free State, South Africa. For many years the town of Thaba Nchu was mainly

agricultural. Many stores in the town had limited product offerings confined to basic foodstuffs and

groceries. Even with modernisation, many of the town's stores have remained unchanged resulting

in the residents in Thaba Nchu having to travel to the main towns of Bloemfontein and Ladybrand to

access stores with more variety.  Furthermore many of the inhabitants are faced with the reality of

travelling to neighbouring towns for employment and education. Many leave the town early and

come back late from work. This observation by many of the frontline employees prompted the

management to engage with customers on what are the pains in their daily lives that could possibly

be alleviated by management. By addressing these challenges, management could ensure creating a

better customer value proposition which would also result in more visits to the fuel station and

ultimately increased fuel sales.

Insight and Approach

In answering the question posed by management, many customers would respond by saying

"convenience", as they had limited time at their disposal exacerbated by the fact that by the time

they got home in the evenings,  most stores were already closed for business.  In response to this,

the fuel station then embarked on providing additional services such as selling of prepaid electricity,

call-time and data vouchers as well as the sale of lottery tickets on site. To some degree this created

some relief into the customer needs.

Many parents come home from work and are faced with the challenge of still having to prepare

wholesome meals for the children whilst still juggling other household requirements. Typical

mornings at the fuel station are characterised with families in a rush to get to work and school and

parents often having to purchase chips and sweets from the onsite store for work and school

lunches.  In the evenings parents filling up for the next morning's travel will have fast food packages

in their vehicles for supper. As a parent myself, relating this situation to my own made me

empathetic to the parents. The hypothesis was created that modern day parents are still interested

in offering their families wholesome meals despite the time constraints they experience.

This observation prompted me, with the assistance of the fuelling attendants to collect data and

ascertain whether this was indeed true. With assistance of fuelling attendants while servicing the

vehicles, a few parents were asked whether they would appreciate pre-packaged wholesome foods

and snacks offered in the retail store on site as opposed to the sweets, cookies and chocolates

currently on offer.

Majority of the parents asked indicated that this would solve many of their challenges of balancing

schedules, family time and providing wholesome meals to their children. I then embarked on a

process of testing the hypothesis and started by offering very small amounts of foods in the store. By

the first day, all the food that was prepared was sold out at the end of the day. Upon purchase of

these pre packaged meals, I would engage with the purchaser and ask the following questions?

  What prompted the purchase?

  Is it likely to be a regular purchase?

  What else would they like to have that would complement the purchase?

  Who would they recommend the purchase to?

Many of the responses articulated that the purchase was motivated by time constraints, and the

need to have food that had a "home-cooked" taste. Furthermore the purchases would likely become

regular if more family sized portions and variety were offered. Lastly the range of products would be

recommended to friends and family.  These interview responses were recorded in journals and more

questions were developed from these questions were derived from these questions as follows

  Would you prefer the offering of full meals or single prepared foods

  Would you consider buying desserts with your meals?

Further responses indicated that the pre-prepared foods was preferred mostly by working parents

and would like to purchase family sized portions as they were more economical and practical.

Furthermore, very few families were interested in dessert options.

Key Successes

Following a test phase of the product, many customers have visited the convenience store even

when not visiting the site to purchase fuel.  Although fuel sales still remain the main revenue

contributor, sales in the convenience store as a result of innovation in the form the new line of food

products has almost doubled. This has necessitated that a much bigger floor space be demarcated

for fresh food.


Challenge I work in a company that operates in the sector of retail petroleum . In South Africa there are strict regulations with regard to retail petroleum . These regulations present challenges which amongst others include minimal differentiation of fuel products , fixing of fuel prices by government , limitations to advertising of fuel products and the inability incentivise customers for fuel purchases . It is therefore important to find different and innovative ways of creating a better customer value proposition beyond the confinement of the petroleum retail regulations . Selection In attempting to address the challenge posed by the regulation in place , it became important to engage various stakeholders in to what would create value for them when visiting the fuel station . Through use of the design thinking process of identifying the " what is ? " , " what if ? " " what wows ? " and " what works ? " and using the tool of learning launches , a step to creating innovative solutions with various stakeholders which included management , employees , customers and the surrounding community was embarked upon . the learning launch as a tool was selected to as appropriate in the task as it allows for the following  Identifying a gap , What are the key customer assumptions and how are well are they executed ?  Allows for creation of a hypothesis  Promotes the collection of data to either confirm or disconfirm the hypothesis  Encourages thinking beyond the current offering of solutions and alternatives  Requires active participation from all stakeholders  Promotes testing and continuous learning Application The fuel company in question is set in the residential area of the town of Thaba Nchu , in the rural province of the Free State , South Africa . For many years the town of Thaba Nchu was mainly agricultural . Many stores in the town had limited product offerings confined to basic foodstuffs and groceries . Even with modernisation , many of the town 's stores have remained unchanged resulting in the residents in Thaba Nchu having to travel to the main towns of Bloemfontein and Ladybrand to access stores with more variety . Furthermore many of the inhabitants are faced with the reality of travelling to neighbouring towns for employment and education . Many leave the town early and come back late from work . This observation by many of the frontline employees prompted the management to engage with customers on what are the pains in their daily lives that could possibly be alleviated by management . By addressing these challenges , management could ensure creating a better customer value proposition which would also result in more visits to the fuel station and ultimately increased fuel sales . Insight and Approach In answering the question posed by management , many customers would respond by saying " convenience " , as they had limited time at their disposal exacerbated by the fact that by the time they got home in the evenings , most stores were already closed for business . In response to this , the fuel station then embarked on providing additional services such as selling of prepaid electricity , call - time and data vouchers as well as the sale of lottery tickets on site . To some degree this created some relief into the customer needs . Many parents come home from work and are faced with the challenge of still having to prepare wholesome meals for the children whilst still juggling other household requirements . Typical mornings at the fuel station are characterised with families in a rush to get to work and school and parents often having to purchase chips and sweets from the onsite store for work and school lunches . In the evenings parents filling up for the next morning 's travel will have fast food packages in their vehicles for supper . As a parent myself , relating this situation to my own made me empathetic to the parents . The hypothesis was created that modern day parents are still interested in offering their families wholesome meals despite the time constraints they experience . This observation prompted me , with the assistance of the fuelling attendants to collect data and ascertain whether this was indeed true . With assistance of fuelling attendants while servicing the vehicles , a few parents were asked whether they would appreciate pre - packaged wholesome foods and snacks offered in the retail store on site as opposed to the sweets , cookies and chocolates currently on offer . Majority of the parents asked indicated that this would solve many of their challenges of balancing schedules , family time and providing wholesome meals to their children . I then embarked on a process of testing the hypothesis and started by offering very small amounts of foods in the store . By the first day , all the food that was prepared was sold out at the end of the day . Upon purchase of these pre packaged meals , I would engage with the purchaser and ask the following questions ?  What prompted the purchase ?  Is it likely to be a regular purchase ?  What else would they like to have that would complement the purchase ?  Who would they recommend the purchase to ? Many of the responses articulated that the purchase was motivated by time constraints , and the need to have food that had a " home - cooked " taste . Furthermore the purchases would likely become regular if more family sized portions and variety were offered . Lastly the range of products would be recommended to friends and family . These interview responses were recorded in journals and more questions were developed from these questions were derived from these questions as follows  Would you prefer the offering of full meals or single prepared foods  Would you consider buying desserts with your meals ? Further responses indicated that the pre - prepared foods was preferred mostly by working parents and would like to purchase family sized portions as they were more economical and practical . Furthermore , very few families were interested in dessert options . Key Successes Following a test phase of the product , many customers have visited the convenience store even when not visiting the site to purchase fuel . Although fuel sales still remain the main revenue contributor , sales in the convenience store as a result of innovation in the form the new line of food products has almost doubled . This has necessitated that a much bigger floor space be demarcated for fresh food .