...COLA VENDING MACHINES COCA COLA VENDING MACHINES 11/22/2015 Selling coke through interactive vending machine a good or bad idea? From the coke’s perspective, selling through vending machine is a good idea because they have earned higher margins for the firm. This channel has been untouched by the price wars unlike the distribution through supermarket where price wars have lowered the margins considerably. Sales of soft drinks from vending machines have risen steadily over the last few years, though most sales still take place in supermarkets ( in 1999, 11.9 percent of soft drink sales worldwide was generated by the help of vending machines). Vending machine isn’t a costly machine. It can be installed in any corner of schools & colleges, offices and mall. An interactive vending machine again is not a big cost to the company since cost of computer chips have fallen and uses a temperature sensor that raise price of soft drink when it is hot outside. This strategy is known as price discrimination i.e. charging different prices to different consumers depending (in this case) on the time of the day consumer purchases the drink. In economics, it is shown that price discrimination increases market efficiency and company should take steps to increase market efficiency. Price discrimination is now prevalent in almost all kind of business, especially the web based businesses. However, what customers perceive matters the most. If coke introduces a machine as mentioned...
Words: 861 - Pages: 4
...about Coke’s new vending machines or smart vending machines that are able to automatically change prices according to ambient temperature. How it works: ▪ If the temperature is high then price will be high. ▪ If the temperature is low then price will be low. Coca Cola tried to maximize profit from these smart vending machines, after facing war price in supermarkets. This practice is called price discrimination, where a company is charging different prices for the same product to different consumer. In the Coke’s vending machine case, the differentiation is on how consumer values cold drinks in different weathers. Benefits of Smart Vending machine: o Increasing sales by providing discounts in off season or when there is less traffic. o Facilitates micro-marketing and understanding the local consumer. o Help the company to manage logistics and capture real time data for analysis. o Increase profit as it remains untouched by discount war. o Improve product availability, promotional activity and even offer consumers an interactive experience when they purchase a soft drink from a vending machine Rationale behind the move: ▪ Price Discrimination: selling the same product to different group of buyers at different prices. “Hot” day v/s “Cold” day prices. ▪ Economic Rationale: -Higher price (hot) = higher profit. -Lower price (cold) induces sales = higher profit. Problems with coke’s new vending machine strategy: ...
Words: 839 - Pages: 4
...Executive Summary Introduction Chef Vending (Chef), LLC is a family start-up business that specializes in importing vending machines and commercial food and beverage equipment from Spain. Chef will penetrate the vending industry with innovative, first to market, high quality vending machines. Chef will establish our own vending routes in the Southern and Central Florida region. Chef also plan to participate in the $321 billion food and beverage industry by supplying high-quality innovative equipment. With the establishment of one strategic alliance with a national brand name in either of their vending lines, Chef expect to easily exceed the financial forecasts. The Company Chef Vending's mission is to be the leader in introducing innovative, quality vending machines and restaurant equipment to the market. Through close customer contact and excellent relationships, Chef will meet the needs of the customers. Chef Vending, LLC, is a privately-held Florida corporation and maintains an office and a small warehouse in a mixed-use area of North Miami Beach, Florida. Three of the four investors in the company have full operational responsibility. Mauricio Ordonez and Javier Palmera, the co-founders, have both entrepreneurial and industry experience. Charles Mulligan brings operational management, marketing, and financial skills to the operation. The Products Chef Vending will have two product lines, each for the various markets it serves. The vending products line will include the unique...
Words: 3839 - Pages: 16
...BSB 126-‐ Marketing Plan Name :x I. Student number:x Word Count: 1650 Situation analysis An average Australian eats fast food every week and a report has shown that Australians make 51.5 millions visits to have fast food every month (Holroyd, 2011). The Hot Fresh Fries Vending machine provides convenience for consumers as people can easily access to hot chips. A SWOT analysis (appendix 1) has revealed both the potential and weaknesses of this new innovative machine. However, there are some environmental factors that can also affect the business’s operation. Macro environment factors: Demographic forces make up the market segments therefore it is an important factor to a business. It includes age, gender, ethnicity, location, lifestyle and other statistics. Social and cultural factors: The changes in social trends, consumers’ values and beliefs can impact on the demand of a company’s products. For example, there is a growing consumer awareness of healthy eating (IBISWorld, 2015), which could affect The Hot Fresh Fries Company. Micro environment factors: Customers has a huge impact on the business directly as they are the people who purchase the goods. Therefore knowing their needs and wants are critical. The Hot Fresh Fries is a B2C business which means the company needs to market to the consumers. Competitors are those who sell similar products in the market, such as McDonalds and Hungry Jacks. In order for a company...
Words: 2371 - Pages: 10
...MARKETING PLAN COMPONENTS Marketing plans vary by industry, by size of company and by stage of growth. The form isn't as important as the process of preparing it. Preparing a marketing plan is a process that makes you think about your business goals and what your marketing strategy will be to achieve those goals. This is an outline of a typical marketing plan. Your marketing plan may contain all or just some of these components, depending on your company type, stage of growth, and goals. I. Executive Summary Introduces your company and explains the major points of your plan * Briefly describe the nature of your business and the products or services you offer. * State your mission and company objectives * Describe your management and marketing team, and the structure of your organization * Summarize the marketing objectives and strategies contained in the plan II. Current Situation Provides information about your location, target market and competitive environment. Also, identifies key issues your company faces. * Describe your current or planned business location. * Describe you target market. * Include a brief competitor and issues analysis. III. Competitor and Issues Analysis The details. * Include information about other individuals or companies (competitors) who offer similar products and services as you. * List key business issues that are potential challenges, such as new legislation or the impact of an impending technological...
Words: 5005 - Pages: 21
...turned and split in half to share between friends. This idea has further increased the popularity of Share a Coke and has contributed to the overall success of the campaign and the brand as a whole (Outside the box, n.d). This is not the only angle of the “Share a Coke” campaign. Despite the apparent marketing and profit benefits which can be associated with the huge success of Coca-Cola, a perhaps less-documented but equally interesting fact of the Share a Coke campaign has been its ethical message. The key values behind the Coca-Cola brand include optimism, social spirit and humanity, all of which have been captured by this notion of sharing the product. These values have been epitomized by the “Coca-Cola Small World Machines”, which has seen Coca-Cola vending machines dispatched to India and Pakistan (Outside the...
Words: 976 - Pages: 4
...Introduction Orange Julius is a very well-known brand. It is a great place to stop at if you are looking for a fruity and refreshing treat or beverage. Not only can you stop and enjoy such beverages in the summer, but they are also delicious in the winter, fall, and spring seasons as well! Around here, when we think of Orange Julius, we think of the store inside of the mall. It is the same way in many other locations. Orange Julius is a branch that is found in remote areas such as malls and in other mall-type settings. In this project, we wanted to expand on this idea. We created Orange Julius vending machines. These machines will be placed in businesses and schools so that workers and students can enjoy a healthy and tasty smoothie at their convenience. Instead of having to run to the mall for this, they can simply find a machine in the hallways of where they spend their most time! Orange Julius has a funny and interesting history. Their story began back in the 1940’s when a man who just loved oranges. The only problem was that oranges gave him a stomach ache. He also had a friend who loved oranges. His friend wanted to find a way to enjoy oranges without the acid and stomach aches. He began blending oranges in yogurt and other ingredients to dull down the acid. This is how the orange Julius smoothie was created. They then began making them for the people within their neighborhood. They instantly became a huge hit. Shortly after the opening of their business, Dairy Queen,...
Words: 4377 - Pages: 18
...Reflection Paper AB 1501 Tutorial Group 5 Tutor: Ms Zamora Gemmalyn Tong Done By : | Chew Zhan Yu | Matric Number : | U1210326B | Table of Contents 1: Introduction: 3 2: Current Marketing Situation: 3 2.1: Target Market 3 2.2: Competitors 4 3: Marketing Strategy 5 3.1: Target Segments 5 3.2: Value Proposition 5 3.3: Promotion 6 3.4: Market Research 7 4: Conclusion 7 Bibliography 8 1: Introduction: Marketing plays a huge role in today’s competitive business world. This is especially true in Singapore’s S$2.7 billion food service industry. Singapore has over 4500 F&B establishments island wide, contributing diverse and multi-cultural food choices to its vibrant food scene (Food and Beverage Services, 2011). The general consensus among our tutorial group was that the food market here has significant growth potential, as evident by the majority choosing a food product for our projects. To provide greater clarity and organization, my reflections would be organized according to how a typical marketing plan would follow, critiquing and evaluating the good and bad points made by the various groups as well as my own on selected marketing issues. 2: Current Marketing Situation: 2.1: Target Market Post project research done reveal much supporting evidence that Singaporeans place huge emphasis on the quality of the food they consume/purchase (Lay, 2012). I realized that we ought to have addressed this unique “food culture” aspect of...
Words: 1784 - Pages: 8
...dramatic show of Barista skills. Brand Loyalty is low, with consumers under pressure due to static wages/rising prices. To offset, retailers offer miniatures/vending, improved convenience and create new occasions to visit stores. Fig 2. Porter’s Generic Strategies (1980) – Strategies to increase marketshare (outlet expansion) & loyalty Differentiation * | Premiumisation of products/services to differentiate & charge higher prices - Increasing spend per visit by consumer-driven N.P.D | Focus | A niche market strategy is not suitable; focus is on mass market & intense penetration with diversification of products/services | Cost Leadership | Low prices is not congruent to the Brand Values of Starbuck’s - Premium price for high quality products & customer service/experience | Fig 3. Porter’s 5 Forces - Market Attractiveness – 60% of consumers have not altered coffee habits in recession Competitive Rivalry Mature & Fierce * Branded coffee shops focus on premiumisation & quality of services - Barista expertise to emphasise their ‘added value’ * Independents have flexibility and are as present as Branded * Market dominated by a Large Global companies: Starbucks, Costa, Caffe Nero, Caffe Ritazza and a large number of independents * Non-specialists – McDonalds - attracting new customers through coffee moments – top coffee seller in the UK & Greggs – a low-cost alternative | Bargaining Power of Suppliers * Strong ethical ‘Fairtrade’ stance...
Words: 5042 - Pages: 21
...General Environment Force/ Factor | Company 1 ( Pepsi) | Company 2(Coca cola) | Economic Conditions | The PepsiCo are using harvest raw materials such as oranges, grapefruits, lemons, etc; which distribution may cause the usage of fuel, and fuel prices are prevailed economically.If the country faces inflationary trend in the market, the price of the Pepsi will ultimately increase which will lower its demand. Besides that, the consumption behavior varies at different types of individuals. Pepsi is usually consumed by kids and young adults. Most of the older adults and senior citizens do not consume Pepsi due to the health consciousness. Income distribution is also taken in consideration because if there is balance distribution of income in the country, the consumption of the people will increase hence increasing the sales of beverages as well. However, Pepsi has a good market share in the present circumstances. | As a company dependent upon consumer purchasing power, the sustainability of The Coca-cola Company business depends on sustainable economies. They have a strategy of to be the top on gaining access to a market and to grow along with that market by providing jobs, investment and economic opportunities.In some markets, it can take years for this business to become profitable. The investment calculated in certain areas where they find market potential to drive business growth. | Political/ Legal Conditions | The production distribution and use of many...
Words: 842 - Pages: 4
...launched later and became ‘Ford Sierra’ , which later was improved and became ‘Ford mondeo”, which was later improved and launched as the new Mondeo in 2001.So the product we see is born, grows, and then dies, So in the commercial market place products and services are created, launched and withdrawn in a process known as Product Life Cycle. The five stages of product life cycle are Development, Introduction, Growth, Maturity and Decline. The coca cola company is currently in the maturity stage due to its large and well developed customer network in the world due to its well established distribution channelling, as customers do not wait if the products have not been delivered in the markets on time. Furthermore Coca Colas cost management, brand management in the foreign market, and efficient marketing channels have allowed to a high market share which is the key for higher profits with the growth rate being slow in the industry. 4. The customers of Coke are spread out word wide and geographically they are well dispersed around the...
Words: 833 - Pages: 4
...Table of Contents Executive Summary 1 Situation Analysis 2 Market Needs 4 Competition 5 Market Analysis 6 Porter Five Forces Analysis 6 SWOT Analysis 8 Marketing Strategy 10 Financial Analysis 12 Implementation 13 Contingency Planning 14 Executive Summary Portland Drake Beverages (PDB), Sarah Ryan, the vice president of Market of that company (PDB) are finalizing the product positioning for their new acquisition, Crescent Pure. Crescent Pure is nonalcoholic beverages which launch in 3 US markets. PDB planned for soft launch for Crescent Pure focusing in western states (California, Oregon and Washington) in January 2014 whereby they projected that these states represent 15% of national beverage demand. PDB planned to spend 750,000$ on advertising for crescent pure in 2014 and use that figure as benchmark earning goals. Ryan need to explain to Michael Booth (CEO of PDB):- (1) Industry specifies related to each of the two positioning options (energy or sports drink), (2) The potential benefits and drawbacks of each option (3) Her final recommendation. Crescent Pure history start of where Peter Hooper saw a market opportunity for healthy, energizing drink. He founded Crescent in year 2008, organic, all natural food and beverages become famous in the Pacific Northwest region in 1900’s and early 2000’s. The hobby of Peter Hooper became business as Hopper saw growing local demand for his product. 12 months after launching his small business, Hopper...
Words: 4144 - Pages: 17
...Starbuck Case Analysis Starbuck Case Analysis Company Statement Starbucks, one of the most successfully coffee companies in the world, has been committed to ethically sourcing and roasting the highest-quality coffee in the world. And Howard Schulte, the CEO of Starbuck, explained Starbuck’s long vision as: an idea which was to create a chain of coffeehouses that would become America’s “third place.” Integrated view, Starbuck’s strategic intent captures the essence of winning. Starbuck want to put “high-quality coffee” into “the third place of customers”. The “product” and the “customer” are the two main essences that lead a company to success. As long as you serving the best product to satisfy and attract customers, you will be the winner in the market. In addition, Starbuck‘s strategic intent not only set the long-term goals for the company to achieve, but also provides consistency to short-term actions. “We need to introduce a new hot beverage this quarter.”, “We need to self-cannibalize the store in West Palm Beach today”: both of the two short-term goals completely meet company’s strategic intent. At last, I think Starbuck’s strategic intent gives its employees a strong goal that is worthy of commitment: we are the employees of Starbuck; we should give the customer’s best coffee and make them like our store as their “third place” to come together. Line of Business Starbuck expanded its stores in many locations which are high-traffic, high- visibility settings...
Words: 2112 - Pages: 9
...have local distribution centers to serve their entire local stores worldwide. The company has invested in things that make a difference for their customers, continuously improving a many-sided service network, which includes a strict quality management system by their engineering teams, and testing laboratories around the world. The company also introduced industrial vending machines, which has become widely used industrial vending system in the world. Fastenal also has manufacturing divisions in North America, where they can custom engineer parts to customer specifications. A downturn in the economy and other factors may affect customer spending, which could harm their operating results. A downturn in either the national or the local economy where the stores operate could negatively affect sales at their stores and their level of profitability. Due to these factors, Fastenal has been adjusting their strategy as they go a long to be the number one supplier in manufacture supplies. The company selects new locations their stores based on their proximity to the distribution network, population statistics, and employment data for manufacturing and construction. Background Bob Kierlin founded Fastenal in 1967. When Kierlin was a young boy, he used to help his father in his shop. Kierlin observed that customers had to...
Words: 5295 - Pages: 22
...1-1. In order to generate interest about the company's publications, the Media Manager of Gordon Books started a personal blog where she posed as an avid reader and amateur literary critic and reviewed the company's books favorably. She also invited readers to buy the books, discuss them online, and send in their reviews. Which of the following is the best criticism of the manager's action? A) She engaged in plagiarism. B) She selectively misquoted information. C) She failed to protect information entrusted to him. D) She failed to ensure transparency. E) She failed to respect the privacy of others. 1-2. Which the following decisions-making scenarios presents an ethical dilemma? A) A disgruntled employee of one of your competitors has offered to reveal details of his company's new strategy if you were to hire him. This competitor has in the past poached key executives from your company and engaged in industrial espionage in other ways. B) You are manager of a large facility in a country where paying bribes to public officials is a way of life. Your company has a zero-tolerance policy toward bribing, but the officials are threatening to close down the factory, rendering several thousand workers jobless, if you don't comply. C) It has been brought to your notice that the company competing with you for a major contract is trying to bribe and influence decision-makers in a bid to get the contract. Some of your executives feel that your company should also do the same because getting...
Words: 2961 - Pages: 12
