Vending Machines: Market Opportunities and Threats Research Paper

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Vending machines are extremely popular nowadays because they provide an opportunity to sell products with minimum personnel involvement. Today, those machines that allow the representatives of the general public to buy drinks and snacks can be found in many places all over the world. However, only few of them can sell food and hot snacks. We consider that the creation of such a product and its appearance in the market are going to appeal to the targeted population and entail substantial profit. We will start with a pizza vending machine and then consider the expansion to pasta and Chinese dishes, etc.

Currently used, vending machines offer cold and hot drinks, including tea, coffee, water and soft drinks. The range of these products is rather expanded so that the decision to add more beverage offerings does not make much sense. However, the variety of snacks that can be bought from a vending machine is extremely limited. They mainly provide an opportunity to buy some chips, candies, and cookies while none of these products can be considered healthy or used as a substitution of a meal. A person who is really hungry will never buy anything from a vending machine when knowing that soon there will be a possibility to eat at home, go to a café or at least a supermarket where the range of offerings is much wider. Thus, it cannot be denied that a huge product gap exists. When filling it with food and hot snacks, the representatives of the targeted market are likely to get interested. Then, when standing in front of vending machines and searching for something for lunch, the majority of them will surely refer to our innovative product because its offerings will be healthier and more appropriate as a meal.

For example, a pizza vending machine will attract the population of both genders, including children, youth, and young adults. Even though ender individuals do not often consume such food, the rest likes it, regardless of their nationality and general eating habits. Pizza can consist of various ingredients so that everyone can find something to his or her liking. Our vending machine will be positioned as the one that cooks an entire pizza according to the client’s wishes just in a couple of minutes. The fact that all ingredients are fresh and have a high quality will be emphasized. Except for the fillers, we will need to add flour, water, and sauce. In addition to that, there is an opportunity to use the semi-finished dough to streamline the process. Still, we believe that it is better to let a vending machine prepare everything. In this way, expenditures can be reduced because when being apart these ingredients can be used longer than when being in the form of rough or already cooked dough.

In this way, we also will have a chance to popularize our product as the one that uses all fresh ingredients just like Italians do. Pasta vending machines are also likely to be positively accepted by the representatives of the targeted market. We believe that diverse population of people who have little time for lunch but want to eat something substantial and hot will be attracted by this product. We think that there should be several pasta variations with different sauces so that people can find something to their liking. Unlike snacks, pasta is a meal that can be found in cafes and restaurants or cooked at home. It is a product that people can often eat without being afraid to feel sick. As this offering requires mainly just pasta, water and several types of sauces, it does not need extreme investment, which is also beneficial. Vending machines with Chinese dishes, in their turn, are going to attract those individuals who prefer such meals but have no time to visit a café or cook them themselves.

Just like all vending machines, these one is going to be targeted at those individuals who lack the time and have no opportunity to have a meal because of it. Still, the advantage of the proposed product is that it offers that food which can satisfy hunger better than other offerings. In addition to that, individuals who have just worked long hours and are going home are likely to refer to our vending machines, as they allow to avoid cooking and to have more time to rest.

Current technological development already gives us a chance to create this innovative product. Moreover, similar machines can be found abroad where they are rather popular regardless of the competition. Vending machines that offer snacks and drinks will never be able to exceed the popularity of our product because they just repeat some supermarket offerings that are good while working or studying. Our machines can substitute cafés and restaurants. They allow the targeted market to have a substantial meal during a break, which puts them on the upper level. Many people try to omit snacks while everyone needs a decent lunch or supper that is offered by our vending machines.

Market Evaluation

An umbrella compartment next to the driver’s door in a car can be a great innovative product that is likely to simplify everyday routine for a driver and one’s passengers. The umbrella compartment is a practical solution that prevents the rain drops on the top of the umbrella from wetting the seats in a rainy weather and damaging the umbrella while opening and closing it in a car. In addition to that, it is much easier to keep everything in order when there is a particular place where one can easily put a wet umbrella without being afraid to spoil something.

The umbrella compartment is likely to appeal to those drivers who spend much time going somewhere. In this way, it is mostly needed by taxi drivers, personal drivers, and business people. Still, other representatives of the general public also tend to require this product. Even an ordinary housewife who uses a car mainly just to take her children to school and go shopping will be positively impressed by the received opportunity to put a wet umbrella in a special compartment instead of trying to find a place where it will not contact with other things.

This innovative product will be highly valued in those territories where rainy weather is rather typical because their population faces related issues more often than others. Still, even those who rarely get in trouble because of a wet umbrella will benefit due to this product.

The targeted market will value our company for such an innovation because it will be offered only by us. Later, we will win the competition due to the high-quality of the product and positive reputation of being innovators.

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IvyPanda. (2020, August 8). Vending Machines: Market Opportunities and Threats. https://ivypanda.com/essays/vending-machines-market-opportunities-and-threats/

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"Vending Machines: Market Opportunities and Threats." IvyPanda, 8 Aug. 2020, ivypanda.com/essays/vending-machines-market-opportunities-and-threats/.

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IvyPanda. 2020. "Vending Machines: Market Opportunities and Threats." August 8, 2020. https://ivypanda.com/essays/vending-machines-market-opportunities-and-threats/.

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IvyPanda. "Vending Machines: Market Opportunities and Threats." August 8, 2020. https://ivypanda.com/essays/vending-machines-market-opportunities-and-threats/.

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