SOLUTION BRIEF Vending Solutions Retail Innovative Vending Solutions Deliver New Value to Retailers Interactive vending machines are redefining customer self-service experiences and helping brands expand market share and increase profits Overview By 2015, an estimated 35.2 million vending machines will be installed worldwide, according to a report by Global Industry Analysts.1 Driven by demand for self-service convenience and fueled by increased discretionary spending and rising levels of employment, the on-the-go vending industry is on a steep growth trajectory. For retailers, vending machines offer new opportunities for financial upside, brand visibility, and customer engagement. Today’s vending machines can literally fit in a hole in the wall or be configured to span an entire wall, allowing brick-and-mortar brands to sell products from a broader range of locations and reach their core audiences where they live and work with focused, automated micro-stores. “The vending experience now is more personal, more engaging, and makes everything fun. It’s no longer just delivering snacks. It’s a new channel…a truly new retail location. Something that’s delivering an experience that’s very valuable for retail companies.” —Aviel Dafna, President, VE Global Vending, Inc. Additionally, with today’s technology capabilities, vending machines are intelligent, interactive, can handle multiple modes of transaction types, and sell a multitude of products—from soda and snacks to blue jeans and Bluetooth* devices—further expanding their retail potential. VE Global Vending is helping the retail industry capitalize on this growing market by combining cutting edge technologies with robust software and focused hardware innovations. Retailers, agencies, and solution providers define the customer’s user experience and bring it to life using VE Global Vending’s powerful solution platform. Once deployed, vending end-points look like miniature retail stores to help brands expand their reach, grow their market share, engage more customers, and increase their bottom line. The Rise of the Machines Vending machines have a long history. Originally known as “automatic retailing machines,” the first commercial vending machine came on the scene in the early 1880’s in London. It dispensed postcards. Earlier still, Greek mathematician, Hero, invented a coin-operated machine to vend holy water in Egyptian temples. That was in 215 BCE. Fast forward to today and vending machines are ubiquitous and sophisticated, with the biggest leap in innovation—and information— occurring quite recently. Today’s machines not only “know” what was purchased, but what was looked at and not purchased, giving retailers more insight into the drivers of sales and customer satisfaction. Although the staples we’ve seen for years— snacks, candy, hot and cold beverages, sundries, stamps—will undoubtedly remain popular, new technology is producing a vending revolution in terms of the range of items machines offer, how they’re operated, and the interactive experiences they can deliver. An Increasing Range of Items Vending machines are evolving to safely store and deliver a growing range of product types that have significant variability in weight, size, and temperature requirements. For example: • Technology (mobile phones, headsets, hard drives, laptop batteries) • Travel supplies (umbrellas, neck pillows, mobile phone chargers) • Luxury items (perfume, caviar) • Pharmaceuticals (single-serving pain relief or antacid, emergency diapers, cough medicine) • Hotel sundries (shampoo, toothbrush, razor, socks, undershirt, tie) “The intelligence that’s built into VE CONNECT is allowing us to offer marketing promotions, and look at product placement, service calls, and tracking information. It’s unlike any other machine has been able to do.2“ — Carla Filer Vending Machine Operator The Cuyahoga Group • Fresh/healthy foods (fresh salads, fresh sandwiches, fruit, yogurt, vegetable trays) A shopping center in Leeds has vending machines that sell art; in Dubai…gold bars. New Operating Models, New Business Opportunities As vending machines become more intelligent— i.e., capable of tracking and collecting a wealth of user information, and connected to a scalable network of other machines, business applications, and services—operational needs are rapidly expanding. From enhanced security and remote manageability to real-time customer demographics and inventory control, vending machine operation is a new business channel with large upside potential. Enhanced Experiences Interactive touchscreens, HD video, and multimedia displays invite customers to easily browse products, view details, and make informed selections. Shoppers without cash on hand can safely and conveniently pay for items via a growing range of mobile payment options, including near field communication, Bluetooth, and QR codes. A recent eMarketer study projects mobile payment transactions in 2016 will reach USD 26.45 billion, more than 25 times the USD 1.04 billion expected in 2013.3 2 VE Global Vending: Innovations from A to Z The hallmark of VE Global Vending has always been its passion for innovation and invention, and the company continues to push the envelope of what’s possible. Offering reconditioning and retrofitting classic machines, integrating cutting-edge technologies into new OEM systems, and designing and building interactive machines from the ground up, VE Global Vending continues to lead this burgeoning industry and support their clients’ success. Here’s a sampling of their most popular innovations: • VE CONNECT*. This highly scalable platform is capable of displaying a customized, interactive user experience with tailored advertising, promotional videos, detailed product images and information, coupons, loyalty programs, games, and social media tie-ins. It uses LED touchscreens (19-85 inches, 720p-1080p) to attract and engage customers, and an integrated Content Management System such as Intel® Retail Client Manager (Intel® RCM) to serve tailored messages, pricing, promotions, samples, games, and apps. The built-in 2D barcode scanner reads UPCs and static and dynamic QR codes for sampling, gift-withpurchase, coupon, and loyalty programs. All VE CONNECT components are easily controlled by VendOS*, a single, enterpriselevel software platform. • UCB* (Universal Control Board). The UCB can update any legacy machine in the market, no matter who produced it, when it was manufactured, what its model number is, or what products it sells. With plug-and–play installation, a single board can increase business efficiency, secure a foothold over the competition, manage inventory, and reduce training costs. Legacy vending machines can be converted to a VE CONNECT and morph into an interactive vending experience. • The VE EXPLORER*. An interactive telemetry, advertising, and data platform, the VE EXPLORER incorporates VE Global Vending’s MIND* technology. Short for Make Informed Nutritional Decisions, MIND provides a simple and intuitive way to provide full nutritional/allergen information about all carried products.4 Automatic transmission of vending data and price and ad changes makes the VE EXPLORER a real workhorse for the vending and automated retail space. • VE EXPERIENCE*. For retailers wanting a more elegant product delivery experience, the VE EXPERIENCE offers an internal elevator system that gently captures the product and delivers it at a height and location that makes for a stylish and graceful retrieval of vended items. One-Stop Vending Solution Partner Combining commitment and expertise with innovation and creativity, VE Global Vending and Vendors Exchange, their vending machine service and parts affiliate, have become the trusted partners and resources to over 9,000 vending operators worldwide. They have helped their customers harness the latest in intelligent technologies, expand their presence and selling opportunities, and increase their revenues. The MIND database of nutritional values displayed on the touchscreen monitor. INTEL AND VE GLOBAL VENDING TEAM UP FOR INTELLIGENT VENDING OF COMPUTER ACCESSORIES Ever needed a flash drive or new laptop AC adaptor at 3 a.m.? Maybe before a long-distance flight or a crunch-time deadline? Intel employees have, and now they can get these and over 40 other items 24/7/365 from a new vending machine solution. After a successful pilot, Intel recently rolled out a program that enables employees to purchase a variety of computer-related accessories from touchscreen-equipped vending machines and software developed by VE Global Vending. Called “IT on the Go,” these unique machines are the first to exclusively carry computer accessories for the corporate environment. But what makes it so innovative is how it works. In particular the size and weight of the products it can carry and dispense range from small thumb drives to full-sized keyboards, up to 40 pounds per slot. A typical vending machine can only accommodate 5-7 pounds per slot. The machines’ interactive displays also allow employees to get detailed information on each item and not merely look at it from the other side of a glass panel. During the initial pilot, 12 percent of sales were made outside regular business hours, billing time was reduced by 98 percent, the purchasing process was streamlined to four steps, and the machines got a 95 percent approval rating from users. The machines have been a huge customer service success and are now being implemented at other Intel locations worldwide. These VE CONNECT machines run on Intel® Core™ i5 vPro™5 processors and use Intel® Audience Impression Metrics suite (Intel® AIM suite) to capture anonymous analytics such as age and gender. The VE CONNECT platform that drives the “IT on the GO” solution supports one master machine and up to three additional expansion cabinets that can operate as a single unit. Visit Intel® Technology for Intelligent Vending for more information. 3 Helping Clients Prosper Every Step of the Way Fifty years after Vendors Exchange began selling reconditioned vending machines, VE Global Vending continues the mission of providing clients—no matter what size business they are—with total partnership for groundbreaking technology. Here are a few highlights: • A growing list of innovative products and solutions that continue to shake up the industry and deliver new levels of value and opportunity to clients. • Deep knowledge of the industry and expertise with vending technologies, from legacy to leading-edge. • Fully customized solutions that start with a client’s idea, are designed and engineered, built and tested, and fully deployed and supported. Intel® Technologies VE Global Vending solutions are built using powerful Intel® technologies: • Processors: Intel® Core™ vPro™ processors deliver top-of-the-line performance for visually and compute-intensive tasks, including high-definition digital signage and content management. • Content Management Systems: Intel Retail Client Manager allows vending machine operators to capitalize on sales opportunities by composing relevant and high-impact campaigns in minutes, no technical knowledge required. Messages can be deployed to a single screen or across a network, and screens can be managed independently—and remotely—from a single location. • Analytics: Intel® Anonymous Impression Metrics Suite (Intel® AIM Suite) gives retailers and brands the power to know how vending machine customers are responding to visual messaging and how they are engaging with the machine and its products. Using anonymous viewer analytics technology, Intel AIM Suite aggregates viewer statistics by gender, age range, impression counts, and dwell times. These statistics are used to calculate Average Unit Audience Impressions as well as conversion rate. The data can be used in real time to tailor on-screen content and measure campaign effectiveness, as well as determine lost sales from customers who walked away without making a purchase. • Manageability: Intel® Active Management Technology (Intel® AMT)6 makes it easy to remotely monitor real-time inventory, proactively schedule restocking, and diagnose system operations, so retailers can reduce operating costs and boost profits. If a vending system malfunctions, an alert—including system diagnostics—is automatically sent to maintenance staff, reducing downtime and lost sales opportunities. Even new advertisements can be initiated remotely, decreasing labor costs and time to deployment. The Sky’s the Limit As vending technology continues to evolve, new machines are going well beyond dispensing snacks and drinks. Forward-thinking solution providers such as VE Global Vending, working with Intel, are helping to transform vending machines into intelligent systems with a multitude of new features and capabilities, creating a more engaging experience for consumers and enhanced revenue potential for retailers. For More Information about VE Global Vending and Vendors Exchange innovations, visit: www.veii.com For More Information about Intel® Technology for Intelligent Vending, visit: www.intel.com/content/www/us/en/retail/retail-vending.html 1 ”Vending Machines – A Global Strategic Business Report.” Global Industry Analysts, Inc. November 2012. www.strategyr.com/Vending_Machines_Market_Report.asp 2 Carla Filer. The Cuyahoga Group. “Vendors Exchange Intel Video.” www.youtube.com/watch?v=IZk4YtIfeOg 3 “US Mobile Payments to Top $1 billion in 2013.” eMarketer. July 11, 2013. www.emarketer.com/Article/US-Mobile-Payments-Top-1-Billion-2013/1010035 4 U.S. Food and Drug Administration. Questions and Answers on the New Menu and Vending Machines Nutrition Labeling Requirements.” www.fda.gov/Food/IngredientsPackagingLabeling/LabelingNutrition/ucm248731.htm 5 Intel® vPro™ Technology is sophisticated and requires setup and activation. Availability of features and results will depend upon the setup and configuration of your hardware, software and IT environment. To learn more visit: www.intel.com/technology/vpro. 6 Requires activation and a system with a corporate network connection, an Intel® AMT-enabled chipset, network hardware and software. For notebooks, Intel AMT may be unavailable or limited over a host OS-based VPN, when connecting wirelessly, on battery power, sleeping, hibernating or powered off. Results dependent upon hardware, setup and configuration. For more information, visit Intel® Active Management Technology. 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