An Exercise in Designing a Travel Coffee Mug

Elie  Ofek; Michael  Norris

Exercise | September 2013

An Exercise in Designing a Travel Coffee Mug

by Elie Ofek and Michael Norris

Abstract

In recent years design has emerged as a critical factor in the success of many new products. This case exercise provides a hands-on way to experience the design process and offers a structured approach for incorporating key considerations that can aid in effective design. Students are asked to generate ideas for the design of a new reusable travel coffee mug. Relevant information on the consumer coffee market and on existing coffee mugs is provided. To assist students in this task, they are presented with an approach employed by the design firm RKS and which has been called Psycho-Aesthetics (PA) by its pioneer Ravi Sawhney. The PA process involves in-depth market research and visualization, a lens to assess existing competitive offerings, the creation of potential customer personas, and imagining a "hero's journey." When combined, these analyses allow designers to conceive elements that will result in a new product or service that delivers a unique customer connection for a specific target market. The exercise gives students an example of a company that successfully used PA principles to design and launch a new reusable water bottle in the late-2000s. It then asks them to follow the PA process to design a reusable travel coffee mug. The exercise includes exhibits to help students visualize the market, and an appendix with a detailed explanation of the PA process.

Keywords: New Product Development; innovation; design; Market research; competitive positioning; Design; Product Development; Consumer Products Industry;

Language: English

Format: Print

24 pages

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Citation:

Ofek, Elie, and Michael Norris. "An Exercise in Designing a Travel Coffee Mug." Harvard Business School Exercise 514-042, September 2013.

In 2014, clothing retailer Gap Inc. rolled out a new performance management process for headquarters staff that did away with a traditional rating and ranking system. The new process involved informal monthly meetings between managers and their reports, and it more closely tied bonuses to business performance. Would it serve to motivate employees? Could its framework be used in Gap Inc.'s thousands of stores?

Chris Down, Global Brand General Manager for Hot Wheels, and his team from the Advanced Play Group within Mattel, Inc., had developed an entirely new “mixed play” product experience that blended familiar Hot Wheels play in the physical world with breakthrough play in the digital world. The technology underlying the product was an NFC chip embedded in the physical Hot Wheels die-cast car that could be scanned to add a digital version of the car into a virtual domain, where users could see their stats and play video games with the car. The goal for the new mixed play experience was to extend the age of the Hot Wheels customer, as children were observed to be moving on from physical toys to digital play at a younger and younger age. The mixed play concept had received unprecedented investment and support, since it represented a whole new approach to play that could set the stage for the future of Hot Wheels and other Mattel brands. In early 2019, the product development phase was nearly complete and plans were being set for the launch. Key decisions needed to be made around positioning, naming, pricing, channel, promotion, and launch timing. Given the high expectations for the innovative mixed play platform, it was critical to get these go-to-market decisions right.

Case | HBS Case Collection | September 2020

Hot Wheels at Mattel: Reinventing the Wheel

Elie Ofek, Andres Terech and Nicole Tempest Keller

In 2017, Chris Down, Global Brand General Manager for Hot Wheels, and his team from the Advanced Play Group within Mattel, Inc., were considering which innovation path to pursue in order to "future proof" the Hot Wheels franchise going forward. Hot Wheels was the number one selling toy in the world (by unit volume), however, play patterns among children were rapidly changing and children were moving on from physical toys to digital play at a younger and younger age. Hot Wheels needed to determine how to respond. One option considered was the development of a new “mixed-play” product that blended physical and digital play. While the mixed play idea was still at an early conceptual stage, it would likely involve embedding a chip into the Hot Wheels die-cast car, turning it into a “smart car” with its own unique identification. Users could play with the smart car in the physical world and on an app, thus offering an opportunity to also appeal to Hot Wheels consumers who were intrigued by digital play. Hot Wheels had made a number of forays into the digital space over the years, through licensing the brand to app and game developers and developing toys with some digital elements. The licensing strategy was low risk, low reward, and Mattel’s own digital development had produced varied results, creating a culture hesitant to take big risks in the digital space. Down knew that a mixed play innovation would require a significant investment in time and resources. However, Hot Wheels parent company, Mattel Inc. had seen revenues and operating income drop for the past three years. It was unclear if Mattel’s new CEO, Margo Georgiadis, would be supportive of the mixed play direction as the cornerstone of Hot Wheels’ growth plan. With Hot Wheels’ 50th anniversary coming up in 2018, Down had to decide whether his team should push for an out-of-the-norm investment in this new mixed play idea or should Hot Wheels focus its time and resources on physical toys, developing a special collection of die-cast cars for the 50th anniversary? Alternatively, should Hot Wheels meet the age compression challenge head on by considerably expanding its pure digital initiatives?

Citation:

Ofek, Elie, Andres Terech, and Nicole Tempest Keller. "Hot Wheels at Mattel: Reinventing the Wheel." Harvard Business School Case 521-015, September 2020. View Details

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An Exercise in Designing a Travel Coffee Mug

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