Tag Archives: global marketing

by | Saturday, February 17, 2024 · 11:40 am

Vending Machines Evolve

Distribution, food, global marketing, innovation, market segmentation, merchandising, packaging, retail, shopping, supply chain

Vending machines are everywhere – and we do mean everywhere, and selling virtually everything possible. There are in stores, hallways, dorms, offices, laundry mats, gas stations, train stations, airports, and more. And now we don’t even need coins or cash to make a purchase – we can use phones and credit cards.

One might think that not everything can come from a vending machine, but they neglect to factor in how creative people can be, as well as products consumers want as convenience items. In Las Vegas, one can buy comfortable shoes from a vending machine. In California, hospital workers can get lab coats and masks (free). In Tennessee schools provide access to basic hygiene products (also free) to students. And that is just scratching the surface; there are vending machines that dispense pizza, eggs, fresh food, ramen, underwear, and even gold.

Recently The Donut Trap, a bakery business in Minneapolis, spent months with vending machine manufacturers to come up with a vending machine that keeps homemade donuts fresh, and serves them without smearing or smushing the donut frosting.

Vending machines can also serve the public good. For example, many cities are now deploying Narcan vending machines to help keep people from dying due to drug overdose. Free of charge, the Narcan kits provide doses of Narcan (naloxone) in risky areas.

According to the National Automatic Merchandising Association, the vending machine industry accounts for $34.9 billion in sales. And it’s growing in size, shape, and purpose. Called Micro Markets, vending provides retail areas where consumers can pick up products, review nutrition information, and more as they shop open coolers, use self-checkout and cashless payment.

But perhaps no geography has as many vending machines as Japan, with an estimated total of 5 million machines nationwide (out of 17 million machines worldwide). They carry something for everyone – from bananas to flying fish soup!

Now that’s convenience!

Group Activities and Discussion Questions:  

  1. Poll students: Where are vending machines? What do they buy form vending machines? Why buy from vending machines?
  2. Show video about wild vending machines (this is long, so make sure to preview it and select the video section to show in class): https://youtu.be/4CTZXG6_Qqs?si=mkE70k8HASU1rJin
  3. Show the National Automatic Merchandising Associate (NAMA) site: https://namanow.org/
  4. Show video about Narcan vending machines: https://youtu.be/LVTVzS4t6S8?si=GY1VKbrSB-vlS9Qh
  5. Divide students into teams. Have each team develop a concept for a vending machine.
  6. Develop a marketing plan for the new vending machine. What will it stock? Where will it be placed? How will it be promoted?

Source:  Gibbs, K. (31 January 2024). Hygiene vending machines offer a fresh start for students in Rutherford County schools. News Channel 5  Nashville; Kovanis, G. (19 January 2024). 100 Narcan vending machines coming to Wayne County. Detroit Free Press; Williams, N. (22 December 2023). Vending evolution. Minneapolis Star Tribune; other news sources.

Leave a comment

Filed under Classroom Activities

Tagged as , , , , , , , ,

by | Wednesday, January 31, 2024 · 8:01 am

Not An Average Cup of Coffee

If you love coffee, this article is for you. Heck, even if you don’t love coffee, this information may interest you.

How much did you pay for your last cup of coffee? How much are you willing to pay for a good cup of coffee? A great cup of coffee? An extraordinary cup of coffee? How much would you pay for coffee with beans that were fermented in elephant poop?

Yes, you read that correctly. And the coffee from elephant poop is roughly $150 for two-servings of the brew, or $1,500 for a pound of beans. That is, if you can find the coffee as it has a very limited supply; production is only about 500 pounds per year.

How does one get such coffee? It starts with captive Asian elephants that consume a mix of coffee and fruit. Their stomachs ferment the mixture, which eliminates its bitterness. 

This isn’t the only type of coffee made from animal poop. There is also bird-poop coffee as well as monkey-chewed coffee beans. Plus, a ‘naturally refined’ coffee from the poop of a type of cat called civets. (It’s important to note that some of these coffees are produced from animals that are not well cared-for in captivity.)

Here is a list of a few of the most expensive coffees in the world:

  1. Black Ivory – $1,500 per pound (fermented by elephants)
  2. Ospina Gran Café – $1,400 per pound
  3. Kopi Luwak – $600 per pound (fermented by civets)
  4. El Injerto Peaberry – $500 per pound
  5. Esmeralda Geisha – $350 per pound

Shall we go get a cup of Joe?

Group Activities and Discussion Questions:  

  1. Poll students: How much do they usually pay for a cup of coffee? Now, how much would they pay for great coffee, and for unique coffee?
  2. This is a great topic for pricing. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  3. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  4. For these products, divide students into groups and have each group work on any/all of the six steps.
  5. Show the Black Ivory coffee site: https://blackivorycoffee.com/
  6. Ospina Gran Café: https://www.ospinacoffee.com/products/index.html
  7. Kopi Luwak: https://www.kayakopi.com/
  8. Divide students into teams.
  9. Have each team select a unique coffee and define the target market.
  10. Teams should prepare a marketing plan for product and market.
  11. What will they emphasize?

Source:  Bradley, M. (6 November 2023). Not your average cup of Joe: The 11 most expensive coffees. Luxe.digital; Maron, D. (12 December 2023). $1,500 for ‘naturally refined’ coffee? Here’s what that phrase really means. National Geographic.

Leave a comment

Filed under Classroom Activities

Tagged as , , , ,

by | Tuesday, January 16, 2024 · 7:46 pm

Did you get socks for Christmas?

Time for true confessions: Who got (or gave) socks for Christmas? And who was happy about it? Don’t be shy – raise your hand with pride.

Of course, when we think back to when we were small children, one of the most dreaded gift was SOCKS! No kid wants socks – they want TOYS! But is that still true as an adult? Are we more willing to accept socks as a gift of love?

Well, even if it’s not the most-wished-for gift for Christmas, socks are nonetheless a top gift at the holidays, accounting for nearly a third of all apparel items purchased in the fourth quarter. Market research firm Circana expected socks to outperform other clothing purchases. For example, Smartwool sells 2 ½ times more socks in November and December than the other months of the year; last year three-quarters of all socks sold during the year were purchases in the same months.

Winter is (no surprise) a top season for sock purchases. Not only do our feet need warmth, sock sizing is pretty easy to guess, as well as being an affordable purchase. Socks can be (ahem) stocking stuffers, a part of a gift basket, or an impulse buy. Even the traditional advent calendars can come stuffed with 24 days of socks.

According to Statista.com, the market for socks is expected to be more than $14 billion worldwide in 2024, with annual growth of 2.7%. That’s a pretty flat rate, but it is very consistent year-to-year, and socks are one item that routinely wear out and needs replacement.

While the traditional white-only-athletic socks are still popular gifts, now consumers can buy funny socks with foods, hobbies, pets, bright colors, unique patterns, and more.

Are your feet warm enough?

Group Activities and Discussion Questions:

  1. Poll students about Christmas gifts that they gave and received.
  2. Who got socks? Who gave socks? What was the response?
  3. Show video: https://www.cnn.com/videos/business/2023/12/29/exp-happy-socks-ceo-live-12293pseg2-cnni-business.cnn
  4. Show various sock websites such as Happy Socks: https://www.happysocks.com/us
  5. Bombas socks: https://shop.bombas.com/
  6. Socksmith socks: https://www.socksmith.com/
  7. Amazon socks: https://www.amazon.com/novelty-socks/s?k=novelty+socks
  8. Have students research the sock market. An example is Statista: https://www.statista.com/outlook/cmo/apparel/men-s-apparel/socks/worldwide#price
  9. Divide students into teams. Have each team select a theme for socks and develop a unique sock, along with a marketing plan, paying particular attention into the timing of sales and distribution opportunities.

Source: Fung, E. (24 December 2023). The item that’s on Christmas lists every year – and some don’t like it. Wall Street Journal; Meyer, A. (26 December 2023). Socks for Christmas? Happy Socks’ CEO explains why it’s such a common holiday gift. CNN (Video).

Leave a comment

Filed under Classroom Activities

Tagged as , , , ,