www.AMonline.com 03.08
Vending machine: a consumer destination
Barry Frankel, owner of The Family Vending Co. in Coral
Prezzano said the vending machine has an advantage for mar-
Springs, Fla., recently decided to participate in the SPIO
keters since it is a destination for the consumer. “The consumer is
network. “As long as the promotions continue to come with val-
making a particular choice to go to that machine because they’re
ues, the purchase of the drink becomes insignificant,” he said.
getting something else there,” he said.
In a previous role as a cold drink manager for a beverage
In addition to redeemable cards, the machine also dispenses
bottler, Frankel saw the ability of on-can promotions to drive
a magnetic stripe card that can be loaded with value for use in a
sales. One promotion he remembers was $5 off the price of
retail store. There is also a patented Website decoder that contains
admission to Universal Studies. “It was a great promotion
an imbedded code that becomes visible when held up to a Web
for a very large customer; it got you an account and also
page on a computer screen.
helped drive sales,” he said.
“We’ve got to bring the customer back to the vending
Prezzano, who exhibited the system at the Direct Marketing As-
machine,” Frankel said. “This will give us new value.”
sociation trade show recently, said SPIO is making waves because
In the meantime, more is being learned about the at-
the direct marketing industry is beginning to focus more on work
place marketing. What SPIO brings to the table is being able to
interact directly with the consumer.
Retailers in particular are learning that work-site marketing, which
Dobbin Prezzano of SPIO says marketers in many industries are interested in reaching consumers directly.
work consumer market.
At-work consumer: a target audience for marketers
The at-work consumer has a higher level of disposable
is also known as “alternative print media,” is a cost effective way to
target consumers with disposable income. In the work place, marketers
“Work places and vending machines are as natural a pair-
income than the rest of the population. As busy profession-
find an attentive audience for messages that focus on convenience and
ing as coffee and a doughnut,” said Dan Wheeler, executive vice
als, they are willing to pay a premium for convenience, often
value. In some cases, employers offer coupons as perks through payroll
president of WorkPlace Media, a Mentor, Ohio-based company that
saving time by running errands on office time to stores
checks, intraoffice mail or other company correspondence.
develops creative graphics and distributes them to selected work
within a 5-mile radius of where they work.
sites. “When you consider that 83 percent of working Americans
Work place marketing: an emerging industry
Work place marketing experts don’t question the role that vending machines can play in these efforts.
in commercial areas, literally surrounded by hundreds of
percent rely on some sort of vending machine snack such as gum,
stores and restaurants. Naturally, they are going to visit
chips or candy bars, the value of targeting workers right in their
these businesses more often than the average consumer –
cubicles is undeniable.”
often just to take a break from the office.
Where traditional business-to-business marketing has focused
At-work consumers’ daily
“pick me ups”
43%
their waking hours at work, they are often looking for new
relying on that party to communicate information to consumers,
“pick-me-ups” to help keep them focused and alert. At-
the vending machine offers the marketer more direct access to
work consumers are more prone to making impulse buys.
Coffee
40%
Gum
28%
Salted
snacks
25%
Candy bars
Cigarettes
19%
10%
Source: WorkPlace Media employer survey
“What I tell them (the product marketers) is we’re going to get
them to their consumer,” Prezzano said.
One example is the financial services industry, which is looking
to interact with high school and college students.
Vend product manufacturers have periodically partenered with
other consumer product marketers to offer vending customers
added value. Last year, General Mills Inc. offered $3 off any
movie or game rented at Hollywood Video and Movie Gallery on
some of its core products.
The success of the program encouraged General Mills to
introduce another $3 off any movIe or game purchased at
Best Buy on three of its core products, Sweet & Salty Bugles,
Gardetto’s Original Recipe and Chex Mix Traditional.
The offer is announced in a big colorful label on the front of the
bag. There is no work for the vending operator. “You cannot
pass any amount on the operator or it’s a ‘no go,’” said Charla
Sheffield, associate marketing manager for vending at
General Mills.
Stu Case, a partner in Pacific Brokerage Co. Inc., the Yorba
Linda, Calif.-based product brokerage, said the promotion is
better than other types of manufacturer promotions that have
been done in the past since there is no extra work required on
the operator’s part.
“It (the General Mills promotion) has driven additional cases,”
Case said.
Because the at-work consumer spends 60 percent of
on reaching the location manager or account decision maker and
the consumer.
Caffeine
beverages
At-work consumers also spend the majority of their day
rely on caffeine to get them through the day, and another 72
Vend product manufacturers add value
with on-pack offers
In the past, these highly valuable yet largely untapped
consumers had to actually leave the confines of their cubicles to forage for this elusive “something.”
Work place focused, direct marketing companies target
this valuable demographic audience and attempt to deliver
products to them in the work place.
Vendors must provide location information
In seeking vending operator partners, Prezzano said he looks
for operators who can provide demographic information about
If the recent Chick-Fil-A promotion is any indication, vending machines have a big role to play in not only work place marketing, but in many types of targeted consumer marketing.
their accounts; this is what the clients want to know. He requires
vending operators to provide input on the number of vends per
year, what type of business the location has, and how many
people are there.
The video screen will make the opportunity even stronger,
Prezzano said. “The video screen has the trackability,” he said.
For more informaton, contact:
SPIO, 866-604-7746, www.gospio.net
“Marketers are ecstatic about it.”
Electronically reprinted with permission from Automatic Merchandiser magazine • March 2008
Vending takes
new role in
marketing
promotions
Cover Story
Cover Story
Vending takes new
role in marketing
promotions
T
Coupon dispensers in vending
machines allow consumer
product marketers to reach
consumers where they work
and go to school.
O’Neal said the more generous the offer, the more successful it is.
The SPIO system consists of a coupon dispenser that is installed
in the vending machine. When a vend is made, a promotion is
“We had new customers that never ate at Chick-Fil-A ever,”
dispensed simultaneously. It can be an offer to receive a free item
said Connie Lee, who was the marketing director for the restaurant
from a restaurant or $5 off a $25 purchase at a retail store.
when the promotion began. “With these venders, we were reaching
people we couldn’t reach.”
SPIO provides the dispenser at no cost to the participating vend-
Lee said that prior to the SPIO project, her options for pen-
ing operator. SPIO provides the operator with coupons, either plastic
or paper, in clips that are placed in the machine to be dispensed.
By Elliot Maras, Editor
etrating schools and work sites were limited.
The only cost assumed by the vending operator is the labor for
Dennis Thornton of Advanced Vending LLC, based in Ringgold, Ga., said
consumers like the SPIO coupons.
installing the dispenser.
Vending brings marketers a new tool
She previously designed nutrition education programs for
Innovations offer opportunity for vending
echnology is giving vending machines new promotional
capabilities. As a result, consumer product marketers
The ability to target a message to a consumer in the at-work en-
All of these innovations are happening at an opportune time for
get my foot in the door to get customers,” he said. “It ‘walked’
dents. In the B&I sector, she approached managers with “be our
vironment in particular has raised eyes in the marketing community.
the vending industry, since traditional vending has become increas-
them in the door. We never expected to get 15 to 20 percent
guest” coupons for free meals for employees. She even developed
ingly unprofitable due to a shrinking customer base and rising costs
return, but we did.”
inserts for employee paychecks, but this was difficult to get em-
are beginning to see vending machines as tools to do
In January, Automatic Merchandiser reported on the Quick-
more than market products for immediate consumption. They
store24™, a vending machine that has interactive video touch-
are beginning to see vending as an avenue to encourage consum-
screens, multiple payment options, and on-site dispensers that give
ers to buy a wide range of items, including financial services, TV
redeemable coupons. This system was developed by a Walker Digi-
ing industry the tools it needs to bring a higher level of value to the
services, vacation packages, and more.
tal, LLC, a company that focuses on finding solutions using modern
consumer. Preliminary indications are that this is beginning to happen.
In the past few years, technology players have developed
touchscreen video screens and coupon dispensers that can
schools that helped to get the restaurant’s name in front of stu-
information technologies.
schools. He knew that if a kid got a coupon for a free item, they
Innovations such as Quickstore24 and SPIO could give the vend™
SPIO recently completed a successful test with a Chick-Fil-A
In February, Automatic Merchandiser reported on another
O’Neal wanted to get the coupons in the hands of kids in
and more competition from other retail channels.
Connie Lee helps introduce Chick-Fil-A customers to the SPIO promotion, which allowed her to market to consumers directly.
be retrofitted to existing vending machines. These devices, on
technology solution, the SPIO system, that utilizes coupon
through vending machines within a 10-mile radius of the store.
vending machines, enable consumer product marketers to reach
dispensers and interactive video touchscreens to give vending
Consumers redeemed the offer for a free food item. The redemption
consumers in school, at the work place or in transportation and
machines new capabilities as marketing vehicles for consumer
rate was around 20 percent, which is 10 times greater than most
at entertainment hubs.
product manufacturers.
traditional coupon promotions.
Chick-Fil-A isn’t the only consumer product marketer to see merit
Lee said. In comparison, she said, “the vending machine was
did. SPIO produced the coupons for him.
wonderful.”
The SPIO promotion delivered better results than the direct
“The consumer is really liking it,” Thornton added. He said in
Dobbin Prezzano, president and co-founder of SPIO, brought
an extensive background in marketing and direct mail to vending.
In one instance, ice cream vending machines dispensed couChick-fil-a redemption rates surpass industry average
“You can’t just walk into a factory and pass out coupons,”
would bring their parents with them to the restaurant, and they
mail programs O’Neal did in the past.
restaurant in Oglethorpe, Ga. Promotional offers were distributed
ployers to agree to.
“These are very high response rates,” he said for the SPIO promo-
pons redeemable for free ice cream at the restaurant. “It was a
tions. The average response rate for a more traditional direct mail
win-win for both of us,” O’Neal said.
promotion is 2 percent.
some locations, redemption rates have been as high as 70 percent.
The average rate has been 20 percent, which is still high compared
in the vending promotion. SPIO has recently signed similar arrange-
to most coupon redemption programs, according to direct marketing
At-work consumers: a prime audience for marketers
ments with Direct TV and Blockbuster.
industry sources.
The at-work consumer has become a target market for consumer product manufacturers. Following are purchase habits of these consumers.
A key factor in the success of the Chick-Fil-A promotion was the
SPIO enhances customer experience
“It’s a pretty effective way to put your ad right in the hands of
value of the offer. In the promotion, offers were made in vending
machines for three consecutive quarters. Consumers received one
the consumer,” said Chuck Treister, executive vice president of vend
of six offers redeemable for a free item with the purchase of a snack
partners for SPIO. In addition to lifting sales for the vending opera-
or beverage.
tor, the coupon enhances the experience for the customer and the
item in the machine,” Thornton said. “It makes a significant impact.
Treister said.
There is no doubt about that.”
Another benefit that vending offers to product marketers is the
manufacturing, said coupon redemptions are not a new idea in
ability to tailor a promotion to a location. “There are different adver-
vending. However, earlier programs required some labor on the part
tisers that want to be in different venues,” Thornton said.
of the vending operator.
“A lot of (product) manufacturers have dabbled in this concept,”
said Dennis Thornton, a partner in Advanced Vending LLC, the
Don’t decide what they’re having for lunch until they’re at work
Buy lunch at least four times a week
“Most offers are worth more than the consumer is paying for the
location. “It’s what it does from a standpoint of customer relations,”
Treister, who has worked in vending operations and equipment
Purchase coffee close to work rather than close to home
SPIO is in the process of introducing a video screen to the machine that will further enhance the promotional effort. “I think this
is going to be unbelievably successful,” Thornton said.
Don’t eat dinner with their families every night
Not sure at 4 p.m. what they’re having for dinner
Use discount coupons at restaurants
extra and the marketing offer is very well targeted to the end user,
A customer receives
a redeemable coupon
from a SPIO dispenser.
resulting in a win for every party involved.
“It’s just an SKU that the driver keeps filled,” Thornton said.
85%
Purchase fuel just before, during or just after work
73%
74%
Have business related travel booked from office
Ringgold, Ga. who participated in the Chick-Fil-A promotion. What’s
unique about SPIO is that the operator doesn’t have to do anything
63%
69%
74%
54%
80%
92%
Shop for groceries during the work week
Coupon dispenser: a direct connection to consumers
Have ordered a birthday gift online
Terry O’Neal, owner/operator of the Chick-Fil-A store in Oglethorpe, Ga., agreed the promotion accomplished some things that no
Use discount coupons at grocery stores
other promotion has. “They (SPIO) could go places where I couldn’t
Source: WorkPlace Media employer survey
52%
89%
Cover Story
Cover Story
Vending takes new
role in marketing
promotions
T
Coupon dispensers in vending
machines allow consumer
product marketers to reach
consumers where they work
and go to school.
O’Neal said the more generous the offer, the more successful it is.
The SPIO system consists of a coupon dispenser that is installed
in the vending machine. When a vend is made, a promotion is
“We had new customers that never ate at Chick-Fil-A ever,”
dispensed simultaneously. It can be an offer to receive a free item
said Connie Lee, who was the marketing director for the restaurant
from a restaurant or $5 off a $25 purchase at a retail store.
when the promotion began. “With these venders, we were reaching
people we couldn’t reach.”
SPIO provides the dispenser at no cost to the participating vend-
Lee said that prior to the SPIO project, her options for pen-
ing operator. SPIO provides the operator with coupons, either plastic
or paper, in clips that are placed in the machine to be dispensed.
By Elliot Maras, Editor
etrating schools and work sites were limited.
The only cost assumed by the vending operator is the labor for
Dennis Thornton of Advanced Vending LLC, based in Ringgold, Ga., said
consumers like the SPIO coupons.
installing the dispenser.
Vending brings marketers a new tool
She previously designed nutrition education programs for
Innovations offer opportunity for vending
echnology is giving vending machines new promotional
capabilities. As a result, consumer product marketers
The ability to target a message to a consumer in the at-work en-
All of these innovations are happening at an opportune time for
get my foot in the door to get customers,” he said. “It ‘walked’
dents. In the B&I sector, she approached managers with “be our
vironment in particular has raised eyes in the marketing community.
the vending industry, since traditional vending has become increas-
them in the door. We never expected to get 15 to 20 percent
guest” coupons for free meals for employees. She even developed
ingly unprofitable due to a shrinking customer base and rising costs
return, but we did.”
inserts for employee paychecks, but this was difficult to get em-
are beginning to see vending machines as tools to do
In January, Automatic Merchandiser reported on the Quick-
more than market products for immediate consumption. They
store24™, a vending machine that has interactive video touch-
are beginning to see vending as an avenue to encourage consum-
screens, multiple payment options, and on-site dispensers that give
ers to buy a wide range of items, including financial services, TV
redeemable coupons. This system was developed by a Walker Digi-
ing industry the tools it needs to bring a higher level of value to the
services, vacation packages, and more.
tal, LLC, a company that focuses on finding solutions using modern
consumer. Preliminary indications are that this is beginning to happen.
In the past few years, technology players have developed
touchscreen video screens and coupon dispensers that can
schools that helped to get the restaurant’s name in front of stu-
information technologies.
schools. He knew that if a kid got a coupon for a free item, they
Innovations such as Quickstore24 and SPIO could give the vend™
SPIO recently completed a successful test with a Chick-Fil-A
In February, Automatic Merchandiser reported on another
O’Neal wanted to get the coupons in the hands of kids in
and more competition from other retail channels.
Connie Lee helps introduce Chick-Fil-A customers to the SPIO promotion, which allowed her to market to consumers directly.
be retrofitted to existing vending machines. These devices, on
technology solution, the SPIO system, that utilizes coupon
through vending machines within a 10-mile radius of the store.
vending machines, enable consumer product marketers to reach
dispensers and interactive video touchscreens to give vending
Consumers redeemed the offer for a free food item. The redemption
consumers in school, at the work place or in transportation and
machines new capabilities as marketing vehicles for consumer
rate was around 20 percent, which is 10 times greater than most
at entertainment hubs.
product manufacturers.
traditional coupon promotions.
Chick-Fil-A isn’t the only consumer product marketer to see merit
Lee said. In comparison, she said, “the vending machine was
did. SPIO produced the coupons for him.
wonderful.”
The SPIO promotion delivered better results than the direct
“The consumer is really liking it,” Thornton added. He said in
Dobbin Prezzano, president and co-founder of SPIO, brought
an extensive background in marketing and direct mail to vending.
In one instance, ice cream vending machines dispensed couChick-fil-a redemption rates surpass industry average
“You can’t just walk into a factory and pass out coupons,”
would bring their parents with them to the restaurant, and they
mail programs O’Neal did in the past.
restaurant in Oglethorpe, Ga. Promotional offers were distributed
ployers to agree to.
“These are very high response rates,” he said for the SPIO promo-
pons redeemable for free ice cream at the restaurant. “It was a
tions. The average response rate for a more traditional direct mail
win-win for both of us,” O’Neal said.
promotion is 2 percent.
some locations, redemption rates have been as high as 70 percent.
The average rate has been 20 percent, which is still high compared
in the vending promotion. SPIO has recently signed similar arrange-
to most coupon redemption programs, according to direct marketing
At-work consumers: a prime audience for marketers
ments with Direct TV and Blockbuster.
industry sources.
The at-work consumer has become a target market for consumer product manufacturers. Following are purchase habits of these consumers.
A key factor in the success of the Chick-Fil-A promotion was the
SPIO enhances customer experience
“It’s a pretty effective way to put your ad right in the hands of
value of the offer. In the promotion, offers were made in vending
machines for three consecutive quarters. Consumers received one
the consumer,” said Chuck Treister, executive vice president of vend
of six offers redeemable for a free item with the purchase of a snack
partners for SPIO. In addition to lifting sales for the vending opera-
or beverage.
tor, the coupon enhances the experience for the customer and the
item in the machine,” Thornton said. “It makes a significant impact.
Treister said.
There is no doubt about that.”
Another benefit that vending offers to product marketers is the
manufacturing, said coupon redemptions are not a new idea in
ability to tailor a promotion to a location. “There are different adver-
vending. However, earlier programs required some labor on the part
tisers that want to be in different venues,” Thornton said.
of the vending operator.
“A lot of (product) manufacturers have dabbled in this concept,”
said Dennis Thornton, a partner in Advanced Vending LLC, the
Don’t decide what they’re having for lunch until they’re at work
Buy lunch at least four times a week
“Most offers are worth more than the consumer is paying for the
location. “It’s what it does from a standpoint of customer relations,”
Treister, who has worked in vending operations and equipment
Purchase coffee close to work rather than close to home
SPIO is in the process of introducing a video screen to the machine that will further enhance the promotional effort. “I think this
is going to be unbelievably successful,” Thornton said.
Don’t eat dinner with their families every night
Not sure at 4 p.m. what they’re having for dinner
Use discount coupons at restaurants
extra and the marketing offer is very well targeted to the end user,
A customer receives
a redeemable coupon
from a SPIO dispenser.
resulting in a win for every party involved.
“It’s just an SKU that the driver keeps filled,” Thornton said.
85%
Purchase fuel just before, during or just after work
73%
74%
Have business related travel booked from office
Ringgold, Ga. who participated in the Chick-Fil-A promotion. What’s
unique about SPIO is that the operator doesn’t have to do anything
63%
69%
74%
54%
80%
92%
Shop for groceries during the work week
Coupon dispenser: a direct connection to consumers
Have ordered a birthday gift online
Terry O’Neal, owner/operator of the Chick-Fil-A store in Oglethorpe, Ga., agreed the promotion accomplished some things that no
Use discount coupons at grocery stores
other promotion has. “They (SPIO) could go places where I couldn’t
Source: WorkPlace Media employer survey
52%
89%
Cover Story
Cover Story
Vending takes new
role in marketing
promotions
T
Coupon dispensers in vending
machines allow consumer
product marketers to reach
consumers where they work
and go to school.
O’Neal said the more generous the offer, the more successful it is.
The SPIO system consists of a coupon dispenser that is installed
in the vending machine. When a vend is made, a promotion is
“We had new customers that never ate at Chick-Fil-A ever,”
dispensed simultaneously. It can be an offer to receive a free item
said Connie Lee, who was the marketing director for the restaurant
from a restaurant or $5 off a $25 purchase at a retail store.
when the promotion began. “With these venders, we were reaching
people we couldn’t reach.”
SPIO provides the dispenser at no cost to the participating vend-
Lee said that prior to the SPIO project, her options for pen-
ing operator. SPIO provides the operator with coupons, either plastic
or paper, in clips that are placed in the machine to be dispensed.
By Elliot Maras, Editor
etrating schools and work sites were limited.
The only cost assumed by the vending operator is the labor for
Dennis Thornton of Advanced Vending LLC, based in Ringgold, Ga., said
consumers like the SPIO coupons.
installing the dispenser.
Vending brings marketers a new tool
She previously designed nutrition education programs for
Innovations offer opportunity for vending
echnology is giving vending machines new promotional
capabilities. As a result, consumer product marketers
The ability to target a message to a consumer in the at-work en-
All of these innovations are happening at an opportune time for
get my foot in the door to get customers,” he said. “It ‘walked’
dents. In the B&I sector, she approached managers with “be our
vironment in particular has raised eyes in the marketing community.
the vending industry, since traditional vending has become increas-
them in the door. We never expected to get 15 to 20 percent
guest” coupons for free meals for employees. She even developed
ingly unprofitable due to a shrinking customer base and rising costs
return, but we did.”
inserts for employee paychecks, but this was difficult to get em-
are beginning to see vending machines as tools to do
In January, Automatic Merchandiser reported on the Quick-
more than market products for immediate consumption. They
store24™, a vending machine that has interactive video touch-
are beginning to see vending as an avenue to encourage consum-
screens, multiple payment options, and on-site dispensers that give
ers to buy a wide range of items, including financial services, TV
redeemable coupons. This system was developed by a Walker Digi-
ing industry the tools it needs to bring a higher level of value to the
services, vacation packages, and more.
tal, LLC, a company that focuses on finding solutions using modern
consumer. Preliminary indications are that this is beginning to happen.
In the past few years, technology players have developed
touchscreen video screens and coupon dispensers that can
schools that helped to get the restaurant’s name in front of stu-
information technologies.
schools. He knew that if a kid got a coupon for a free item, they
Innovations such as Quickstore24 and SPIO could give the vend™
SPIO recently completed a successful test with a Chick-Fil-A
In February, Automatic Merchandiser reported on another
O’Neal wanted to get the coupons in the hands of kids in
and more competition from other retail channels.
Connie Lee helps introduce Chick-Fil-A customers to the SPIO promotion, which allowed her to market to consumers directly.
be retrofitted to existing vending machines. These devices, on
technology solution, the SPIO system, that utilizes coupon
through vending machines within a 10-mile radius of the store.
vending machines, enable consumer product marketers to reach
dispensers and interactive video touchscreens to give vending
Consumers redeemed the offer for a free food item. The redemption
consumers in school, at the work place or in transportation and
machines new capabilities as marketing vehicles for consumer
rate was around 20 percent, which is 10 times greater than most
at entertainment hubs.
product manufacturers.
traditional coupon promotions.
Chick-Fil-A isn’t the only consumer product marketer to see merit
Lee said. In comparison, she said, “the vending machine was
did. SPIO produced the coupons for him.
wonderful.”
The SPIO promotion delivered better results than the direct
“The consumer is really liking it,” Thornton added. He said in
Dobbin Prezzano, president and co-founder of SPIO, brought
an extensive background in marketing and direct mail to vending.
In one instance, ice cream vending machines dispensed couChick-fil-a redemption rates surpass industry average
“You can’t just walk into a factory and pass out coupons,”
would bring their parents with them to the restaurant, and they
mail programs O’Neal did in the past.
restaurant in Oglethorpe, Ga. Promotional offers were distributed
ployers to agree to.
“These are very high response rates,” he said for the SPIO promo-
pons redeemable for free ice cream at the restaurant. “It was a
tions. The average response rate for a more traditional direct mail
win-win for both of us,” O’Neal said.
promotion is 2 percent.
some locations, redemption rates have been as high as 70 percent.
The average rate has been 20 percent, which is still high compared
in the vending promotion. SPIO has recently signed similar arrange-
to most coupon redemption programs, according to direct marketing
At-work consumers: a prime audience for marketers
ments with Direct TV and Blockbuster.
industry sources.
The at-work consumer has become a target market for consumer product manufacturers. Following are purchase habits of these consumers.
A key factor in the success of the Chick-Fil-A promotion was the
SPIO enhances customer experience
“It’s a pretty effective way to put your ad right in the hands of
value of the offer. In the promotion, offers were made in vending
machines for three consecutive quarters. Consumers received one
the consumer,” said Chuck Treister, executive vice president of vend
of six offers redeemable for a free item with the purchase of a snack
partners for SPIO. In addition to lifting sales for the vending opera-
or beverage.
tor, the coupon enhances the experience for the customer and the
item in the machine,” Thornton said. “It makes a significant impact.
Treister said.
There is no doubt about that.”
Another benefit that vending offers to product marketers is the
manufacturing, said coupon redemptions are not a new idea in
ability to tailor a promotion to a location. “There are different adver-
vending. However, earlier programs required some labor on the part
tisers that want to be in different venues,” Thornton said.
of the vending operator.
“A lot of (product) manufacturers have dabbled in this concept,”
said Dennis Thornton, a partner in Advanced Vending LLC, the
Don’t decide what they’re having for lunch until they’re at work
Buy lunch at least four times a week
“Most offers are worth more than the consumer is paying for the
location. “It’s what it does from a standpoint of customer relations,”
Treister, who has worked in vending operations and equipment
Purchase coffee close to work rather than close to home
SPIO is in the process of introducing a video screen to the machine that will further enhance the promotional effort. “I think this
is going to be unbelievably successful,” Thornton said.
Don’t eat dinner with their families every night
Not sure at 4 p.m. what they’re having for dinner
Use discount coupons at restaurants
extra and the marketing offer is very well targeted to the end user,
A customer receives
a redeemable coupon
from a SPIO dispenser.
resulting in a win for every party involved.
“It’s just an SKU that the driver keeps filled,” Thornton said.
85%
Purchase fuel just before, during or just after work
73%
74%
Have business related travel booked from office
Ringgold, Ga. who participated in the Chick-Fil-A promotion. What’s
unique about SPIO is that the operator doesn’t have to do anything
63%
69%
74%
54%
80%
92%
Shop for groceries during the work week
Coupon dispenser: a direct connection to consumers
Have ordered a birthday gift online
Terry O’Neal, owner/operator of the Chick-Fil-A store in Oglethorpe, Ga., agreed the promotion accomplished some things that no
Use discount coupons at grocery stores
other promotion has. “They (SPIO) could go places where I couldn’t
Source: WorkPlace Media employer survey
52%
89%
www.AMonline.com 03.08
Vending machine: a consumer destination
Barry Frankel, owner of The Family Vending Co. in Coral
Prezzano said the vending machine has an advantage for mar-
Springs, Fla., recently decided to participate in the SPIO
keters since it is a destination for the consumer. “The consumer is
network. “As long as the promotions continue to come with val-
making a particular choice to go to that machine because they’re
ues, the purchase of the drink becomes insignificant,” he said.
getting something else there,” he said.
In a previous role as a cold drink manager for a beverage
In addition to redeemable cards, the machine also dispenses
bottler, Frankel saw the ability of on-can promotions to drive
a magnetic stripe card that can be loaded with value for use in a
sales. One promotion he remembers was $5 off the price of
retail store. There is also a patented Website decoder that contains
admission to Universal Studies. “It was a great promotion
an imbedded code that becomes visible when held up to a Web
for a very large customer; it got you an account and also
page on a computer screen.
helped drive sales,” he said.
“We’ve got to bring the customer back to the vending
Prezzano, who exhibited the system at the Direct Marketing As-
machine,” Frankel said. “This will give us new value.”
sociation trade show recently, said SPIO is making waves because
In the meantime, more is being learned about the at-
the direct marketing industry is beginning to focus more on work
place marketing. What SPIO brings to the table is being able to
interact directly with the consumer.
Retailers in particular are learning that work-site marketing, which
Dobbin Prezzano of SPIO says marketers in many industries are interested in reaching consumers directly.
work consumer market.
At-work consumer: a target audience for marketers
The at-work consumer has a higher level of disposable
is also known as “alternative print media,” is a cost effective way to
target consumers with disposable income. In the work place, marketers
“Work places and vending machines are as natural a pair-
income than the rest of the population. As busy profession-
find an attentive audience for messages that focus on convenience and
ing as coffee and a doughnut,” said Dan Wheeler, executive vice
als, they are willing to pay a premium for convenience, often
value. In some cases, employers offer coupons as perks through payroll
president of WorkPlace Media, a Mentor, Ohio-based company that
saving time by running errands on office time to stores
checks, intraoffice mail or other company correspondence.
develops creative graphics and distributes them to selected work
within a 5-mile radius of where they work.
sites. “When you consider that 83 percent of working Americans
Work place marketing: an emerging industry
Work place marketing experts don’t question the role that vending machines can play in these efforts.
in commercial areas, literally surrounded by hundreds of
percent rely on some sort of vending machine snack such as gum,
stores and restaurants. Naturally, they are going to visit
chips or candy bars, the value of targeting workers right in their
these businesses more often than the average consumer –
cubicles is undeniable.”
often just to take a break from the office.
Where traditional business-to-business marketing has focused
At-work consumers’ daily
“pick me ups”
43%
their waking hours at work, they are often looking for new
relying on that party to communicate information to consumers,
“pick-me-ups” to help keep them focused and alert. At-
the vending machine offers the marketer more direct access to
work consumers are more prone to making impulse buys.
Coffee
40%
Gum
28%
Salted
snacks
25%
Candy bars
Cigarettes
19%
10%
Source: WorkPlace Media employer survey
“What I tell them (the product marketers) is we’re going to get
them to their consumer,” Prezzano said.
One example is the financial services industry, which is looking
to interact with high school and college students.
Vend product manufacturers have periodically partenered with
other consumer product marketers to offer vending customers
added value. Last year, General Mills Inc. offered $3 off any
movie or game rented at Hollywood Video and Movie Gallery on
some of its core products.
The success of the program encouraged General Mills to
introduce another $3 off any movIe or game purchased at
Best Buy on three of its core products, Sweet & Salty Bugles,
Gardetto’s Original Recipe and Chex Mix Traditional.
The offer is announced in a big colorful label on the front of the
bag. There is no work for the vending operator. “You cannot
pass any amount on the operator or it’s a ‘no go,’” said Charla
Sheffield, associate marketing manager for vending at
General Mills.
Stu Case, a partner in Pacific Brokerage Co. Inc., the Yorba
Linda, Calif.-based product brokerage, said the promotion is
better than other types of manufacturer promotions that have
been done in the past since there is no extra work required on
the operator’s part.
“It (the General Mills promotion) has driven additional cases,”
Case said.
Because the at-work consumer spends 60 percent of
on reaching the location manager or account decision maker and
the consumer.
Caffeine
beverages
At-work consumers also spend the majority of their day
rely on caffeine to get them through the day, and another 72
Vend product manufacturers add value
with on-pack offers
In the past, these highly valuable yet largely untapped
consumers had to actually leave the confines of their cubicles to forage for this elusive “something.”
Work place focused, direct marketing companies target
this valuable demographic audience and attempt to deliver
products to them in the work place.
Vendors must provide location information
In seeking vending operator partners, Prezzano said he looks
for operators who can provide demographic information about
If the recent Chick-Fil-A promotion is any indication, vending machines have a big role to play in not only work place marketing, but in many types of targeted consumer marketing.
their accounts; this is what the clients want to know. He requires
vending operators to provide input on the number of vends per
year, what type of business the location has, and how many
people are there.
The video screen will make the opportunity even stronger,
Prezzano said. “The video screen has the trackability,” he said.
For more informaton, contact:
SPIO, 866-604-7746, www.gospio.net
“Marketers are ecstatic about it.”
Electronically reprinted with permission from Automatic Merchandiser magazine • March 2008
Vending takes
new role in
marketing
promotions
www.AMonline.com 03.08
Vending machine: a consumer destination
Barry Frankel, owner of The Family Vending Co. in Coral
Prezzano said the vending machine has an advantage for mar-
Springs, Fla., recently decided to participate in the SPIO
keters since it is a destination for the consumer. “The consumer is
network. “As long as the promotions continue to come with val-
making a particular choice to go to that machine because they’re
ues, the purchase of the drink becomes insignificant,” he said.
getting something else there,” he said.
In a previous role as a cold drink manager for a beverage
In addition to redeemable cards, the machine also dispenses
bottler, Frankel saw the ability of on-can promotions to drive
a magnetic stripe card that can be loaded with value for use in a
sales. One promotion he remembers was $5 off the price of
retail store. There is also a patented Website decoder that contains
admission to Universal Studies. “It was a great promotion
an imbedded code that becomes visible when held up to a Web
for a very large customer; it got you an account and also
page on a computer screen.
helped drive sales,” he said.
“We’ve got to bring the customer back to the vending
Prezzano, who exhibited the system at the Direct Marketing As-
machine,” Frankel said. “This will give us new value.”
sociation trade show recently, said SPIO is making waves because
In the meantime, more is being learned about the at-
the direct marketing industry is beginning to focus more on work
place marketing. What SPIO brings to the table is being able to
interact directly with the consumer.
Retailers in particular are learning that work-site marketing, which
Dobbin Prezzano of SPIO says marketers in many industries are interested in reaching consumers directly.
work consumer market.
At-work consumer: a target audience for marketers
The at-work consumer has a higher level of disposable
is also known as “alternative print media,” is a cost effective way to
target consumers with disposable income. In the work place, marketers
“Work places and vending machines are as natural a pair-
income than the rest of the population. As busy profession-
find an attentive audience for messages that focus on convenience and
ing as coffee and a doughnut,” said Dan Wheeler, executive vice
als, they are willing to pay a premium for convenience, often
value. In some cases, employers offer coupons as perks through payroll
president of WorkPlace Media, a Mentor, Ohio-based company that
saving time by running errands on office time to stores
checks, intraoffice mail or other company correspondence.
develops creative graphics and distributes them to selected work
within a 5-mile radius of where they work.
sites. “When you consider that 83 percent of working Americans
Work place marketing: an emerging industry
Work place marketing experts don’t question the role that vending machines can play in these efforts.
in commercial areas, literally surrounded by hundreds of
percent rely on some sort of vending machine snack such as gum,
stores and restaurants. Naturally, they are going to visit
chips or candy bars, the value of targeting workers right in their
these businesses more often than the average consumer –
cubicles is undeniable.”
often just to take a break from the office.
Where traditional business-to-business marketing has focused
At-work consumers’ daily
“pick me ups”
43%
their waking hours at work, they are often looking for new
relying on that party to communicate information to consumers,
“pick-me-ups” to help keep them focused and alert. At-
the vending machine offers the marketer more direct access to
work consumers are more prone to making impulse buys.
Coffee
40%
Gum
28%
Salted
snacks
25%
Candy bars
Cigarettes
19%
10%
Source: WorkPlace Media employer survey
“What I tell them (the product marketers) is we’re going to get
them to their consumer,” Prezzano said.
One example is the financial services industry, which is looking
to interact with high school and college students.
Vend product manufacturers have periodically partenered with
other consumer product marketers to offer vending customers
added value. Last year, General Mills Inc. offered $3 off any
movie or game rented at Hollywood Video and Movie Gallery on
some of its core products.
The success of the program encouraged General Mills to
introduce another $3 off any movIe or game purchased at
Best Buy on three of its core products, Sweet & Salty Bugles,
Gardetto’s Original Recipe and Chex Mix Traditional.
The offer is announced in a big colorful label on the front of the
bag. There is no work for the vending operator. “You cannot
pass any amount on the operator or it’s a ‘no go,’” said Charla
Sheffield, associate marketing manager for vending at
General Mills.
Stu Case, a partner in Pacific Brokerage Co. Inc., the Yorba
Linda, Calif.-based product brokerage, said the promotion is
better than other types of manufacturer promotions that have
been done in the past since there is no extra work required on
the operator’s part.
“It (the General Mills promotion) has driven additional cases,”
Case said.
Because the at-work consumer spends 60 percent of
on reaching the location manager or account decision maker and
the consumer.
Caffeine
beverages
At-work consumers also spend the majority of their day
rely on caffeine to get them through the day, and another 72
Vend product manufacturers add value
with on-pack offers
In the past, these highly valuable yet largely untapped
consumers had to actually leave the confines of their cubicles to forage for this elusive “something.”
Work place focused, direct marketing companies target
this valuable demographic audience and attempt to deliver
products to them in the work place.
Vendors must provide location information
In seeking vending operator partners, Prezzano said he looks
for operators who can provide demographic information about
If the recent Chick-Fil-A promotion is any indication, vending machines have a big role to play in not only work place marketing, but in many types of targeted consumer marketing.
their accounts; this is what the clients want to know. He requires
vending operators to provide input on the number of vends per
year, what type of business the location has, and how many
people are there.
The video screen will make the opportunity even stronger,
Prezzano said. “The video screen has the trackability,” he said.
For more informaton, contact:
SPIO, 866-604-7746, www.gospio.net
“Marketers are ecstatic about it.”
Electronically reprinted with permission from Automatic Merchandiser magazine • March 2008
Vending takes
new role in
marketing
promotions