Size of the Market
The MealBox vending machine provides food and drinks services. The size of the market is rather big, considering the type of product provided by the device. However, it is targeted to a small percentage of people, as it is situated on the student campus and will provide services to them and the university staff (Brown, Flint, & Fuqua, 2014).
In terms of the major segmentation strategies, it is important to address all of them in order to make our business successful. First, the target consumers are students (high schools and university students), staff and faculty, visitors, busy consumers, and young professionals on the go, all aging from 14 to 35 years old. Second, the MealBox vending machines will be located in the university area, particularly where the concentration of students is very high. Third, the main focus will be placed on the food quality and quickness of service (Caruso, Klein, & Kaye, 2014). Additionally, as for the psychographic segmentation, our target audience is those whose purpose is to be healthy and fit (Brown et al., 2014).
Our major competitors are all the food stores at the university and the campus canteen. Additionally, among the competitors, there are various fast-food restaurants and food stores that are near the campus. MealBox may be lacking in the variety of food, but it’s quality and quick service should compensate for this disadvantage (Hollensen, 2015).
Common Promotional Practices
The vending machine is the nearest place to the campus for buying food that provides quick service and quality and healthy food. Also, a daily analysis of customer preferences will be made in order to increase sales (Grech & Allman-Farinelli, 2015).
MealBox will be installed with LED screen with video and voice capabilities. MealBox will have video games. TV advertisements will not be productive, especially considering our limited budget. We think that various print brochures and the creation of a website will be enough to present our services. There will also be discounts on different occasions (Brown et al., 2014).
As the variety of food and drinks that can be provided by the vending machine is limited, cultural differences will not be considered. Instead, the food and drinks in MealBox will be universal and applied to different cultures, for example, potatoes, tomatoes, onions, meat, fish, juices, tea, coffee, and so on (Jacobs, 2017).
Comparison to Japanese Vending Machines
Japanese are well-known for their variety of vending machines. In Japan, one can buy almost everything in vending machines beginning from food and drinks and ending with clothes, umbrellas, books, shampoos, batteries, flowers, and even cars. Like certain modern Japanese vending machines, MealBox uses a high-tech system that is capable of fast heating and cooling of food and drinks. The system is based on the circulation of heat, that is, heat from the cooling process is recycled to heat the warm products (Jacobs, 2017).
We will have one part-time person and five full-time staff, among who are two managers, one of them will oversee route staffing and physical operations, the other one will oversee front office activities, three vending machine attendants who will be responsible for daily route servicing, and one part-time person who will provide evening route servicing. The average salary for the vending machine attendants will be $2500. The managers will receive approximately $3000. The part-time person will be paid approximately $1500 (Hollensen, 2015).
Brown, M. V., Flint, M., & Fuqua, J. (2014). The effects of a nutrition education intervention on vending machine sales on a university campus. Journal of American College Health, 62(7), 512-516.
Caruso, M. L., Klein, E. G., & Kaye, G. (2014). Campus-based snack food vending consumption. Journal of Nutrition Education and Behavior, 46(5), 401-405.
Grech, A., & Allman‐Farinelli, M. (2015). A systematic literature review of nutrition interventions in vending machines that encourage consumers to make healthier choices. Obesity reviews, 16(12), 1030-1041.
Hollensen, S. (2015). Marketing management: A relationship approach. London, England: Pearson Education.
Jacobs, H. (2017). . Web.