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:
- Poll students: Where are vending machines? What do they buy form vending machines? Why buy from vending machines?
- 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
- Show the National Automatic Merchandising Associate (NAMA) site: https://namanow.org/
- Show video about Narcan vending machines: https://youtu.be/LVTVzS4t6S8?si=GY1VKbrSB-vlS9Qh
- Divide students into teams. Have each team develop a concept for a vending machine.
- 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.
