Innovative Vending Solutions Deliver New Value to Retailers

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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