Automatic Merchandiser

MAY 2012

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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R O A D MA P TO CHANGE V-Engineering concept overview (continued) PRODUCT OFFERINGS While often the products available for sale are the result of the preferences of the route driver, societal pressures have helped promote a healthier product offering throughout the vend- ing industry. The next phase is likely to include fi ndings based on analytics aimed at profi ling offerings to a target audience based on an array of criteria. OPERATIONAL PLATFORM Since the late 1980s, the industry has measured vending performance and security on a DEX standard. As applications become more stream- lined and sophisticated, there is consideration of alternative operat- ing platforms that are less propri- etary and rigid. Moving forward, the implementation of open architecture formatting will drive development. a vending machine into a large-scale video terminal equipped to promote on-site merchandising while providing a source for product ingredient and nutrient disclosure along with incre- mental revenue from advertising. Digital supports wayfi nding The use of signage to direct people in an unfamiliar area is termed wayfi nding. The advent of digital signage adds a new dimension to wayfi nding by enabling visual pre- sentation of maps and schedules. New, data-driven, wayfi nding systems operate dynamically to determine the best route based on current conditions. This concept of "smart" wayfi nding is expected to change how wayfi nding is deployed and managed in all industries, including the vending industry. For example, a smart phone application may identify the nearest vending machine, and category of products sold, to an inquiring con- sumer. Or a high defi nition audio- 54 MACHINE MANAGEMENT Placing vending machines online provides the basis for improvements in productivity and profi tability. The transitioning from a handheld device, to remote machine monitoring, to cloud-based computing is perhaps providing the most signifi cant changes. PRODUCT REPLENISHMENT The use of fi xed machine visitation scheduling has begun to yield to dy- namic scheduling based on machine notifi cation of the need for a service call, product replenishment, or emer- gency alarm condition. The next level of development includes self-diag- nostics leading to automatic repairs and remote corrective actions. MACHINE LOCATOR Knowing where an operator's fi eld placed assets reside is important, but what may be more important is informing or directing consumers to the machine to make a purchase decision. A machine locator applica- tion for the smart phone is expected to help drive traffi c and sales. EXPANDED PAYMENT OPTIONS Transforming the vending retail expe- rience to mirror traditional retailing will contribute to an expanded level of payments from cash, currency, and electronic transactions to mobile payments via cellular and cloud- based computing. Mobile payments provide multiple features associated with e-wallets (payments, coupons, rewards, incentives, etc.). video presentation can be used to capture consumer attention and thereby drive traffi c to the machine. Once in proximity to the machine, the display can promote products sold through the machine (targeting specifi c items for promotion based on consumer and time of day). Nutrient and ingredient data can be presented for any item or the buyer may be able to use an on- board search engine or component fi lter to identify qualifying (e.g., low calorie) items for purchase. In addi- tion to item promotion and sales, incremental revenue may result from advertisements and event pro- motions appearing on the machine supported digital screens. Product recognition concerns The need to display product nutri- ent and ingredient data has started taking on signifi cant importance in the vending industry. Government regulations designed to assist con- sumers in making more informed Automatic Merchandiser VendingMarketWatch.com May 2012 product choices will soon be man- dated, requiring vending operators to provide accurate item informa- tion. How can a vending operator have confi dence the data provided will match the identifi cation of each product in each facing? These concerns can be addressed and resolved through product recognition technology to specifi - cally determine the content of each product in each spiral in real time. A future article will examine cloud computing, remote monitoring, hosted systems, mobile payments and location based services. ABOUT THE AUTHOR Michael Kasavana, Ph.D., is the NAMA endowed professor in hospitality manage- ment at Michigan State University in East Lansing, Mich. He has been researching vending technology for several years.

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