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Vending Machines

Essay by   •  March 5, 2018  •  Case Study  •  1,582 Words (7 Pages)  •  821 Views

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Vending Machines

After 1960s self-operating machines took over major part of the industry, roots of which can be easily tracked down to the concept of Fordism where Ford first introduced assembly line. This assembly line concept grew great in minds due to its convenience and much efficient outcomes. Same concept transmitted in discovery of finding man-less solutions to most of the production industry. Advance countries like Germany, America and Japan soon realized that this could be another big boom in consumer market. Soon world was introduced to automatic machines used in production industry. The concept out grew in service industry and Modern Vending Machine was invented. Not to mention vending Machines are also said to be the first invention in list of automated inventions which is trackable back to the great Greek era, the first VM served similar purpose but was operate able without use of electricity and was only mechanical in its working.  Other examples which work on the same principles are, joy land rides. You put a cent in it and it ride goes off. Similar concept was used in working of vending machine but this time it’s much advance and works on modern principles and technology. Vending Machine serves a timeless solution to buy snacks and coke and could be installed at any place of convenience. Biggest advantage remains that it is reachable 24/7 and not to mention operational cost was much lower than a retailing stores. First few companies to pick up the concept were soft drink companies and beer vineries. Vending machines took over the market in no time and its placement was to be found everywhere. It started from Airports and subway stations and soon in central malls and sidewalks.

Today Vending Machines are found globally except few south Asian countries and other underdeveloped nations due to illiteracy to operate basic VM. VM now serves more purpose than just snacks and cold drinks. It is speculated that in years to come VM will take over the retail market and business will earned from VMs. Countries with most number of Vending Machines are US, Australia, Netherlands, China and Japan along with few other European countries and it is used in all sort of blue chip organizations along with corporate sector. It is much cheaper to place a VM instead of traditional café which requires more space and human resource.    

ABCVM

ABC VM is the first and major breakthrough in the vending machine industry of Pakistan. ABC Vending Machine has been in business for over decade now, making slow but gradual progress. The owner XYZ Pakistani expat living in America, identified a big gap in Pakistan’s retailing approach. Despite the fact the first 10 years of 21st century has been a technologically revolutionizing period for Pakistan yet most of the market was still running traditional retailing stores approach and to great extent they still are. When XYZ experienced the convenience of Vending Machine while purchasing simple can of coke he could already tell that this is something which will completely change the market trends and this is what market has been longing for ages. This convenience model couldn’t be introduce at every corner of the country yet had a huge scope in KLI, Karachi, Lahore & Islamabad. In 2007 XYZ started this venture and named it as Aruba Vending Machine. This business model is unique and covers A to Z business requirements. Importing parts, assembly of Vending Machine and retailing of FMCG products that the machine withholds along with support services all are responsibilities of ABC VM. He calls it ABC VM’s unique selling preposition, “installation, configuration & Maintenance”. If we put it in simple words it’s a retailing model for FMCG products, mostly snacks, soft drinks and to some extent hot drinks. Items are dispensed from a vending machine, which is easily operate able and provides a cashless and timeless solution to its users.

Situation

Where innovation stays an important and crucial determinant which set the level of competitiveness and successfulness of an organization, XYZ has very clear vision backed up by great innovative idea how to recreate Pakistan’s retailing concept. The dimensions of measuring service delivery have changed or if we put it more correct words have been enhanced over the years. Consumers have a very busy life style, it is much convenient to have timeless solutions for their daily snack shopping and it is phenomenal to find a cashless solution alongside. This is the thought that developed in XYZ’s mind which made him hold his ground and he made a decision to bring this concept to Pakistan. However the things in country were quite different as he thought, he already was going against the traditional values and set norms of market. FMCG market is huge in Pakistan and those who are running it are afraid to change the norms. The retailing model mostly consist of sole proprietorship and one sales boy alongside. There are no record of sales and thus taxes are saved. More than that it takes zero percent technological literacy to purchase FMCG products from a retailing store. Keeping all these things in mind XYZ was sure that this is not something he would like to start from the traditional market and scrutinized it to be a corporate venture. He started his marketing from different blue-chip companies. Slowly and gradually his numbers increased and things started coming his way.

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