Social Vending Machines (Brian Gottschalk, Jamie Jakubowski, Steven Manne, & Stephanie Mohan)
At the NAMA One Show in Chicago this past April, PepsiCo introduced a new technology that they have been designing called the social vending machine. The concept behind PepsiCo’s social vending machine is to combine social media technology with a traditional vending machine. This new version of the vending machine offers an interactive touch screen that allows users to interact with other customers as well as give back to the local community. The social vending machine is an interactive technology that has been created to build relationships between the corporate world and the consumer. It offers PepsiCo a way to attract buyers to their brand and give these consumers a chance to get to know their products in a non-traditional way. The PepsiCo social vending machine is an innovative and unique idea for the organization to use to gain a competitive advantage over its competitors.
PepsiCo’s social vending machines will be both similar and unique in comparison to other vending machines, as they will have similar sizes and shapes to current models, but will also incorporate a touch screen and a variety of interactive options. These social vending machines will offer the consumer a range of menu choices to choose from such as buying a drink, gifting a drink/redeeming a gift, and connecting with the local community through Pepsi’s Refresh Project. When gifting a drink to another party, consumers have the option to record a short video to send to the receiver and once the transaction is complete, the receiver of the gift will be sent a text message or email notifying them that they can redeem their gift. In addition, PepsiCo has now started offering product nutrition information upon request prior to the product being purchased for those health conscience consumers. With this new interactive social media technology, Pepsi is hoping to gain more market share and stay a major competitor in their industry.
In the new era of social media technology, Pepsi is looking to develop a business strategy that will help to increase the visibility of its brand. Through the use of social media technology, Pepsi can incorporate its vending machines with a message distribution technology to connect consumers to their brand more effectively than they could through traditional technology and advertising. This new innovative technology will open PepsiCo’s consumer market by targeting the on-the-go consumers and will establish an open communication channel between the brand and the consumer regardless of their location. Another benefit that social media technology offers Pepsi is the ability of the company to build brand equity by focusing on loyalty and trust with its consumers. A social media marketing tool that can help to cultivate PepsiCo’s relationships with consumers is through their Facebook page, where consumers can “like” the product and stay connected with the brand. In addition, the new social vending machine technology can develop new consumer loyalty by linking their brand with a goodwill gesture of “gifting” to another person or on a bigger scale through the Pepsi Refresh Project. Furthermore, PepsiCo can use its new interactive technology to enhance customer engagement. The difference between PepsiCo’s new social media technology and those of competitors is that it extends social engagement beyond the world of social network sites, and adds a physical component to the digital interaction. Pepsi looks to benefit from this unique interaction between physical and digital engagement to stay ahead of its competitors, such as Coca-Cola, as they too are introducing an interactive vending machine called Freestyle that allows users to customize their drinks.
With the implementation of a new technology, there are many challenges and opportunities that a company must address. One of the first challenges PepsiCo will have to tackle is the challenge of getting consumers to utilize their new social media technology over other popular social media avenues. With popular social networking sites, such as Facebook and Twitter, PepsiCo will have to make their social media technology relevant and an appealing technology that consumers will want to keep coming back to. Another potential challenge that PepsiCo will have to overcome is the availability and ease of access to their social vending machines. PepsiCo will have to look at potential markets where they can advertise their social vending machines, such as large corporate offices or college campuses. This way a large number of people can have access to multiple machines. A third challenge that PepsiCo will have to face is the initial upfront investment that the company will have to make in R&D to develop this new product as well as the costs of having an adequate supply of these machines available in enough areas to be successful. As with all companies trying to stay afloat and a head of competitors in this economy, PepsiCo will also have to face the challenge of the current economic conditions and the reality of consumers being more careful with their spending habits. With tighter budgets, consumers will be spending less on non-essential products and more on the items that they need to survive. A final challenge that Pepsi will have to overcome is the legal and ethical battles over privacy of consumer information and the threat of identity theft. PepsiCo’s social vending machines will store personal information about their consumers and they will have to make sure that they have the proper controls in place to protect this data. While storing personal information about their consumers can be a challenge for PepsiCo, it can also be an opportunity for the company. Having access to this type of data, can give PepsiCo more opportunities for mass marketing and customer segmentation.
To close, PepsiCo has developed a new innovative technology the social vending machine that has the potential to provide the company with a competitive advantage over its competitors. This new technology will help PepsiCo digitally connect its brand to consumers, build brand equity by building and maintain relationships with customers, and build customer engagement by connecting individuals to their local communities. Through this new product, PepsiCo will reinvent their brand and gain a competitive advantage over its competitors and a larger market share.
University Of Wisconsin - Whitewater
PepsiCo’s social vending machines will be both similar and unique in comparison to other vending machines, as they will have similar sizes and shapes to current models, but will also incorporate a touch screen and a variety of interactive options. These social vending machines will offer the consumer a range of menu choices to choose from such as buying a drink, gifting a drink/redeeming a gift, and connecting with the local community through Pepsi’s Refresh Project. When gifting a drink to another party, consumers have the option to record a short video to send to the receiver and once the transaction is complete, the receiver of the gift will be sent a text message or email notifying them that they can redeem their gift. In addition, PepsiCo has now started offering product nutrition information upon request prior to the product being purchased for those health conscience consumers. With this new interactive social media technology, Pepsi is hoping to gain more market share and stay a major competitor in their industry.
In the new era of social media technology, Pepsi is looking to develop a business strategy that will help to increase the visibility of its brand. Through the use of social media technology, Pepsi can incorporate its vending machines with a message distribution technology to connect consumers to their brand more effectively than they could through traditional technology and advertising. This new innovative technology will open PepsiCo’s consumer market by targeting the on-the-go consumers and will establish an open communication channel between the brand and the consumer regardless of their location. Another benefit that social media technology offers Pepsi is the ability of the company to build brand equity by focusing on loyalty and trust with its consumers. A social media marketing tool that can help to cultivate PepsiCo’s relationships with consumers is through their Facebook page, where consumers can “like” the product and stay connected with the brand. In addition, the new social vending machine technology can develop new consumer loyalty by linking their brand with a goodwill gesture of “gifting” to another person or on a bigger scale through the Pepsi Refresh Project. Furthermore, PepsiCo can use its new interactive technology to enhance customer engagement. The difference between PepsiCo’s new social media technology and those of competitors is that it extends social engagement beyond the world of social network sites, and adds a physical component to the digital interaction. Pepsi looks to benefit from this unique interaction between physical and digital engagement to stay ahead of its competitors, such as Coca-Cola, as they too are introducing an interactive vending machine called Freestyle that allows users to customize their drinks.
With the implementation of a new technology, there are many challenges and opportunities that a company must address. One of the first challenges PepsiCo will have to tackle is the challenge of getting consumers to utilize their new social media technology over other popular social media avenues. With popular social networking sites, such as Facebook and Twitter, PepsiCo will have to make their social media technology relevant and an appealing technology that consumers will want to keep coming back to. Another potential challenge that PepsiCo will have to overcome is the availability and ease of access to their social vending machines. PepsiCo will have to look at potential markets where they can advertise their social vending machines, such as large corporate offices or college campuses. This way a large number of people can have access to multiple machines. A third challenge that PepsiCo will have to face is the initial upfront investment that the company will have to make in R&D to develop this new product as well as the costs of having an adequate supply of these machines available in enough areas to be successful. As with all companies trying to stay afloat and a head of competitors in this economy, PepsiCo will also have to face the challenge of the current economic conditions and the reality of consumers being more careful with their spending habits. With tighter budgets, consumers will be spending less on non-essential products and more on the items that they need to survive. A final challenge that Pepsi will have to overcome is the legal and ethical battles over privacy of consumer information and the threat of identity theft. PepsiCo’s social vending machines will store personal information about their consumers and they will have to make sure that they have the proper controls in place to protect this data. While storing personal information about their consumers can be a challenge for PepsiCo, it can also be an opportunity for the company. Having access to this type of data, can give PepsiCo more opportunities for mass marketing and customer segmentation.
To close, PepsiCo has developed a new innovative technology the social vending machine that has the potential to provide the company with a competitive advantage over its competitors. This new technology will help PepsiCo digitally connect its brand to consumers, build brand equity by building and maintain relationships with customers, and build customer engagement by connecting individuals to their local communities. Through this new product, PepsiCo will reinvent their brand and gain a competitive advantage over its competitors and a larger market share.
University Of Wisconsin - Whitewater
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