Cocacola’s New Vending Machine

CocaCola’s New Vending Machine

Q1. Is selling Coke through interactive vending machines is good or bad idea? Why?

Rather than just thinking whether it is only a good idea or bad idea, we need to think through Perspective of Company itself and the Consumers.

Company Perspective –

Profitability – If this idea taken positively by target consumers then only it can make wonders in Company’s financial books. As these interactive vending machines will make most of the seasonal Pricing will contribute to the profit.

Future RnD – These interactive machines not only will sell just the Drink but can also be helpful to gather some insights about the Consumer in Different Environment. The consumer acceptance of the product at Higher Price in Warmer conditions, effect of another Non vending machine point of sale in the vicinity on its sale, Seasonal effect on stocking trends etc. can be very well gathered and worked upon.

Brand Awareness – Deployment of these machines can get company some more means of Brand Awareness, Brand Promotion, Advertising which otherwise company could not have done it.

Availability & Accessibility – These interactive vending Machines will be well accessed and available & reduce the gap between the Product and target consumer if found ubiquitous.

Consumer Perspective –

Differential Pricing – For a consumer a differential pricing comes as a means of being cheated by the company. As here a mere change in temperature is going to decide how much he has to pay for the Drink which is the fact is not Consumer is not going to accept.

Comparison with Competition – Though Coke is a soft brand that has carved a niche for a century in its consumer’s mind, if this idea not taken very well, Consumers may compare it with the Archrival Products of PepsiCo which otherwise they would not have done.

Man v/s Machine – As a buyer Consumers are yet not well versed with the idea of a Machine making changes in price they pay which otherwise in case of a Human being doing so , they still might accept. Here they tend to think something is fishy.

Considering all the points, the idea of selling Coke through interactive vending machines is good considering the distant future but it will hamper its overall financials for a shorter but considerable period until People are made aware of Technology and have accepted it.

Q2. Where, how & for whom does this technology create/destroy value? For example, loyal coke customers, switchers among cola products, loyal Pepsi customers, etc.?

Loyal Coke Customers –

Value Creation –

• Enhanced accessibility

• Increased Availability

• Eagerness to use of Innovation created by your favourite brand (e.g. Early Adopters)