Nixon - GROUND CONTROL

A proposal to make the little things better.

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Stephen Langford Jahnavi Mange SUST 713 Fall 2017 Prof. Scott Boylston

Luisa Solano

Index CHAPTER 1: Industry Analysis • Introduction:

A Reflection on Time, Consumption, and the

Circular Economy

• Industry Overview • Company Profile • Analysis Tools

CHAPTER 2: Primary Research • Probe and Survey Results: Own your Awareness

CHAPTER 3: The Solution • Mission, this is GROUND CONTROL. • How it Works?

• C2C Bronze Certification

CHAPTER 4: Exhibits • Tools for Consultation

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Chapter 1: Industry Analysis

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A Reflection on Time It is human nature to want to explore - to be curious of the world around us - to be creative - to be innovative. Humans seek to develop ideas and technologies that will make life easier, more simple, more organized. Since the dawn of Homo Sapiens, there has always been a need to keep track of time.

While this began for purposes of survival, such as knowing the agricultural seasons and when to seek shelter, it seems as if keeping track of time has become part of human nature. However, while it may be human nature to seek to make things easier, it is, in doing so, just as much in human nature to make things even more complicated.

Humans did not always understand all aspects of what time is defined as today, such as with months, weeks, hours, and seconds, but history does suggest that humans have had a relatively sound understanding of the day and year. As time went on, as man evolved, as did man’s means of understanding time. Measurements became increasingly accurate, and eventually lead to the transition away from astrology as a measurement of time towards that of physics.

According to The National Institute of Standards and Technology (NIST), the second became defined as “9,162,631,770 oscillations or cycles of the cesium atom’s resonant frequency” (“A Walk Through Time”). Man became obsessed with time.

While humans may not have created time itself, the perception of time is socially constructed. Humans cannot control time, but they can control their relationship with time and thus, their experience of time - their experience of life. Time both shapes experience and is shaped by experience. Time is shaped by cultural norms, values, and language.

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In modern, industrialized society, time must be regimented and organized, measured and scheduled. It must be filled with activity and productivity. Then, in order to increase efficiency, fixed routines are developed, which then rob everyday life of its spontaneity. This has become not

only socially accepted, but it has also become the norm. It has become the norm to lack stimulation - to lack a sense of satisfaction of life - to lack a sense of fulfillment.

In order to feel something, society then seeks to fill this void with instant gratification through material consumption. There is no consideration for the long term consequences of these actions, there is merely the urge to stimulate the one’s senses. As these cycles of fixed routines, instant gratification, and material consumption continue, they become dependent on one another. They become a negatively reinforced feedback loop. They become the reference for comparison of past experiences

and for future expectations, and they become the motivation to at least maintain, if not increase, economic income. It becomes the measure for quality of life.

Ironically, however, in order to increase efficiency, the bar is actually being lowered. This is not to say that individuals are not productive and are not increasing their productivity day in and day out.

With the rapid advancements in technology that characterize today’s marketplace, we most certainly are, but the advancements are leading us in the wrong direction. Whereas time was once used to ensure the success of life, it has now become a means to ensure its demise.

Each individual, for the most part, has experienced something that stimulates them - something that they have enjoyed doing - something that made them feel alive. They have just fallen into this cycle from which they have forgotten how to break away.

Therefore, in order to break them out of this routine, they must recognize what it is that captivates them.

They must look to the times when they were not numb, when they were not controlled by their perception of time.

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It is not human nature to be controlled by time.

There are still many cultures throughout the modern world that do not focus on time in the same manner as these industrialized regions. While time may be the only true constant in the world, as all things do have both a beginning and end, these other cultures have simply decided that by focusing less on time, they have an overall greater satisfaction of life and greater appreciation for their surrounding environment.

Therefore, it is perhaps the industrialized regions’ obsession with time that has lead to the drastic environmental degradation that has occurred since the industrial revolution of the 1760’s, and in order to remedy the damage that has been done to not only ourselves and society, but also the environment, we must restore the balance between this father time and mother nature.

Overconsumption and Behavior Change As a whole, overconsumption refers to the consuming of resources faster than the planet has the capacity at which to restore them. While in relation to raw material and resource consumption this has lead to a planet in ecological overshoot, meaning that society has exceeded the Earth’s carrying capacity and that almost half of the resources consumed each year are being stolen from future generations, overconsumption can, at a surface level, also simply refer to this tendency of consumers to fall into the ploys of powerful organizations that consciously and intentionally manipulate users and consumers into using and consuming more, whether in terms of products or services, both in quantity and frequency. This can refer to fast fashion, social media, news outlets, tech companies, etc. However, while the aim of these powerful few is to generate long term sales volumes, this has lead to an overwhelming number of issues, both socially and environmentally, that, to the consumer, are often either not recognized, or simply out of sight and out of mind. These issues range from excessive resource consumption, pollution generation, and waste streams, and not just the land, but the air and water, as well, and to the marginalization of developing nations, and even the inclination to spend yet another fifteen minutes scrolling through the news feed on social media platforms, robbing users of that time they crave so greatly.

Therefore, in order to address these issues, what is required is behavioral change by both consumers and businesses. However, short of a widespread shift in cultural values, for businesses and merchandisers whose primary concern is on shareholders’ earnings growth, change will only come from the potential for increased earnings growth or the threat of that earnings growth, both of which will be the result of changes in consumers’ individual consumption habits.

That being said, change is hard, even for those who recognize the need for change. There are some who may not want to change. Routines are comfortable, and change is uncomfortable. People do not like being uncomfortable. Fortunately, as routines are

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both habits and traps, these routines can be broken and there are a number of leverage points that can be used to help make the small, subtle shifts in behavior that can then lead to the bigger, normative shifts. These consumer behavior shifts have actually already begun. Consumers are beginning to understand that more sustainable consumption habits are necessary to improve environmental conditions for future generations.

Yet, change must still be facilitated. It is often useful to script and direct the change very deliberately.

It must be made by inspiring the consumer, while also making it both minimal and personal. It must be coerced and its growth must be nurtured. Again, it is the small, subtle changes that lead to the larger solution oriented changes. As the behavior continues to shift and the individuals are instilled with a growth mindset, the agent that enables the shift then begins to transition from an external proponent to the internal, perceived identity of the individual him/ herself.

Circular Economy Rather than the “take, make, and dispose� extractive model that currently characterizes today’s global economy, the circular economy is based on a model that is restorative and regenerative by design. It is based on recycling on a system-wide scale and aims to redefine products and services in a manner that designs out waste and minimizes negative impacts on society and the environment. In fact, it is based on the idea of building not only economic capital, but social and environmental capital, as well.

To do so, the circular economy model aims to maintain products and components at their highest material value throughout their total life cycle. This involves a distinction between technological and biological cycles and components, preserving and enhancing natural capital, optimizing resource yields,

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and minimizing system risks by properly managing finite sticks and renewable flows. Based on these principles, consumption only occurs in truly effective biological cycles.

Therefore, in the circular economy, waste is eliminated, diversity is enhanced, and renewable energy is utilized. It requires both thinking in systems and thinking in cascades. From a design perspective, this includes conscious consideration of material selection, standardized components, product durability, easy end-of-life sorting and separation or reuse of products and materials, and manufacturing criteria that take into account potential applications of by-products and waste streams.

1. Industry Overview With consumers’ lifestyles becoming more and more fast paced, stimulating an increased perception of the need to be synced with time, as well as the growing interest in watches as a signal of style and status, the global watch industry is currently going through a period of significant changes. There are three primary emerging trends, including growing demands for sports watches, the transition of marketing initiatives, and

Complementary to the notion of consumers recognizing the need for more sustainable lifestyles, consumers are also beginning to recognize the need for more healthy lifestyles, leading to the aforementioned increased interest in sports watches, which are ideal for running, biking, hiking, surfing, and whatever else their mission may be. With a built in GPS, these can be useful for tracking distance, pace, calories burned, and time. They can even be used to keep track of heart rate, altitude, barometric pressure, ambient temperature, sunrise and sunset times, and even ocean tides.

As for marketing initiatives, with such a saturated market and with the subsequent intense competition between vendors, investments in marketing campaigns are a significant factor in establishing a strong foothold in the industry. The primary means of these campaigns are through the adoption of e-marketing, such as on social media platforms, and the adoption of various ambassadors, including famous athletes, rock stars, actors and actresses, and models. As these individuals wield considerable influence on consumers, they are an effective

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method of advertising to targeted audiences.

Furthermore, in this extremely competitive market, brands are recognizing the need for continuous innovation to maintain their market position and are seeking to develop ideas that will allow them to stand out from the competition. By then offering such products, brands will be able to accelerate their market growth and generate revenue, thereby driving the market. While it might be obvious to some that consumers would be willing to purchase more sustainable product lines if the products performed better, cost less, and were from more trustworthy brands, many may not recognize the opportunities that lie in addressing sustainability issues as a brand, which include both social and environmental issues alike. Once such practices are adopted, there are a number of consumers who will gravitate to these brands simply because of their business practices, which if done correctly, can even shift consumer consumption patterns to even more environmentally and socially responsible habits through their own shift in perspectives.

2. Company Profile

NIXON, Inc. was founded in 1997 in Encinitas, California as a quality watch brand with a focus on making the little shit better. Nixon seeks to make custom built products that reflect the company’s unique point of view, their heritage, and their style.

It has now grown to a multi-national company with distribution chains in over 90 countries and a product range that includes select men’s and women’s softgoods, leather goods, custom headphones, and audio accessories. Nixon, as a brand, takes pride in their lifestyle of world travel,

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experience of life and exploration, the people they meet, and the journey that gets them there. They claim that it is this lifestyle that shapes the products that they create, which are characterized as clean, essential, and minimal. With their origins tracing back to the surf world, this aspect of their brand is still very evident in their product lines and marketing strategies, but with an added emphasis on the style of freedom and subtle rebellion that they seek to portray.

3.1 Personas (Target)

Johanna Age: 31 Country: Costa Rica Occupation: Fashion Designer

Persona goals:

herself informed. In addition to that, outdoor media plays a big role in her life since she also spends a large amount of time driving between cities, surf spots and shops to show her products.

• •

When she has time, she watches select TV series on Netflix or maybe a prime time televeision but it’s not her primary source of entertainment.

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To position her brand as the top surfing bikinis for latin american girls, using some indigenous textures and accessories to achieve that but also to help native communities.

To improve her Bodyboarding skills everyday.

To build a self sufficient country house with her husband.

Persona pain:

Johana often debates between using sustainable materials and helping her surrounding communities versus increasing profits by choosing cheaper materials for her business. She knows it is hard for her to achieve that, being an independent fashion designer.

She also is a surfer, so she’s concerned about oceans, environment and animals causes. That’s why she chooses brands that can express her lifestyle and fashions tastes. Sometimes she has trouble buying the things she likes, As an entrepreneur, she does not make enough money to pamper herself.

Persona media & device preference:

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Since Johana is an outdoors enthusiast and entrepreneur, she needs to be connected to her cell phone most of the time. She often engages various social media platforms, such as Twitter, to keep

Persona biography:

Johanna had a job before deciding to become an entrepreneur. She was handling the sales department of a retail clothing company. However not having time for her hobbies and her personal life made her resign and look for other horizons. She had plenty friends from the surf world, and she felt no one in the country was making specialty surf bikinis, so she took the opportunity to start a new company. She has no kids but she owns a border collie named Jamaik.

Persona bio quotes -

“I would rather have my time than tons of money, money can’t buy life quality”.

“Girls need to have options to look pretty and also to have great surf performance without suffering for a loose top” “My family doesn’t agree with my life decisions but, they need to respect that”.

Ideal customer experience:

She would like to have the most fashionable NIXON accessories, but right now her money is destined for mortgage, car leasing and other important obligations. She has one NIXON watch she bought before resigning her job and it’s one of her favorite watches because she can use it to surf and it looks good when she’s at a business meeting. She wears it with pride. She chose NIXON, because it shows who she is to the world. She would buy her new Nixon online, directly from the Nixon site, which she visited after seeing Leila Hurst (Nixon ambassador) wearing the new collection.

Favorite brands

She’s not loyal to any food brand, just whatever is less expensive. She does appreciate local produce, but is often not her primary concern. When it comes to surfing and performance, she and her husband choose only the best: Roxy boards and dakine backpack, jeep for taking the boards to the beach.

When it comes to cleaning, she would choose ecodriven brands that are good for her dog’s safety.

Daniel Age: 25 Country: USA - Miami Occupation: Mechanics Engineer

Persona goals: • • •

Get a promotion in the next two years.

Get a new SantaCruz Longboard to skate through Lincoln Road.

Meet a special girl to share the rent with.

Persona pain:

Daniel is a skater and a surfer when his job gives him some spare time. He’s enjoying being in his 20’s with some independence and money, drinking with his friends, and doing whatever he pleases.

However he’s feeling somewhat lonely and he’s thinking about starting a relationship with a girl, but the idea of losing his personal space still makes him have doubts about it.

Persona media & device preference: Daniel is very much a digital consumer and also sometimes flips through coupons and

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ads jn the mail to save some bucks. He wanted to live in a good part of the city, but this is expensive.

Sometimes he takes advantage of the best discounts at the grocery store so he can to use the spare money to buy beer, go out and buy him some goodies, like skate boards, bikes, etc.

He never goes out without his car, occasionally listen to radio when he’s driving, and receives flyers from cute girls in rollerblades. He likes to watch everything online and he also has Hulu at home. Most of the time he’s with his friends in bars, restaurants and skate shops.

Persona biography:

Daniel finished his BA two years ago and has been working since he graduated. He likes being independent so, for now he’s not thinking of going back to school. He will consider that if he decides

to get married, which he does want, along with his own house and dog.

sticker for his car with the name of the store on it.

His favorite brands include Santa Cruz, Sector 9, Nixon, Quiksilver, Patagonia, Northface, Volcom, Hurley. Regarding groceries and cleaning products, he buys what his mom and dad bought for their house, so he buys the same. Sometimes he goes to Costco to take advantage of the sale prices. But he eats out most of the time.

Persona bio quotes -

“Girls are so basic these days”.

“I enjoy doing my work, but I also think that personal life needs attention” “Sometimes people take themselves too serious”.

Ideal customer experience

He buys his skate and surf goods in a local surf store called Fritz. They know him here since everytime he goes he tends to buy something like wax for his board, or some new wheels for his skateboard. He owns both a NIXON and another surf brand watch. He likes being a special customer at his local surf shop and he even has a bumper

He’s not paying attention to sustainable brands but he do cares for animal and ocean causes.

3.2 Sustainability Performance

In addition to NIXON’s compliance of the SA8000 code of practice by the Social Accountability Institute, Nixon is also a member of the Surf Industry Manufacturers Association (SIMA), with whom they recently partnered in the release of the “Float Collective” campaign. Under this initiative, along with a number of other SIMA members, 5% of each purchase of a product from the “Float Collective” will be donated to the 2017 Humanitarian Fund. Once the fundraiser has finished, the proceeds will then be allocated to various NGO’s that use surfing as a means to help those in need.

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3.3 Consumer-Facing Strategies and Behavior Change

NIXON, Inc. is currently in a transitional phase as a business. In August 2017, NIXON announced that they will be bringing in Scott Kerslake as the new Chief Executive Officer (CEO) in order to restructure their business model and reposition themselves in a manner that will aid them in reaching consumers efficiently.

What this implies is that NIXON will be focusing more on e-commerce and digital marketing campaigns, with emphasis on a younger target audience. These new approaches will be implemented over the next few months, along with collaborating with businesses whose strategies and audiences align with those of Nixon, but are slightly more outside of the core demographic.

NIXON, as a watch and surf brand, is very much trend focused. While some may prefer their more minimalistic and traditional watches, others may prefer models from their Star Wars Collection, which has a theme based on the newest installment, and then some might even be looking for something with a little more functionality. Regardless, NIXON seeks to manufacture watches that are just the right balance between dress and sport, but that are specifically orientated towards the active lifestyle. Even their new smartwatch, The MISSION, which represents the brand’s attempts to remain progressive and fresh, was designed to serve as somewhat of a mission control on the user’s wrist allowing both, NIXON as a company and their users to push themselves.

It required collaboration with a number of organizations, such as Google, Qualcomm, Surfline, and Trace, in order to include all of the features that they thought would allow them to gain a market advantage over other competitors as a surf-oriented

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and stylish smartwatch.

In order to market these product lines to consumers, NIXON’s marketing strategy focuses much attention on the influence of brand ambassadors and promotional videos, which will likely increase with this transition towards e-commerce. One brand ambassador, for example, Leila Hurst, is a professional surfer from Hawaii who’s affinity for a life of adventure is a perfect embodiment of the lifestyle NIXON strives to portray as a brand - a balance of adventure and style. Therefore, it was Hurst that inspired NIXON to create their first women’s Signature Series, which feature a vibrant and island-style vibe with colors of light pink, soft gold, and motifs of a moon and stars. Another brand ambassador, Josh Kerr, who is also a professional surfer, prides himself on being someone always on the go - always seeking the adventure - always on a mission. Even his daughter, Sierra Kerr, at only 9 years old, is both a skate and surf prodigy. Other brand ambassadors include Tony Hawk, John John Florence, Keila Moniz, and Rob Machado, among several others.

While NIXON themselves do not have many, or almost any, sustainability initiatives, they are the only watch supplier of the snowboard and apparel company, on contrast with Burton, who does have very strong sustainability initiatives. Burton’s initiatives range from women’s empowerment and philanthropic donations to strict environmental and social responsibility policies, as well as an organizational culture with strong ties to sustainability, which includes organic garden plots for employees, organic kombucha on tap, free DIY classes, dog friendly workplaces, skate ramps, and office closings on powder days.

3.4 Competitors

Technomarine - https://www.technomarine.com/ Technomarine is a luxury accessories brand since 1997. It is focused on the craftsmanship and materials used.

Ripcurl - https://www.ripcurl.com/us/ While Ripcurl is primarily known as a wetsuit and swimsuit manufacturer, they also have a few lines of accessories, including watches. However, as a surf brand, these accessories focus more on function than fashion.

Freestyle - http://www.freestyleusa.com/ Freestyle is a youth oriented watch brand ,Known as one of the world’s first and trusted water sports watch. It is epitomized by stak watch. Being a youth brand the collection is based on different water sports with a variety of color range.

Vestal https://www.vestalwatch.com/ “Vestal collections are watches and eyewear that fine-tune style and expression for the musically inspired individual. Established in 1997, Vestal is marketed and branded through friends, musicians, artists, and athletes who are immersed within music culture.”

Timex - http://www.timex.com/ Timex is one of the reputed brand since 1854,

Fossil - https://www.fossil.com/us/en.html Founded in 1984 fossil is a classic American watch and accessories brand having 550 stores and 14,000 employees globally. It focuses on having a passionate and friendly work environment and are involved in the community development process.

Having a sustainable approach towards design and manufacturing is one of the core aspects of fossil.

Jack Mason - https://jackmasonbrand.com/ Jack Mason was founded in 2013 in Dallas , Texas.

The company focuses on leather products with a view to incorporate classic American culture with the contemporary design style.

Garmin - https://www.garmin.com/en-US/ Founded in 1989, Garmin is a passionate technological brand designing for automotive, marine, outdoor and sports industry. The company believes in being aligned with the latest technological advances and design for all age groups.

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having its retail distribution all over the globe. It provides a wide range of choices for the consumers of all age groups and profession.The uniqueness of the brand is that it provides a choice for customising the watch according to the consumer’s requirement.

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Quality of Materials: Responsible sourcing and increases in energy efficiency, but products still made of rubber, plastic, and mercury Env. Footprint (energy consumption + transportation + waste management) is high as large brand, but continuously seeks to improve environmentally.

• • • • •

3 R’s - Reduce, Reuse, Recycle Safe and Proper Disposal Energy Efficiency Water consumption reduction “Sustainable shipping + packaging”

Fitbit - https://www.fitbit.com/home The company originated in the year 2007 with the view to provide a new experience to the users in the field of health and fitness. Using the latest sensor and wireless technology into account, the company believes in providing a fun and passionate outlook to the consumers for being responsibly fit.

MVMT- www.mvmtwatches.com/ MVMT was founded in 2013 with the help of crowdfunding campaign. The company focuses on original and fresh design outlook for watches and accessories. Being an online brand , the company has its market in more than 160 countries globally.

4. Analysis Tools To determine what steps should be taken in order for NIXON to reach their full potential as a brand - to determine how to become the best brand that they could possibly strive to be, not just in the service of themselves, but others as well - there must first be a clear understanding of Nixon’s brand identity, their brand strategy, and their placement within the industry. Only then can the right brandspecific means of achieving self-actualization be explored. The tools include:

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1.

2.

3.

4.

5.

6.

VALUE PROPOSITION CANVAS AUDIO BLUE OCEAN STRATEGY CANVAS SERVICE OFFERING MAP STAKEHOLDER ENGAGEMENT MAP sSWOT*

* The book will only explain the key findings of these tools, for imore in depth nformation, refer to last chapter.

4.1 AUUDIO In today’s global marketplace, most companies recognize the need for the use of strategic analysis tools that allow them to gain insights into their strengths and weaknesses, as well as opportunities and risks, in hopes of gaining a stronger foothold in their market position. An AUDIO analysis is one such tool which provides a broader perspective of a company’s current situation and future opportunities. In using AUDIO, the company analyzes the ASPECTS of their business operations, UPSTREAM and DOWNSTREAM supply chains, ISSUES that could present themselves, and the OPPORTUNITIES that may be available. This is done to not only understand a company’s economic standing, but also its sustainable positioning at that time. Thus challenges like climate change, energy, water, biodiversity, chemicals/toxics, air pollution, waste management, ozone layer, oceans and deforestations prove as the base for the companies to decide its situation. An additional factor in the AUDIO analysis can be included, under USER (AUUDIO), as the consumer behaviour towards the demands and handling of products/services until its end of life-cycle creates a strong impact on the overall decision making of the company towards its product development.

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Insights from AUDIO analysis: Primary threats include: • Waste management practices stemming from toxic, non-biodegradable waste streams • Neglecting key CSR strategies as a surf and snow brand in not advocating for the protection of the world’s oceans and forests Primary opportunities: • Use of more sustainable materials • Material recycling and reuse • Product buy-back/return program • Awareness campaigns of how actions and behaviors affect biodiversity • Increase efficiency of material sourcing, manufacturing, and production processes • Composting biological waste streams • Use of ocean plastic in product manufacturing • Eco-friendly product packaging

4.2 Value Proposition Canvas A value proposition canvas is a tool used visualize, design, and test how companies create value for customers. It describes the benefits customers can expect from a brand’s products and/or services by consisting of two primary components: a customer profile and a value map. The customer profile includes a set of characteristics that are assumed or observed in regards to the jobs or tasks that customers seek to accomplish. It highlights the pains that customers hope to avoid in their job or task and outlines the gains that customers seek, such as successful completion of a task. The value map, on the other hand, includes the set of benefits that are designed to attract customers. It describes how these products or services serve as pain relievers that make customers’ lives easier and outlines how they are even gain creators. These aspects are then connected to each other as best as possible until the conductor can figure out what best resonates with customers.

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In regards to NIXON’s target audience, users are primarily seeking to find a balance between work and life in order to maintain the adventurous and independent lifestyle that they pride themselves on having, while also maintaining an iconic style.

Therefore, NIXON caters to these wants through the production of various time pieces that enable users to transition from their work to their personal life without having to consider the different styles and functions required of each. This has lead to a wide range of both digital and analog watches, and most recently, the release of the NIXON Mission. Where consumers seek to improve activity performance, gain more time for outdoor lifestyles and activities, social approval, and personal goal achievements, the NIXON product lines address these through various performance measurement tools, a minimal style, and the promotion of the NIXON lifestyle through brand ambassadors that inspire and lead by example.

4.3 Blue Ocean Strategy Canvas

Most of the strategic tools used by the companies are based on direct or indirect comparison with the competitors. In the year 2005, W.Chan Kim and Kenee Mauborange came up with a unique set of tools for analysis known as the Blue Ocean Strategy.

Unlike traditional methods, the Blue Ocean Strategy provides a framework for the companies to identify their niche in the market which is untouched by any other competitors.

This is in opposition to the Red Ocean, which refers to saturated markets that requires businesses to fight against each other for their position. This, in turn,

avoids and sorts competition for comparison. The process involves selecting the criteria and mapping it against the competitors, including the company.

After the mapping is complete, the company can identify a vacant spot and this area serves at the window for new opportunities for the company to grow and develop.

Key Opportunities: • • •

Inc. Quality of materials Dec. Environmental Footprint Increase social responsibility and stewardship

4.4 Service Offering Map This tool helps to map and understand all the components of the service. Services are understood as goods and the service wrapping around a product.

From the Service Design perspective, consumers are not looking for goods, but for services, in this case, they are looking for time tracking and “status” service.

This tool is one of the first approaches done by the Service Design field in 2012 by Christian Gronroos,

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in his book, Service Management and Marketing: Customer Management in Service Competition. It’s primary objective is to map all the components of a service and understand how they interact between them, the role they play for the consumer and for the company, and how they could be modified by the consumer feedback.

The tool makes a graphic representation of all the components of the service and it is flexible to group and find further opportunities in each honeycomb slot.

4.5 Stakeholder Engagement Map Stakeholders play an important role in creating and maintaining business values for any company. This includes government entities, civil society, private sectors, and end users.

Every company has its priorities on how they connect to their stakeholders, and a stakeholder engagement map works well as a tool for determining a constructive approach towards addressing this issue.

It is plotted on two-axis system, where the x axis indicates the intensity of the issue, while the y axis shows the potential for the cooperation for the company. By dividing the issues into four parts, a completed engagement map provides clarity for

the company to know which stakeholders should be monitored, defended from, and with which to collaborate and connect.

Insights: •

Collaborate with NGOs, such as Rob Machado Foundation and Surfrider Foundation

Key Issues: Regulations, Brand Perception • •

Brand perception: Neglecting key strategic opportunities in not implementing sustainability initiatives Regulations: Reducing waste stream by recycling and reusing materials

4.6 sSWOT The sSWOT is a tool that can be used by organizations to evaluate their strengths, weaknesses, opportunities, and threats, with a specific emphasis on the sustainability and growing market trends.

With the main focus addressing prioritization and action, the sSWOT has the ability to allow users to gain insights regarding environmental challenges and how those threats can be translated into opportunities. It is also useful for motivating organizations to invest, innovate, and collaborate in a manner that addresses these challenges and

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increases their brand value.

In regards to NIXON, Inc. specifically, the main concerns are for the preservation of ecosystems and their global distribution network. Therefore, there lies opportunities for NIXON to focus more on incorporating practices that address the circular economy by launching efforts that encourage consumers to send back their products at the end of the product’s usable life, as well as initiating partnerships with NGOs to on environmental protection and preservation.

Key Insights: Trends/Challenges

Shifting consumer behavior; UN SDGs; Increase social awareness; Internet of Things

Opportunities

Collaborate with NGO to spread awareness and increase brand value; Closed loop material flows; Advocacy/Stewardship; Product line extension

Threats

Lack of sustainability initiatives; Market saturation

Strengths

Ambassadors; Style; Performance; Brand identity; Credibility in niche market;

Weaknesses

Below average sustainability efforts;Lack of partnerships with NGOs; Unsustainable manufacturing process and lack of consumer awareness of material recycling programs

Prioritize

Advocacy of environmental and social stewardship through partnerships with NGOs; Help shift consumer behavior in a direction that emphasizes individual, social, and environmental health and well-being; Transition towards more sustainable business practices through use of recycled materials and increasing consumer awareness of material recycling at end of life; Explore opportunities with product line extension to increase brand loyalty

Act

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Near term: Establish partnerships with affiliated NGOs and launch greater sustainability efforts to establish reputation as sustainable brand Mid term: Develop and release new product line to test a new approach to consumer behavior change and sustainable business practices Long Term: Redesign business model with more environmentally and socially responsible business practices, such as that of the service-and-flow economy, in order to address the triple bottom line and foster a greater sense of responsibility within the organization.

CHAPTER 2: Primary Research

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Own Your Awareness Having determined what opportunities and threats exist for NIXON, and which can be used in enabling NIXON to recognize their full potential as a brand, the next step is to determine which will be most effective in addressing NIXON’s triple bottom line and which will increase their brand value. While in some cases assumptions can be made, there is no substitute for direct observation of, and interaction with, consumers and potential users.

Based on the demographics and responses of the surveys completed, it is likely that the majority of the participants are not necessarily NIXON’s intended target audience in regards to lifestyle, but the results do indicate that they are at least the correct age range, with nearly 68% being between the age of 18 - 25. That being said, their responses do offer some useful insights. For example, the data compiled suggests that consumers do not tend to be particularly loyal to a single brand when it comes to watches, which presents an opportunity for NIXON to expand their presence into new consumer segments, and in doing so, increase both their earnings and their ability to affect greater consumer behavior change in those segments.

As for how, results indicated a number of findings.

First, of the 87 participants surveyed, about 2/3 stated that they own at least 1 watch. Specifically, 31 of the participants, or around 36%, own one watch, 46 participants, or 53%, own one or two watches, and 25 participants, or 29%, own three or more watches. When asked how often the participants purchase new watches, about 50% indicated that they purchase new watches often, while 33% indicated as almost never. The reasons for purchasing a new watch included to stay up-to-date with trends, to upgrade, to replace after prior watch broke, to monitor their health/activity, to give as a gift, to reflect their change in style, or just because they just like buying new things. For the1/3 who do not own a watch, the primary reasons for not owning

22

one included a general lack of interest or dislike of wearing watches or the irrelevance of wearing a watch in today’s world due to cell phones.

As for those who do purchase and wear watches, when asked what the most important feature is when looking for a new watch, the highest results pertained to style, durability, reflection of lifestyle, quality of materials, and SMART functions.

However, in anticipation of exploring an opportunity for NIXON with a product line extension, there were a few additional questions included in the survey that did not pertain to watches, but rather wall clocks. To begin, participants were first asked if they currently own a clock, to which 45% indicated they do not,

with the primary reason being that they simply use their phone. Next, participants were asked, if they did own a clock, what kind of features would they like to have included. Responses included sunrise and sunset times, hobby and lifestyle updates; such as surf, snow, and cycling conditions; health and activity tracking; calendar monitoring; weather/weekend forecasts; and family activity tracking.

Moreover, in order to better tailor this research to the NIXON brand, whose slogan is “we make the little shit better,” participants were also asked “what is a little thing that, if improved, would make your life easier?” Responses varied, but after consolidating them into select categories, the primary little things indicated were sleep schedule, better access to healthier food, time management, public transit and traffic updates, community engagement, green living tips, and achievement of daily goals.

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CHAPTER 3: The Solution

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MISSION, this is GROUND CONTROL It is clear that many perceive themselves as having a lack of proper time management skills. While throughout society consumers seek to accomplish more and more with each passing day, they still feel as though there are just not enough hours in the day. They search for products that will help them improve that shortcoming.

They search for products that will help them accomplish

more. Without proper direction, however - without something to break them from their routine without something to help them challenge the status quo - in being left to their own devices, society, for the most part, will maintain in this cycle. They will continue allowing their worklife balance to be lead askew in the pursuit of increased work productivity.

But in doing so, they are sacrificing the most essential part of what it means to be human - life.

Therefore, what is needed is not a tool that will merely help consumers accomplish more work in the day, but rather a tool that will allow them to feel more accomplished with their day. This perception of a lack of time management is not something that can be corrected through more regimented and structured time. It is something that can only be accomplished through an increased sense of fulfillment. Ironically, society, for the most part, needs to learn to slow down and appreciate their surroundings - to see the beauty in this world of constant movement. We need to learn that it is not material goods that provide fulfillment, but rather it is time, and what is done with that time, that provides fulfillment.

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Building on NIXON’s identity as an action sports brand and their MISSION smartwatch, we created GROUND CONTROL - an interactive wall clock that connects with user’s mobile devices and provides them with the information necessary to live a more conscious, active, and healthy lifestyle.

Rather than aiming to improve their daily productivity, it aims to foster a greater sense of fulfillment with their daily lives. Through a subtle, sleek, and compelling interface, GROUND CONTROL helps guide users in whatever their mission may be. It encourages them to take back time, get outside, and live the lifestyle that they are truly passionate about.

By connecting GROUND CONTROL with user’s smart devices, such as a phone or the NIXON MISSION, and Google Fit, users are able to set goals, track health and activity performance for both individuals and families, and then select which information is included on the display. This can include alerts for various outdoor activities and relevant weather conditions and forecasts, sunrise and sunset times, lunar phases, as well as calendar, traffic and public transit updates that are pulled from also connecting with Google Now.

SMAPPEE Thanks to Smappee, a smart meter that monitors household energy, water, and gas consumption, users can now have a real time visual display of their ecological footprint. Smappee utilizes a custom clipon sensor that users can quickly and easily attach to their fuse box and water line and connects to their smart devices via their home wifi network.

The information is fed directly to user’s connected devices in real time and allows users to track their daily, weekly, and monthly consumption and calculate the associated costs. It is also able to pinpoint specific appliances, faucets, toilets, and washing machines in order for users to be aware of from where most of their consumption is coming.

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As users continue engaging with GROUND CONTROL, users are able to complete and check off activities and goals in their own personalized lifestyle journal. As these tasks are completed, the background display, whether a forest or coral reef, becomes more alive and vibrant. They are able to watch as their ecosystems grow and flourish all while allowing themselves to grow and flourish. In some cases, exclusive alerts from NIXON brand ambassadors can be unlocked, as well. In addition, in order to visualize and increase awareness of user’s behavior and the impact user’s behavior has on the environment, GROUND CONTROL also features an ecological footprint monitor that provides live updates of monthly energy consumption, water usage, and estimated CO2 emissions through connectable apps and easy to install smart meters.

In transitioning to a service-and-flow business model, Ground Control is not purchased, but rather leased at a monthly rate. As this transition will also require the implementation of such circular design principles as design for disassembly, reuse and recycling, easy end of life sorting, material selection, and applications for by-products and waste streams, GROUND CONTROL will be well suited for the Cradle to Cradle Bronze Certification.

As an added incentive for users, for each month Ground Control remains in the user’s possession and is engaged with on a regular basis, 5% of the monthly rate will be donated to the Rob Machado Foundation, a non-profit organization founded by one of NIXON’s very own ambassadors that seeks to promote eco-literacy and environmental conservation in today’s youths.

How it works?

These tools are all based on fostering behavior change in users. In referencing the idea of planting the seed, this allows users to make small, incremental commitments and allows users the time to let ideas develop and view these notions, as well as themselves, in a positive light. It not only shrinks the change, but it also scripts the critical moves and points to the destination. It makes users feel something, and through building these small habits, it allow users to grow. Thus, these small habits lead to big changes. With various visual prompts, such as activity tracking, footprint monitors, as well as those that, with the anticipation of nice weather, ask users if they would like to spend some time reading in the park the next day, go camping the upcoming weekend, or bike to work, users are able to anticipate this into the schedule, and plan accordingly. Over time, as this behavior is repeated, it begins to shift their identity towards one that views themselves as someone who enjoys spending time relaxing outdoors and being active, forming an attachment to the great outdoors.. They begin to see themselves as someone who reads often, connects with nature, and behaves more consciously, and as this behavior continues, more books are finished,

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more tents are pitched, and more miles are biked rather than driven. They begin to see themselves as a continuous learner, an outdoor enthusiast, and a bicycle commuter.

For the subtle daily reminders, which include the sunrise and sunset times and lunar phases, it allows users the opportunity to take short breaks from their daily routine and just take a moment to soak in the beauty of the horizon and starscape. It gives them an opportunity to reflect both outwards and inwards, and remind themselves of what just a few minutes of peace can bring to their mindset.

While their new technological device provides them with the initial incentive to seize these moments, the need for the extrinsic incentives are replaced by their own intrinsic incentives and satisfaction they learn to recognize.

All of this could simply be accomplished through the use of an app on any smart phone, one of the key issues this product is addressing is the tendency of consumers to spend such a large amount of time behind screens.

`

How to get started: 1

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Receive the clock - Made of 100% reclaimed and recyclable materials.

2

Set it for 2 or 3 outdoor activities you want more time for, such as

3

Connect it with your devices to track health and footprint.

4

Hang it and wait! GROUND CONTROL will notify when its the best time to go out.

5

See the time you are gaining for yourself and unlock content. More snow, more fish, more trees.

6

For every clock leased, NIXON will donate to the Rob Machado Foundation for encouraging youth education in sustainable lifestyles.

Brandscendence The aim of developing GROUND CONTROL does not just pertain to consumer behavior change. It is a means of initiating the transition of NIXON, as a brand, to recognize and live up to their full potential in the service of both themselves and others. This is the idea behind brand self actualization.

However, from a bottom line perspective, this is also a long term strategy. According to a 2015 Global CSR Study, in which nearly 10,000 consumers were surveyed across the globe, “90% of consumers would switch brands to one associated with a social or environmental cause” (Cone Communications).

As consumers continue to recognize the need for more sustainable consumption patterns, they will increasingly gravitate towards brands that are much more sustainability focused than those that are not, and those that are not will be left behind.

Moreover, through such global efforts as the United Nation’s Sustainable Development Goals, as more levels of fundamental needs are being addressed, more of the population will, too, be pursuing this notion of self-actualization. They will be seeking to find that which they are passionate, searching to find and make use of their creativity, and to discover, reflect, explore, and realize who they are as secure individuals. In this sense, Maslow’s Hierarchy of Needs will be turned upside down. Where the questions of time, energy, and money were once at the base, these will rise to the top, meaning they will be the last concerns to be addressed, while self actualization will fall to the primary and most basic pursuit. At this point, it will be those brands that assist consumers in achieving these endeavors that will gain strongest foothold in the market.

UN SDG’s In September 2015, the United Nations announced the adoption of 17 Sustainable Development Goals (SDGs) in order to address a broad range of sustainable development issues around the world. These include such efforts as ending poverty and hunger, improving health and education, building more sustainable cities, combating climate change, and protecting the world’s oceans and forests.

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GROUND CONTROL already addresses three, one of which has direct implications for NIXON. The first, Good Health and WellBeing, aims to ensure healthy lives and promote well-being for all, at all ages. At its core, this is the primary aim of GROUND CONTROL, as well.

Next, it addresses Sustainable Cities and Communities, which seeks to make cities inclusive, safe, resilient, and sustainable.

This would be what might be considered a byproduct of GROUND CONTROL’s behavior change. As users become more connected with their environment and their community, inclusive, safe, and resilient cities and communities will follow.

Lastly, as it is one of the primary reasons for the design, GROUND CONTROL addresses the goal of Responsible Consumption and Production. It not only involves responsible production by NIXON, but it also helps facilitate a greater understanding of the service-and-flow business model and the circular economy as a whole for both users and producers.

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Cradle to Cradle Bronze Certification

Cradle to Cradle (C2C) design principles focus on the continuous innovation and improvement of product and service design concerning economic, social and environmental factors. Cradle to Cradle design represents the healthy and regenerative productivity of nature. It considers materials as assets rather than liabilities. The goal of C2C design is to leave a beneficial footprint for both society and the environment.

Principles In nature, there is no concept such as waste. The waste stream of one element or system becomes a valuable resource for another. It makes use of abundantly available and renewable energy sources.

It creates conditions that are conducive to life. Thus, the fundamental basis of the C2C design concept is based on that of natural systems, which provides designers with three three overall principles for the designing goods and services:

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•

Eliminate the concept of waste

•

Use Renewable Energy

•

Celebrate Diversity

Biological and Technical Nutrient Cycles of Product Manufacturing (right)

Complementary Metabolism Cradle to Cradle certification is grounded on the understanding of characteristics of sustainable materials, products, and systems. Thus, the major emphasis is on the human and ecological health impacts of a product’s ingredients at the chemical level and includes considerations for a product’s total recyclability and the feasibility of composting it safely.

As aforementioned, nature’s biological metabolism uses renewable energy and returns all waste materials for reuse in other systems. Every product in nature thus holds a future value and can be considered as a nutrient. As a natural organism, all man-made designs, therefore, are a part of this metabolism. As a result, materials used for producing man-made products must meet a certain standard of being biological nutrients. Those materials that do not meet this standard and cannot completely biodegrade within the earth must then be recycled, as technical nutrients, into other high quality materials for the next generation of products.

Product of Consumption

Externally Managed Components (EMCs)

Materials that get entirely consumed or change biologically, chemically or physically over the course the product’s life cycle. These materials then returned to the biosphere, either by nature or human intervention.

It is not always practically viable to assess every component of the product under a similar methodology. In a complex designed product, certain components are managed as a whole by the supplier or the third party. Since these components form a part of Technical Nutrient cycle, they are exempt from the standard requirement of full characterization to the 100ppm (parts per million) level.

•

Wooden Frame Product of Service

Materials or products that are provided to the user or leased by the user without conveying any ownership for the same. These are mainly comprised of Technical Nutrients that can be recovered at the end of product’s life cycle. While these products can often not be returned to the biosphere, they can be both catabolized (deconstructed) and anabolized (constructed). This can be performed through: •

Reuse

•

Physical transformation

•

Chemical transformation

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In order to be considered as an EMC, the subassembly, component or materials needs to fulfill the following criterias: •

The supplier of EMC should be able to provide the guarantee for taking back the material after the product life cycle and carrying out the required nutrient management.

•

The supplier should be providing a declaration stating that the chemicals in EMC are devoid of any negative impact on humans or the natural environment during the use of the product.

•

The EMC had passed through the testing by an accredited laboratory to ensure that no form of harmful substances are being emitted above the chemical’s analytical detection limits by the EMC.

Certification Criteria Cradle to Cradle certification is based on five categories of criteria and is scaled from Basic, Bronze, Silver, Gold, and Platinum, with Platinum being the optimal level of certification. In order to be receive certification, a product must be evaluated against these five categories (shown below).

Material Health The focus of material health is to know the chemical ingredients of every material in a product and optimizing towards safer materials.

The following criterias help in determining if the materials are apt according to the cradle to cradle standard. •

Materials used are either biological or technical nutrients.

•

Materials used should not fall under the criteria of banned chemicals.

The applicable material components of the Ground Control smart clock include wood and aluminium.

While wooden materials can be classified as part of the biological nutrient cycle, aluminium falls under the technical nutrient cycle. The sensors, batteries, and the embedded system within the products are considered EMCs. Material Reutilization The products under the screening for Cradle to Cradle are mainly evaluated for their nutrient potential and nutrient actualization. Therefore, it also

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includes the role of manufacturer in material/nutrient recovery. For this, the materials used must be able to perform at their optimum level and perpetually flow in their respective biological and technical nutrient metabolism.

As wood is a completely biodegradable material, it rates highest in this section. After the product life cycle, the same wood can be reused without much reforming. Aluminium is also one of most recycled and reused alloy materials in industries worldwide.

With NIXON undertaking the replacement of the the batteries in the clock, the old batteries can be removed and segregated in order to disassemble the parts and components that can be reused in future.

Renewable Energy and Carbon Management This category focuses on the use of renewable energy resources and reducing the level of greenhouse gas emissions produced during the manufacturing process.

In alignment with the middle and long term strategy in adopting more sustainable business practices, the NIXON manufacturing facility can be retrofitted with solar panels so as to reduce the use of electricity during manufacturing process. This will then aid in the reduction of carbon emissions. On the system level, the application on the GROUND CONTROL is focused on motivating the users to opt for sustainable practices, thereby contributing towards reduction in carbon footprint.

Water Stewardship Water is one of the most scarce and valuable resources on the planet. Thus, this category focuses on both the qualitative and quantitative measures of water usage and effluent runoff related directly to the manufacture of the certified product.

In the manufacturing process of NIXON’s GROUND CONTROL, the manufacturing facility is intended to take measures to not exceed the limit for discharge of industrial wastewater. In cases of any water shortages in the surrounding region, the manufacturer will also have to take water consumption into consideration. A water consumption audit and a statement of water stewardship will depend upon the manufacturer in order to be sanctioned.

Social Fairness The purpose of social fairness is to provide a qualitative measure of impact that the manufacturing process of a product has on the people, including employees, users, and communities, and the environment as a whole. It serves as means for ensuring that the business operations undertaken protect the value chain and contribute all stakeholder’s interests, which again includes employees, customers, community members, and the environment.

The NIXON company is mainly focused on the sports community related to surfing, snowboarding, skateboarding, and other similar action sports.

As such, the ambassadors of the brand are well known athletes. In addition to that, some of the ambassadors directly or indirectly work with NGOs for various social and environmental causes. One such NGO is the Rob Machado Foundation. This foundation works towards the development of ecoliteracy in students and community members and, through education, awareness, and the provision of necessary facilities, enabling them in the adoption of sustainable practices in their daily lives. One such example of this is by providing water bottle filling stations in local schools. This encourages students to reuse their bottles rather than

34

purchasing single-use plastic bottles. Therefore, in order to address issues concerning social and environmental stewardship, as part of the business model for the release of the GROUND CONTROL Smart Clock, NIXON will be partnered with the Rob Machado Foundation. For each clock sold, 10% of the proceeds will be donated to this organization, enabling NIXON to play a stronger and more direct role in establishing a strong community through their business operations.

NIXON, INC. These certificates are categorized according to the review of the products through five overall categories, including material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness.

According to the business model of the NIXON smart clock, the product and service is optimum for material health, material reutilization, and social fairness. Though renewable energy and carbon management are taken into consideration, official agreement for water stewardship is still uncertain.

Before applying for the Cradle to Cradle certification, NIXON will first need to conduct the self-assessment for each category on their own. While the Cradle to Cradle Products Innovation Institute does provide the standard requirements for each criteria necessary to determine certification levels and shortcomings, the information that is required on Nixon’s part is not that which is available to third party consultants at this time. That said, from the information available and with the recommendations provided in this proposal, GROUND CONTROL would certainly be able to acheive Bronze certification, if not higher.

CHAPTER 4: Consultation Materials

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1. AUDIO A

CHALLENGES

C L I M AT E CHANGE

ENERGY

WAT E R

BIO DIVERSITY

U

ASPEC TS

U

UPSTREAM

D

USER

Energy consumption throughout Total Life-Cycle and vulnerability to rising costs while remaining on established energy infrastructure

Global marketing campaign (digital); Material manufacturing; Online hosting; Retailers; Customer-service

Customer transportation and delivery (if ordered online); Recharging/replacing batteries (plus transportation if sent to company for replacement)

C o n t a m i n a t e d r u n o ff from buildings and parking lots; Water consumption throughout Total Life-Cycle

Water sources contamination (i.e., oil); consumption for manufacturing, operations (Leather + metals); sourcing (mining); retailers and in transportation

Consumption in cleaning product components

Chemicals leaching from batteries into groundwater; Product inadvertently sinking to bottom of body of water

Habitat destruction due to land use; Ocean a c i d i fi c a t i o n f o r e n e r g y consumption and GHG emissions; Chemicals and toxins spilled into eco-system

Mining, transportation, and manufacturing process resulting in increased land clearing and GHG emissions; Python leather bands

Microbial loss due to chemical cleaning p r o c e s s ; E ff e c t s generated from energy while charging batteries; Improper disposal of used batteries

Improper disposal of Current practices may a ff e c t r e p u t a t i o n ; non-biodegradable Regulations for and/or toxic 'ethical' practices to c o m p o n e n t s ; C h e m i c a l sb e c o m e i l l e g a l ; l e a c h i n g f r o m b a t t e r i e sC o n s u m e r s c r i t i c a l f o r into groundwater i n d i ff e r e n c e t o w a r d s ocean preservation Chemicals leaching into groundwater after disposal

AIR P O L LU T I O N

Solid Particles and Gases Released into Atmosphere throughout Total Life-Cycle (i.e., smog, CO2, factory chemicals, dust, mold spores, etc.)

Byproducts of material sourcing, manufacturing, and transportation throughout supply-chain

Customer transportation and delivery (if ordered online); Transportation for replacing batteries; Recharging batteries

Quantity/Quality of Waste Generated

Solid and toxic waste from manufacturing and material sourcing, battery recycling/management systems after replacing

Improper product and packaging disposal after its life-cycle

Residual CFC Use in Metal (steel) Manufacturing, Air Conditioning, and Refrigeration

Manufacturing and daily business operations

Customer use of air conditioning while traveling to retailer

Contamination and A c i d i fi c a t i o n o f O c e a n s throughout the Product's Total Life-Cycle;

Cargo shipping and transportation; Pollution from oil drilling; GHG emissions causing ocean a c i d i fi c a t i o n a n d s e a level rise

GHG emissions from customer transportation to and from retailer; Energy consumption required for recharging batteries

DEFORESTAT I O N

Launch initiative to Transportation to Carbon taxes and help suppliers limit l a n d fi l l i f d i s p o s e d o f i nc o n s t r a i n t s o n their GHG emissions; the garbage, as well as manufacturing and Sustainable materials transportation; p r o c e s s i n g a t l a n d fi l l alternatives. Use of Customers choosing recycled metals/minersustainable alternaals tives R e l i a n c e o n g r i d a n d Initiatives to lower Transportation to regulations of energy requirements for waste management infrastructure as it supply chain and f a c i l i t y i f d i s p o s e d o f i np e r t a i n s t o m a r k e t i n g , b u s i n e s s o p e r a t i o n s ; the garbage; Disposal customer service, Audit vendors and their practices of waste material suppliers, and processes; Implement retailers; Costs subject product buy-back management facility t o fl u c t u a t i o n s program

Customer transportation and delivery (if ordered online)

Material maintenance and cleaning

OCEANS

Supplier reliance on unsustainable material sources (leather, metal etc.); use of cardboard in product packaging; Use of various virgin wood materials;

Land Clearing for Facilities and O p e r a t i o n s ( O ffi c e Supplies)

Regulations for Greywater systems; Fluctuating cost and availability of water; water sources near factories; Implications of mining on brand image

Regulations on use of synthetic materials; Regulations on manufacturing and treatment of materials with chemicals

Byproducts released in Stricter regulation of pollution at any stage improper disposal at of product's total products end-of-life life-cycle and/or implementation of pollution mitigation taxes Disposal of product components and p a c k a g i n g i n l a n d fi l l o r oceans at end-of-life (i.e., metals, batteries)

Non-biodegradable waste streams; Balance of sustainability and luxury; Leaching of toxins in groundwater and oceans

I

Accidental or intentional losing of product in ocean by consumer (pollution); GHG emissions in product disposal at end-of-life Improper disposal of p r o d u c t i n l a n d fi l l s , eventually leading to n e e d f o r n e w l a n d fi l l s

X

Reuse or recycle water before regulations; Greywater recycling; Audit vendors/suppliers Rainwater capture, Recycled materials.

Raise awareness of manufacturing process on biodiversity; Help restore ecosystem; Transition towards recycled metals minerals; buy-back program Transition to bio-materials where possible (i.e., bio-plastics); Audit vendors; Research impacts of material sourcing; Implement product buy-back I n c r e a s e e ffi c i e n c y o f manufacturing and transportation to reduce all forms pollution; Decrease reliance on external energy suppliers; Implement product buy-back program Composting biological waste products; Recycling waste; Providing sustainable disposal options for consumers (i.e., product buy-back programs)

No control over CFC Set CFC emission emissions by suppliers criteria for retailers and consumers; and suppliers (Audit) Increased regulations of CFC emissions Decreased brand repuation if accident occurs; Neglecting key sustainability initiatives in sustainability strategy, especially as a surf brand Decreased brand reputation if accident occurs, Neglecting key sustainability initiatives in sustainability strategy; Environmental degradation

SOCIAL I N E Q UA L I T Y

N

OPPORTUNITIES

Supplier emissions from operations, including mining, transportation /manufacturing; farming for leather (i.e., methane); Energy for retailers

Use of Chemicals in Electronic/leathOperations and Battery er/plastic/metals Manufacturing component manufacturing process (i.e., tannin)

O ZO N E L AY E R

ISSUES

O

Emissions throughout Total Life-Cycle, including material sourcing, transportation, manufacturing, and energy consumption

CHEMICALS / TOX I N S

WA S T E M A N AG E M E N T

DOWNSTREAM

I

O

N

Commit to the use of plastic from oceans; S e t e n e r g y e ffi c i e n t criteria for shipping companies; Implement product buy-back; More preservation campaigns Implement sustainable packaging solution; Product buy-back program; Transition to sustainably sourced and recycled wood materials

- N ixo n digi ta l a n d An a lo g Wa t c he s .

- N ixo n M is s io n

Products & Services

Pain Relievers

- P er fo rma nc e me as ure me nt - P er fo rma nc e t o o l s - O ut do o r t o o l s - B ra nd A mbas s a do rs a tt ribut es pas se d t o in s pire co ns umers - S ty le ic o n ic mo del s (T ime T e lle r)

- A ffo rda bl e f o r y o un g p eo pl e - W at ch es a s a s t a t eme nt f o r pe rs o na l s t y l e - T r adi t io n o n S ur f, S no w bo a rd a nd S ka t e - W at ch es t ha t c a n go f ro m a dve nt ur e t o w o rk w it h o ut ch an gin g o r sa c r ifici ng s t y le .

Gain Creators

THE LUXURY BRAND FOR SURFERS AND SNOWBOARDERS

THE VALUE PROPOSITION CANVAS

Improving activity performance More time outside Group acceptance Social life milestones Credibility with peers More adventurous outings.

Job(s)

- Sea rc h f o r in div idua l it y , l ibert y , in depen den c e.

- A c h iev e ba l a n c e bet w een w o rk a n d pers o n a l l if e.

- In s pire o t h er peo pl e by bec o m in g t ren ds et t ers .

- C o n v in c e o t h ers a bo ut t h e u n ique s t y l e a s a refl ec t io n o f t h eir w o rl d v iew .

- Sh o w t h ey a re a dv en t ure s eek ers - B el o n g in g - K eep t ra c k in g o f t im e t o m a in t a in t h eir l if es t y l e.

- S o m e t i m e s t h e g r o u p I w a n t t o b e in , is exclusive.

- I have to buy things to achieve my personal style.

- Fashion trends go fast

- M y w o r k t a ke s t i m e a n d r e s o u r c e s t o achieve things for my personal life - T h e b r a n d s I l i ke , a r e p r i c e y , a l s o m y sports equipment

Pains

-

Gains

YOUNG ATHLETES AND PEOPLE WANTING TO BELONG TO BEACH AND SNOW SPORTS

2. Value Proposition Canvas

1

2

3

4

The grey area is where most of the brands are. Is a space where the market is saturated. The upper mainstream market has only two brands (fossil and garmin) striving for sustainability, Nixon has a blue ocen to pursue this or even achieve more in the same field.

Nixon MVMT

Garmin Fossil

5

BLU E O CE AN STR ATE GY C ANVAS

3. Blue Ocean Strategy Canvas

Digital, analog and smart watches

Provide style and status for surf and snowboard

Sales channels

Bags and other accesories

Packaging

Watch Design

Diversified sales channels offering

Events and tournaments

Multiple modes of Payment

Customer service

Website

Stores worldwide

Warranty

Social Responsibility

CRM Strategies

Stores and Malls

Internet sites

Specialized stores

E-mail

Call center

Accesibility User contributions Enhancing Service

Interactions

Call center and user

Advertising and user

Enabling Service

Core Service

Automated e-mail service

Social Network Channels

Watches technology and the user

AUGMENTED OFFERING MAP

Return policy

SERVICE OFFERING MAP

Social Networks and user

Stores and User

Site and user

Sales managers insights

Customer surveys

Returnings and quality feedback

Ambassadors input

Customer inputs in call center

Social networks comments

4. Service Offering Map

5. Stakeholder Engagement Map STAK EHOLDE RS E N G AG E M E N T MA P

Co n n e c t

Co l l a b o rate Idea Generators & Opinion Leaders

Surfrider Foundation Surfing for Change Saves the Waves Coalition WiLDCOAST 1% for the Planet Sustainable Surf International Surfing Association Surf Aid International Surfing Heritage Foundation Keep A Breast Sumba Foundation

A Blog to Watch Watch Time Tech Crunch ISPO Surfer Magazine Surfer Today World Surf League Surfline GrindTV

Business Part Employees Ambassadors SIMA Nordstrom Burton

Local Surf & Skate Shops Adidas PAC SUN Dillards Tilly’s Macy’s

Saks Bloomingdales Amazon Zumiez

Idea Generators & Opinion Leaders Forbes Financial Times Business Insider

Communtiy/Consumers Surf, Skate, Snow (with emphasis on those 25 and under) Founders

Key Issues: Industry Associations Federation of Swiss Watch Industry American Watchmakers Clockmakers Institutions (AWCI) National Association of Watch and Clock Collectors Antiquarian Horological Society American Watchmakers Association

Regulations Brand perception

Institutional Investors Competitors

Rulemakers and Watchdogs Social Accountability International (SA8000) RJC International Organization for Standardization (ISO) State of California Congress (Tariffs)

Andy Laats Chad DiNenna

Trilantic Capital Partners

Apple Garmin Suunto Columbia G-Shock Fitbit Ripcurl Timex Freestyle MVMT

M o n ito r

D e fe n d

Issue Intensity

Potential for Collaboration

NGO’S

6. sSWOT s SW OT Near Term:

ACT

Long Term

Middle Term:

Review business practices by collaborating with the ambassador

To develop and release a new product line associated with the NGOs to advocate for environmental protection and incorporating the sustainable solutions that preservation leading to greater sustainability efforts. This will help Nixon were developed as a result of the near term

To use a new approach towards designing business model for

establish reputation as a sustainable brand.

goal. The product can act as a means of

practices developed by the company through the near term and

motivation for the users to adopt

middle term goals, thereby addressing the triple bottom line of

sustainable behaviour in their daily lifestyle.

people, planet and profit

incorporating circular economy for Nixon products. This business model will reflect the environmental and socially responsible

PRIORITIZE

2. Transition towards use of recycled materials for product manufacturing and increase transparency of sustainable business practices

1. Advocating for environmental preservation and conservation through partnerships with NGOs, especially in regards to water conservation and clean oceans as a surf brand

3. Spread awareness to consumers of material recycling at end-of-life

THREATS Environmental degradation and contamination Climate change Resource scarcity Market saturation Technological innovation Lack of sust initiatives on brand reputation Increased regulations Cost fluctuations of materials and energy

STRENGHTS Affordability Recycling of precious metals and batteries E-commerce and marketing Targeting youth Ambassadors Global surf brand Style Performance # of collections

WEAKNESSES Lack of sustainability initiatives Lack of partnerships High transportation costs/material sourcing Very specific targeted audience Reliance on grid for energy production

OPPORTUNITIES Audit material sourcing

Collaborate with NGOs to spread awareness and increase brand value

Reduce reliance on nonrenewable energy

Closed loop material flows

Reduce waste streams

Reduce GHG emissions and energy consumption

Advocate for environmental protection and preservation

Adoption of sustainable material alternatives

Technological innovation

Increase efficiency of manufacturing and transportation processes Implement a product buy back program

ENVIRONMENTAL CHALLENGES AND BIG TRENDS Global political and economic instability

Decreasing reliance on nonrenewable energy sources

Regenerative business practices (soil remediation, ocean clean up, and reforestation efforts)

Climate change

Increasing social awareness and responsibility

Addressing UN SDG’s through partnerships with NGOs

Digital marketing and technological innovation

Exponential growth of population, especially the middle class

Internet of Things

Urbanization

Shifting of consumer behavior (individual + environmental health)

Waste management: Reduce, Reuse, Recycle

References • • • • • • • •

Switch: How to change things when change is hard.(book review) (2012). American Association of Critical-Care Nurses. http://www.nixon.com/us/en http://www.swatchgroup.com/en/group_profile/corporate_responsibility http://www.casio.com/news/detail/casio-included-in-the-dow-jones-sustainability-world-index-for-the-first-time http://www.cartier.com/en-us/maison/commitments.html https://www.omegawatches.com/planet-omega/social/ C2CCertified_Product_Standard_V3_Amended_Nov2015%20.pdf http://www.c2ccertified.org/resources/collection-page/material-health-certificate-resources-public