“business Machine Vending” Marketing Case

It seems that first in designing an own strategy of business machine vending was the Cocaine directors Tail, because they acceded in a moment to the distribution of his product through system of spending machine, vending machine. Nevertheless the specificity Coca Cola, makes that its philosophy of marketing associated to his business machine vending, is so genuine, that he is not extrapolable to other sectors nor to other products. In another article “Coca Cola Vending Machines a Star of Marketing” we have reflected with detail on this case, so we were sent him.

In general machine vending, is successful in the measurement in which he is able to break with the habitual chain of distribution, because it makes possible access to points of sale, in which is generally impossible to accede with the traditional methods. Typical example of it is the presence of vending, in strange points to the distribution channel, we can find business machine vending in medical doctor's offices, clinical of veterinarians, hairdressing salons, institutes or courts.

Another aspect of business machine vending that reinforces its successful, consists of the low costs of maintenance that it is, simply of paying a rent by the space that takes care, and of replacing the products that it provides.

But business machine vending also has weak aspects, among them we can emphasize:

1. Business machine vending is very associate to products of consumption very known. It is precise that it is therefore otherwise will not wake up sufficient confidence in the consumer.

2. Business machine vending serves to reinforce the channel of distribution of marks consolidated in the market. The buyer makes its election of which machine offers business to him vending, based on the previous knowledge and confidence that to him the supply of a well-known product lends.

3. Business machine vending can serve to reinforce the presence of products and new marks, but only referred to products with a high level of substitution. It is possible that through business machine vending is sold well, for example, a new mineral water mark, given to the high level of existing competition in the sector and the high substitution of marks by which it is made in the market. Nevertheless for this type of products business machine vending can be prohibitive, because the commercial margins that are handled are small, so that to accede to this type of distribution it can be especially expensive.

4. Business machine vending seems to have its products very appraised, is frequent to buy refreshment, a soda water, snack through vending. But business is not used machine vending in the supply, for example of detergents or creams to shave. As is the reason for it? If we thought that business machine vending must satisfy an urgent necessity, it is easy to understand that this one must be primary, immediate, reason why the success in the supply is associate to basic physiological necessities, to eat, to drink.

5. Business machine vending has not been successful in sectors different from those from the basic consumption. Years ago the possibility existed, for example, to buy photographic spools in this type of vending, nevertheless the users complained the quality of the product. It is possible that some machine vending did not supply the same quality of the photographic films, but in essence the product was he himself.

6. Business machine vending has tried to introduce itself in other sectors, for example the rent of videos, but its success has been little. The consumer preferred to accede to the traditional store, to be able to touch, to have in his hands the video that is going to rent, before to obtain it by means of vending.

7. Business machine vending is in experimental phase, in new products, that accede to him, for example: the sale of ipod through vending machine. It is soon for analyzing its results, but we are afraid that the success is little probable.

Before all these explanations it is possible to ask, what is business machine vending? The answer cannot be other than to define it like a system of product distribution, outside the habitual channel, limited, at least at the moment, to consumption products, previously known, and that has generated sufficient confidence in the consumer, so that they allow to his purchase through vending machines.