Marketing Tactics for Candy and Snack Vending Machines
The large candy and snack companies are encouraging vending machine operators to upgrade to large-sized candy bars and snacks as it will be a great revenue generating opportunity. Beverage and soda companies were first to offer such an upgrade in their products to vending operators, going from 12-ounce to 20-ounce beverages.
Several benefits are associated with such an upgrade in the size and quantity of snacks and beverages. Vending operators can gain advantages in various forms that were not possible in case of the conventional sized candy or beverages.
In fact, while presenting this upgrade to Planet Antares vending operators, beverage companies propose three main advantages to them. These include the following:
1) Benefits for vending operators
Vending operator would benefit from the upgrading to large sized bottles in the long run. Even though the vending operator would realize lower gross margins, the gross dollar profit will increase for the same.
2) Benefits for manufacturers
The beverage manufacturer will gain as the margins will improve. These will definitely be higher when they sell 20-ounce beverages instead of the 12-ounce beverages.
3) Benefits to customers
The customer will benefit from purchasing a 20-ounce beverage since he would receive 8 more ounces of product at a lower per ounce cost than if they choose to purchase a traditional 12-ounce beverage.
An often used tactic in the food vending industry is that of trade-up marketing. Many of the fast food chains have increased the beverage sizes dramatically for a small rise in prices, allowing the customers to get more value for their money.
In other cases, a small beverage option is completely eliminated. Some of the convenience stores no longer offer a 12-ounce coffee or soda and only provide a 20-ounce beverage serving. As consumers demand larger products at a small upgrade cost, many vending machine companies are experiencing success with the technique of trade-up marketing.
Several benefits are associated with such an upgrade in the size and quantity of snacks and beverages. Vending operators can gain advantages in various forms that were not possible in case of the conventional sized candy or beverages.
In fact, while presenting this upgrade to Planet Antares vending operators, beverage companies propose three main advantages to them. These include the following:
1) Benefits for vending operators
Vending operator would benefit from the upgrading to large sized bottles in the long run. Even though the vending operator would realize lower gross margins, the gross dollar profit will increase for the same.
2) Benefits for manufacturers
The beverage manufacturer will gain as the margins will improve. These will definitely be higher when they sell 20-ounce beverages instead of the 12-ounce beverages.
3) Benefits to customers
The customer will benefit from purchasing a 20-ounce beverage since he would receive 8 more ounces of product at a lower per ounce cost than if they choose to purchase a traditional 12-ounce beverage.
An often used tactic in the food vending industry is that of trade-up marketing. Many of the fast food chains have increased the beverage sizes dramatically for a small rise in prices, allowing the customers to get more value for their money.
In other cases, a small beverage option is completely eliminated. Some of the convenience stores no longer offer a 12-ounce coffee or soda and only provide a 20-ounce beverage serving. As consumers demand larger products at a small upgrade cost, many vending machine companies are experiencing success with the technique of trade-up marketing.
posted by Jane Dickens at
3:44 AM
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