Operations management and marketing in the vending machines sector in Portugal

Abstract

Vending machines have emerged from the ‘self-service’ concept, being located in a particular place, making available to potential customers food, hot and cold drinks, among other products. These machines are prepared for processing a transaction, through customer’s payment, without personal attendance and with the condition of satisfying an order of the client. Nowadays, due to people’s lifestyle, these machines are located in several strategic places, namely hospitals, schools, companies, with the most varied and diverse products. Lack of time is common in everyday life, people not wanting to wait in queues. Thus, vending machines are each time more appealing for several customers’ segments. The market of vending machines has been increasing at an accelerated rate, becoming a tendency in marketing. Moreover, these machines have more and more an attractive and modern design. Therefore, operations management and marketing are complementary concepts regarding vending machines, being part of its management process, and always having in mind customers’ needs. This research aims to explore the vending machines concept in all its phases. In Operations Management, regarding the planning and supply chain management of products, markets, targets, quality and employees’ training. In addition, regarding the vending machine itself, it is important to note that operations include the maintenance management, the information system used and the response to new technologies. Marketing, on the other side, is responsible for identifying customers’ needs and expectations, planning all the strategies / promotions in the acquisition and sale of products. The installation of a vending machine, if well planned, can be part of a well defined marketing strategy, aiming to reinforce the brand power and its impact in achieving the target and consequent sales development. Having in mind both the research aim and the different customer’s profiles of vending machines, this study employs triangulation, mixing qualitative and quantitative methods. Initially, four focus groups will be conducted, two in a university and two in a secondary school, both in the North of Portugal. In a later stage, a quantitative study, via questionnaire, will be conducted within the same institutions. The selection of these groups was made in order to understand the preferences and use of vending machines in different contexts and ages. Moreover, both groups, from secondary schools and universities, are key customers of vending machines. Summarizing, this working paper attempts to assess the requirements and different perspectives on the selected products, quality, diversity, cost, machine design, handling, potential problems, customer needs and satisfaction and other aspects that may emerge in the focus groups.