Inovative business idea

7/27/2019 Inovative business idea

1/15

1

Product:

WRITE IN TIME

A Stationary Vending Machine.


2/15

2

VENDING MACHINE

Introduction

My idea is to introduce a stationary vending machine. In todays developing world

innovation is required at all parts of life. Vending machines that i have witnessed are forsome drinks or food items. To bring about a change and innovation we can introduce a

vending machine that can vend stationary items.

To start with first we should know what exactly a vending machine is.The term vending machine refers to a machine that accepts payments, and dispenses a

product or service. The item dispensed by the machine may be a beverage, a snack, a

ticket, a receipt for a payment, or simply change for a larger denomination of currency.As an entrepreneur I thought of introducing it initially with some big brands (classmate,

cello, add gel, uniball and Neelgagan etc.). I mean to be clear vending machine will have

an individual brand name and initially the products in it will be of aforesaid brands.

According to my business plan the products would be taken in lots from the aforesaidcompanies

So that the products be cheaper to me.

Vending machine being small thing can be a big business if we think bigger with it.Further we can tie up with universities so as to place vending machines within the

premises of the university. Say for example Amity University.

I being a student have experienced so many people around me moving without stationary

into the class. If a vending machine is placed outside the class obviously students will

buy.

My plan also include a long term goal of making a brand of the products that will vendfrom the machine i.e. will try to follow backward integration strategy and will start

producing the products on our own.

The term vending machine refers to a machine that accepts payments, and dispenses a

product or service. The item dispensed by the machine may be a beverage, a snack, a

ticket, a receipt for a payment, or simply change for a larger denomination of currency.


3/15

3

Such machines are common in Western countries and Japan; however, they are yet to

gain a major presence in India.

PRODUCTS AVAILABLE IN VENDING MACHINE

Pen A4 sheets Eraser Sharpener Pencil Copy Stapler Stapler pin Punching machine Pen drive

Why are vending machines so uncommon in

India?

Vending machines are used all over the world for dispensing a variety of products;

however, in India, vending machines are few and far between. We believe that the reason

vending machines are not popular in India stems mainly from the lack of these machines

that have been designed exclusively for an Indian environment; because of the

uniqueness of India, machines designed for use abroad do not necessarily find a place in

India. Existing vending machines in the world are not suitable in India because of the

following reasons:-

Currency recognition technology is more difficult.


4/15

4

India has a much greater diversity ofcurrency, both coins and notes, compared tomost

Western countries. As a result, the same coin and note recognition techniques that are

used for currencies such as the dollar and the yen do not extend themselves to Indian

currency. For this reason, vending machines deployed in India are unable to accept more

than one particular kind of coin (such as a five rupee coin or a 1 rupee coin). This is a

major hassle both for the customer, who must have the right kind of change, as well as

for the vendor whose products are being sold, because he is forever locked to one

particular price for his product. This is one of the main reasons that vending machines

have not picked up in India.

Labor is a cheaper alternative.India has one of the cheapest labor forces in the world for unspecialized jobs such as

vending of products or selling of tickets, which are functionalities typically performed by

a vending machine. In countries abroad, vending machines that dispense beverages like

coffee are ubiquitous because it is expensive to employ a person to fulfill such a role; in

India, however, it would be nave to expect people to start using vending machines when

they can get cheap coffee, tea, cigarettes from roadside vendors. For a vending machineto displace an equivalent human vendor, it must not only be capable of performing all the

duties that a vendor would perform, but must also be substantially cheaper to install and

maintain than employing labor.

Environment is more rugged.

In countries abroad, vending machines are typically present in environments where the

temperature and humidity are controlled, and where security and vandalism are not

particular issues. In India, the operating environment for such machines is substantially

more demanding, and the machine must be well protected from would-be vandals.

Security needs are more stringent.


5/15

5

A related concern in any vending machine is security, which takes on three aspects. First,

the currency that is stored within a vending machine must be secured, and the machine

itself must be resistant to theft. This aspect of security is important to the vendor who has

invested in the machine.

Second, the contents of the machine must be tamper-prooffor example, no one must be

able to contaminate the beverage that a soft drink vending machine may dispense. This

aspect of security is important both to the vendor and the customer of the product.

Thirdly, the machine must guarantee that a product will be dispensed when a customer

puts money into it, and must not steal customers money through malfunction in any

circumstances. This refers to a customers feeling of security when dealing with a

machine instead of a shopkeeper. All of these concerns are very inadequately addressed

in vending machines in India today.

Current vending solutions do not offer the same convenience as from ashopkeeper.

Indians are accustomed to personalized service in shops in India, and expect the samelevel of convenience from a vending machine also. For example, a vending machine must

be able to make change and offer a variety of purchasing choices, just as a shopkeeper

would. A vending machine must also require minimum maintenance, and guarantee

maximum uptime, in order to gain widespread public use. Vending machines in India are

technologically far from satisfying these conditions today.

Culture is more conducive to human relationships.

For several products in India, such as coffee, vegetables, beverages etc., there exists a

relationship between the customer and the shop-keeper today. It is unlikely that a

customer will switch over to purchasing from a machine when such a relationship exists.


6/15


7/15


8/15

8

an advantage over our competitors by giving customers a new outlet to avail their desired

product anywhere and in seconds. We shall fulfill the needs of not just traditional pen

paper buyers but expand our reach to people who would normally not go out and shop for

such items.

We shall purchase and put to use readymade Vending Machines. Then we shall establish

relationships with companies who are interested in embedding their brand and offers

inside our machines.

VISION

Be a leader in providing best quality writing instruments in time.

Our marketing challenge is to attract visibility quickly and we intend to accomplish this

by leveraging a multi-pronged approach that involves social media, email marketing and

search engine optimization strategies to gain market share. As we gain traction in the

marketplace, word of mouth will lift our product sales.

TARGET MARKET

Our ideal customer is the ages of 13 and 25. They often a need pen at the last moment,

maybe before the start of classes, lectures, or even exams.

Our Vending Machines will provide a creative promotional method to different brands,

their products and services.

MARKET DEFINITION AND

SEGMENTATION


9/15

9

We target two segments: students and institutions.

1. Students

There are two types of customers that define the demographic of Write in time users:

teens (including pre-teens) and young adults, which for the purposes of this marketing

plan will include teenagers age 18 and above as they are considered young adults by the

general population as well as by the law.

Our strategy focuses upon launching the first set of Write in Time machines we will

stay in regular contact with our customers via numerous online methods, including social

media and email marketing; and later allowing the brands to promote their brand via our

Machines.

DIFFERENTIATORS

1. Cater to specific needs

2. Consistent Supply

PROMOTION

We will leverage social media and word of mouth for the vast majority of our marketing

using platforms such as Twitter, Facebook, Orkut and MySpace. We will make

announcements via regular tweets and updates to our fan page on Facebook.


10/15

10

SEGMENTATION

Segmentation is the process of grouping people or organizations within a marketaccording to similar needs, characteristics, or behaviors .

Segmentation is the process of placing together consumers into groups such that

consumer heterogeneity on specified characteristics is minimized within groups and

maximized across groups e.g. value for money buyers as distinct from economy buyers.

Segmentation can also be thought of as taking a market and dividing them into groups

based on some common characteristic e.g. diet-colas, regular colas.

Dividing the market into groups

An entire market rarely has the same tastes and preferences

It is difficult to handle all preferences too

Mercedes Benz, for example (only high-end)

Targeting

Is the actual selection of the segment you want to serve the target market is the group of

people or organizations whose needs a product is specifically designed to satisfy.

Positioning


11/15

11

Is the use of marketing to enable people to form a mental image of your product in their

minds (relative to other products).

STP Marketingis the name of the game

HOW TO SEGMENT A MARKET?

On what basis/bases?

What are some criteria/variables?

- BASES OF SEGMENTATION

1. Geographic- by location (same area share some similar needs & wants)-region,city size, density, climate.

2. Demographic-age, gender, marital status, income, education .

3. Phsycographic- activities (how consumer spends time), interest (preferences &priorities),opinion(feels about events) .

4. Buying behavior

A. Geographic Segmentation

The following are some examples of geographic variables often used in segmentation.


12/15

12

Region: by continent, country, state, or even neighborhood Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban, or rural Climate: according to weather patterns common to certain geographic regions

B. Demographic Segmentation

Some demographic segmentation variables include:

Age Gender Family size Family lifecycle Generation: baby-boomers, Generation X, etc. Income Occupation Education Ethnicity Nationality Religion Social class

Many of these variables have standard categories for their values. For example, family

lifecycle often is expressed as bachelor, married with no children (DINKS: Double

Income, No Kids), full-nest, empty-nest, or solitary survivor. Some of these categories

have several stages, for example, full-nest I, II, or III depending on the age of the

children.

C. Psychographic Segmentation

Psychographic segmentation groups customers according to their lifestyle. Activities,

interests, and opinions (AIO) surveys are one tool for measuring lifestyle. Some

psychographic variables include:


13/15


14/15

14

1. Save of time and distance (being installed on campus).

2. Good quality at reasonable prices.

Target Market: Organizations Who Want to Reach Youth and Young Adults

Stationery users are everywhere. Since the youth and young adult demographic is so

large, it is also very lucrative. There are countless products targeting this demographic,

from soda manufacturers to clothing designers to hair product companies. This segment

can also consist of recruiters, which can be for military service or other jobs. Companies

who already spend millions of dollars on marketing to this group are regularly looking for

newer, more creative ways to reach this market to reinforce their brand and sell products.

Emphasize Creativity, Service and

Speed to Market

We will emphasize our focus on creativity along with spectacular service and speed of

development to our clients. It is important for us to get to market quickly.

Expense Budget Summary

Marketing expenses are mostly for staff required to do the marketing activities listed. The

vast majority of the software tools needed to implement the activities, such as analytics

and landing page creation, are available for free. The exceptions to this are for specific

tools like email marketing and forums.


15/15

15

USP

Quality product within seconds.

CONCLUSION

Huge amount of investment in advertising required to grab hold of agreater market share.

Technological innovation is the future. Distribution is the Crux.

Documents

Inovative business idea