Vending machines are not a new concept. In fact, according to some historians, in ancient Greece, there was an invention that recognized the weight of the coin placed to allow the use of sacred water in temples.
More recently, not so much, an English bookseller named Richard Carlile came up with a newspaper dispensing machine in 1822. In 1867, Simeon Denham won the British Patent no. 706 for creating the first fully-automatic vending machine, dispensing stamps. As expected, Coca-Cola was the first soft drink brand to sell its cans in vending machines in the 20th century. Currently, in the U.S. alone, automatic vending machines are a business of over 20 billion dollars, with obvious solutions ranging from makeup, electronics, and food to less usual items like live bait for fishing. The current payment facilities also help to continue driving this channel.
For me, the great twist of a vending machine is the same principle as a physical retail store: location, location, location. Most of the time, they are positioned together with many other machines, in corridors with impaired visibility or reduced impact. Not to mention the lack of alignment of the product mix with the local audience.
In a recent visit to Memphis, TN, right after checking into the hotel, I headed to the elevator hall. At that moment, I thought: I need to stop by a pharmacy; I forgot some basic things. Suddenly, I came across this CVS vending machine, alone, well-lit, products aligned, a relevant and varied mix, and even category management! With no competitors and all my attention focused on it, how could I resist and not buy what I needed right there, even knowing about the overprice? At that moment, convenience is worth its weight in gold.
Brands need to better explore the potential of their channels. Being in an airport or shopping mall corridor, where all other brands are, comes at a price. Selling live bait to fishermen 24/7, rain or shine, next to the boat dock, is priceless. What a twist.
