UNIVERSTY OF TECHOLOGY MARA JOHOR BRANCH PASIR GUDANG KAMPUS

CENTER OF CHEMICAL ENGINEERING STUDIES

DIPLOMA IN CHEMICAL ENGINEERING

SUBJECT:
CREATIVE AND CREATICAL THINKING (MGT315)

ASSIGNMENT 4:
INNOVATION ON PRODUCT OR SERVICE

PREPARED FOR:
DR. SITI NUR AISYAH BINTI ALIAS

SUBMISSION DATE:
28th JANUARY 2023

PREPARED BY: J4EH1105C

NAME OF MEMBERS STUDENT ID
MIA BATRISYA BINTI BADRUNNIZAM 2020471706
SITI AISYAH BINTI ADNAN 2020852648
NURUL NORAINI BINTI GHAZALY 2020863336
NURUL ZUKRINA BINTI MOHD ZAWAWI 2020827506
NUR AFIFAH BINTI ROSEDIN 2020616992
TABLE OF CONTENTS

NO. TITLE PAGE

1. INTRODUCTION 3

2. PROBLEM STATEMENT 4

3. PRODUCT/ SERVICE’S/ NOVELTY (INNOVATION) 6

4. PRODUCT/ SERVICE’S FUNCTIONALITY 7

5. PRODUCT/ SERVICE’S COMMERCIALIZATION 8-9

6. CONCLUSION 10

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1.0 INTRODUCTION

Trash is valuable. PET (polyethylene terephthalate) plastic bottles are worth recycling
because we can keep them out of our precious oceans and save 100g of carbon for every litre of
the plastic bottle we recycle. By educating people about recycling, providing incentives for doing
so with the aid of our Smart Reverse Vending Machines (RVM), and developing a digital container
deposit programme, we can reduce the amount of plastic, aluminium and other recycled items that
might end up in our landfills and seas.

Reverse vending machines (RVMs) accept old and empty bottles and cans for payment or
other incentives, depending on how many containers are recycled. The RVM's goal is to lessen
and recycle the roughly 1.4 trillion beverage containers that customers use yearly worldwide. Most
beverage bottles that cannot be recycled are strewn across fields, dumps, seas, and rivers. The
RVM provides incentives for recycling in an effort to reduce this waste. Depending on where the
machine is located, these incentives might take the form of cash back, charitable contributions,
metro transport tickets, pre-paid phone cards, or reduced prices on amusement park tickets. Users
are probably more motivated to recycle due to these incentives because it helps the environment
and them personally.

A sequence of procedures is used to run the reverse vending machine. The recycler starts
by inserting recycled goods into the receiving hole. The item must be separated based on the
specified categories. Then, the recycled goods will be weighed or counted according to type based
on the system set by the factory to keep track of how many items the recycler is turning in. The
recycled goods are then reduced in size so that the reverse vending machine can store more of
them. After that, recyclers can select the desired return they want.

The use of reverse vending machines has various benefits. Two advantages are recycling
materials and lowering the need for raw materials to produce new beverage containers.
Additionally, RVMs are conveniently positioned in public areas like supermarkets, petrol stations,
schools, parks, and other similar establishments, making them accessible to users. In addition,
RVMs have a huge capacity, which implies that they can store much material before emptying.
They are not large devices, so they do not occupy much room, even if they can contain a lot of
recyclable materials.

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2.0 PROBLEM STATEMENT
This report was written with the intention of proposing an innovative method to assist the
government in achieving its goal of making Malaysia one of the cleanest countries in the world,
as many individuals continue to litter and improperly recycle rubbish. Despite the government's
numerous attempts to resolve this issue, the country continues faces the same challenge. Therefore,
we developed this Vending Machine service to assist the government in resolving various
challenging issues, such as:

2.1 The Increasing of Waste Disposal in Malaysia.

` Figure 2.1. The waste generation data calculation in Malaysia.

The increase in waste disposal from year to year has increased the concern of the superiors
when many Malaysians have not fully grasped the importance of waste management and the idea
of recycling despite countless national campaigns and enforcement efforts over the years. Several
efforts have been introduced to increase the country's recycling rate, including community
awareness campaigns, expanding public recycling facilities, and implementing programmes such
as Trash to Cash (T2C), where this initiative allows people to either trade in or sell recyclable and
secondhand products. However, more than this effort is still needed to achieve the desired results
when the amount of waste disposal is more than the amount of recycled waste produced.

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2.2 Lack of Interest in Recycling the Waste.

Figure 2.2 A newspaper cutting about the 12th Malaysia Plan.

The lack of awareness of society in recycling waste also becomes an issue when people do
not implement the benefit of recycling in their daily life. They prefer to throw away their trash
because they think it is useless. This issue becomes problematic when the 12th Malaysia Plan
targets a 40% recycling rate by 2025. According to the University of Putra Malaysia (UPM)
environmental governance expert Associate University of Putra Malaysia, Prof Dr Haliza Abdul
Rahman, achieving the goal during the next three years will be difficult. Based on her assumption
about Malaysians' limited participation in recycling programmes, she stated that the aim to reach
a 40% recycling rate by 2025 is almost impossible to achieve and can only be met if progressive
actions are taken seriously, and individuals commit to recycling efforts.

2.3 A Way for Homeless to Find Readily Accessible Food by Points Redemption

It can be seen as an opportunity for those out there especially for the homeless to get a
source of food. As we know, most of the people who don't have a job will collect these used items
to sell at recycling centers to get money to buy food. So, this is an opportunity for them to get food
because our items are easy to use and will turn recycled items into food. With that, it is to some
extent able to help people out there who cannot afford to buy food. It may seem insignificant to
those who are wealthy and employed, but for a tiny percentage of people, it may assist them to
continue living and, in some cases, even help them escape the poverty cycle. As the saying goes,
‘One's man trash is another man’s treasure’.

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3.0 PRODUCT’S NOVELTY

Reverse Vending Machine can be separated from ordinary vending machines and are more
efficient. The following are some of the most impressive novelties of this vending machines.
Firstly, this vending machine use AI-Powered Approach where vending machines utilise artificial
intelligence and analytics to evaluate device data to sense and give customised experiences. They
can provide valuable customer information to the seller. Other than that, this machine offers two
built in vending, one part of the system is for donations section while the other side of the block is
for points redemption.

Aside from that, this vending machine uses Sensing technology to check the weight and
conditions of donated products in order to maintain the quality of perishable items. For instance,
when a person inserts two kg of old clothing, the AI sensing technology built within the machine
will instantly convert the data into five points worth one ringgit each. These points are earned on
"member cards" and may be redeemed beside the charity area and indeed the food area, where
food prices are presented. In other words, the food may be obtained by redeeming points, which
can be earned by donating a specified amount of garbage or used clothing into a charity machine.

In addition, unlike conventional vending machines, our consumer data is utilised to

guarantee that vending machines are adequately stocked, and data analytics are employed to track
and manage inventory. In addition, this machine offers remote monitoring from home and can
forecast maintenance based on its state without any effort. This might prevent vending machines
from malfunctioning and increase their efficiency. Additionally, repairs and maintenance may be
done without effort. Any issues that arise can be resolved remotely. Finally, plug-and-use Reverse
Vending Machines are now available, meaning that once plugged into an electrical outlet, the
machine is ready for usage.

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4.0 PRODUCT’S FUNCTIONALITY

The mother of all inventions is necessity. Thus we propose a sustainable and novelty way
of reducing waste by the existence of Reverse Vending Machine. Firstly, the products’
functionality consists of Digital Touchpads and touchless displays are used to navigate the menu,
view product details, add multiple foods to the cart, add up the product list and messages.

Other than that, we employ transactions that are both quick and secure: UPI, Debit/Credit
Cards, Net Banking, TNG Wallet, Identification card, Member Card and other digital payment
alternatives are available on Reverse Vending Machines. This cards firstly must be registered
beforehand before using it as point collections card. The specialty of including Identification Card
as one of payment method/ point redemption method is because all people of diverse income levels
could be use anytime and anywhere.

Not only that, this machine uses real-time data to improve decision-making and
profitability. Processes credit card and debit transactions swiftly and securely from any location
by utilising security and authentication. Built-in security mechanisms reduce cheaters and product
loss. Next, is Contactless Ordering, It was introduced after Covid to provide consumers with safer
purchasing options. It communicates wirelessly via a mobile app provided by scanning the QR
Code provided labels on the machine display. The transactions are all contactless, which has
become increasingly significant post-Covid. Refunds are performed automatically in the event of
a failed or cancelled order.

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5.0 PRODUCT COMMERCIALIZATION

5.1 Target Market

Our target market includes people of all ages and genders. This means that everyone who
supports protecting the environment can donate their recyclables in exchange for anything
offered in the vending machine. This is due to our desire to make it simpler for the general public
to recycle and donate their empty bottles by offering them something in return that will motivate
them to donate more.
In order to gain profit, the reverse vending machine’s primary target market is the
Malaysian environmental companies such as Jabatan Alam Sekitar, Sahabat Alam Malaysia
(SAM), and Consumer's Association of Penang (CAP), who share the same goals to ensure
sustainability for the benefit of the future. Indirectly, this will assist the planet in reducing the
increasing amount of recyclable waste ending up in landfills.

5.2 Selling price

The product sells for RM10, 000 including its installation fees. This is a good price because it
is a digital vending machine with touch screen compared to an average vending machine that is
retailed at averaging RM7,000. Our vending machine is made of high quality and long-lasting
materials such as galvanized steel. The steel used has extended durability, formability, and strength
of steel with and anti-corrosion due to its zinc-iron coating.

The product's price, including installation fees, is RM 10,000. In comparison to the typical
vending machine, which costs around RM7,000, this is a decent price for a digital vending machine
with touch screen and pre-installed software that will ease out the sorting service and payment
methods. Materials of the highest quality and durability, such as galvanized steel, are used to
construct our vending machine. Due to its zinc-iron coating, the steel used has increased
formability, and strength of steel with corrosion resistance.

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5.3 MARKETING STRATEGY

Digital marketing is one of our marketing tactics. A prime example of digital marketing is
through the use of social media, which has 3.5 billion users across all social media platforms,
is one of the best tools now accessible to environmentalists, according to a 2019 study.
Therefore, an effective social media strategy is the best way to increase our audience and
support environmental causes. As a result, we can benefit from social media by using it to
promote our brand, spread knowledge, and encourage others to take action in response to
environmental challenges. A strong digital marketing plan is essential in the current digital era.
Thus, the best platforms for our product are TikTok, Instagram, Facebook, Twitter, and
Carousell. By using these platforms and implementing a good media strategy along with
producing interesting content, we are able to reach a larger audience by interacting directly
with our potential customers as well as encouraging people to donate their recyclables. Another
example of digital marketing that can be employed is the usage of search engine optimization
(SEO) and email marketing. Additionally, a great website that is simple and mobile-friendly
devices will encourage more customers.

Distribution strategy is also important in the vending machine industry. This is to test the
market to see whether or not it is suitable to be placed there. Not only that, it will also attract
passersby who haven’t heard about the product. This could also add potential new customers
as they can also spread the word of the existing place of the vending machine through their
socials, relatives and friends. Through this as well, when the usage of the reverse vending
machine is high, this can be presented to companies that the product is attract in luring
customers.

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6.0 CONCLUSION
As a conclusion, this vending machine provides its priority service to help the government's
mission to achieve the country's well-being. In addition, this service can also help in giving the
best effect on the environment, society, and economy.

For the environment, implementing this service could help reduce the percentage of waste
disposal by society because people will no longer throw away their trash in public. They will use
this vending machine service to recycle the junk they have. With that, this effort's results can help
to reduce the habit of people who like to throw away their garbage and ensure that the country's
environment is always clean and safe from all kinds of pollution.

Furthermore, these vending machine services also can have an excellent impact on society.
People in Malaysia will start applying the feeling of love in themselves to recycle their garbage
because they can exchange their waste with food vouchers according to the predetermined
quantity. This service is also to be used by the community because they can find this vending
machine wherever they are, whether in shopping malls or residential areas. In addition, it can also
help people in need to get food. As we know, the price of goods in our country is increasing
including food. Therefore, this service is also suitable for everyone's use because it does not use
any payment charges and does not use technology such as mobile phones to use this vending
machine service.

The last one is for the impact of this service on the economy. Many people think that
recycling is just an activity to help in reducing waste. But recycling also becomes a profitable
commercial sector that earns more economic value each year. Recycling generates tax revenues to
support government services, such as transportation, public health and safety, and social services
programs. With the help of this vending machine service, more people will start to recycle their
waste, and the total of waste disposal will also begin to decrease. In this way, it helps in saving
costs to control pollution and saves money on trash disposal costs like landfills and incinerators.
As fewer landfills are required, more land may be put for productive use, saving money on space
and increasing income.

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