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ZoomShops: The Va Va Voom of Vending Machines Kelsey Smith Natalie Moreland Charles Lesnak

ZoomShops: The Va Va Voom of Vending Machines Kelsey Smith Natalie Moreland Charles Lesnak. What is a ZoomShop?. Interactive automated retail store/brand name luxury products iPod, Rosetta Stone, Perfumes Cutting Edge Technology to attract customers Touch screen

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ZoomShops: The Va Va Voom of Vending Machines Kelsey Smith Natalie Moreland Charles Lesnak

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  1. ZoomShops:The Va Va Voom of Vending MachinesKelsey SmithNatalie MorelandCharles Lesnak

  2. What is a ZoomShop? • Interactive automated retail store/brand name luxury products • iPod, Rosetta Stone, Perfumes • Cutting Edge Technology to attract customers • Touch screen • Guides shoppers through buying process • Retailers are able to sell their products in ZoomShops, where they normally wouldn’t set up standalone stores • Located in Airports, Malls, and Macy’s http://zoomsystems.com/videos/demo/zoom_demo.html

  3. Channel Levels Zero-level • Customers are able to access products directly through the machine • Cuts out the middle man (no intermediaries) • Products sold in ZoomShops are well known brands that have already established great branding power (ie: iPod) • Comparable to internet, except customers get instant gratification without dealing with sales people Channel Member Distribution Intensive distribution • Sales will increase due to more access to products • Channel costs are reduced • Customer convenience, access to many popular items • Contradiction to Intensive distribution: Prices are not lower than retail stores

  4. Planning Considerations Problems that could arise- • Taking over physical jobs (ie: retail clerks, inventory managers, etc) • No employees to help if something goes wrong (ie: machine malfunction) • No physical customer service/only virtual • Age discrepancies-focus seems more on younger consumers • What happens when the novelty wears off? • Are consumers only attracted because ZoomShops are new? Or will they continue to gain consumer attraction?

  5. Value Added-Consumers Consumers • Convenient • Longer hours • No long lines • Easy shopping experience • Less pressure from retail sales clerks • More shopping options-for some items consumers may go to retail store, but for others they can use a ZoomShop for quick shopping • Easy Returns: same guarantee as in retail stores

  6. Value Added-Producers • Cuts costs • No intermediary (Retail clerks, employess) • Leasing is less than that of a retail store • Inventory is taken automatically and numbers are sent to distributors • ZoomShops handles distribution and replenishment • Small Kiosk/Huge revenue • Traditional vending machines-$360/mo in sales per square foot & Airports bring in around $1000 per square foot for specialty stores • Vs. ZoomShops- between $3,000 & $10,000 per square foot • New Locations • Less expensive way to test locations for product expansion • Helps companies make decisions on permanent location/stores

  7. ZoomSystems have chosen an effective channel of distribution to target consumers. With many options and benefits, ZoomShops are able to reach consumers in an innovative way and understands that consumers are always looking for easier and more convenient ways to gain access to the products that are consumed.

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