Minor Project Report

On

“A study on vending machine and business problems in

India”

Submitted for the partial fulfilment towards the award of the

degree in
Master of Business Administration affiliated to
Dr. A.P.J Abdul Kalam Technical University, Lucknow

Submitted by:
Name of the student in Capital letters

ROLL No. --
0220MBA088,0221MBA181,0221MBA104,0221MBA160,0221MBA052

Batch: MBA 2022-24

Under the supervision of

Dr. Manju Nandal

SCHOOL OF MANAGEMENT

Noida Institute of Engineering and Technology (NIET)

(AN AUTONOMOUS INSTITUTE} Affiliated to DR.
A.P.J. Abdul Kalam Technical University, U.P, Lucknow, PlotNo
.19 Knowledge Park II, Greater Noida, Gautam Buddha Nagar,
(UP), India 201306
 DECLARATION

We hereby declare that project entitled “Vending machine business problems in India” is a

record of original work done by me. The findings and conclusions of this project report are based

on my study and experience, and are conducted under the guidance of DR. Manju Nandal

We also declare that this project is result of my effort and the report is submitted in partial

fulfilment of the requirements of MBA program of Noida Institute of Engineering and Technology,

Greater Noida and it is not being submitted to any other institution for award of a degree or any

personal favor. All details stated above and analysis provided in the report are and hold the best of

my knowledge and belief.

 Acknowledgement

I take this opportunity to thank Dr. Sonia Munjal for giving me the opportunity to

work for this project and I would like to express my sincere thanks to Dr Manju

nandal who helped, inspired and mentored me and without their help this project

report would not have taken its current shape. Under their brilliant untiring

guidance, I could complete the project being undertaken on the “Vending machine

business problems in India” successfully in time. Their meticulous attention and

invaluable suggestions have helped me in simplifying the problem involved in the

work. I would also like to thank the overwhelming support of all the people who

gave me an opportunity to learn and gain knowledge about the various aspects of

the industry. I once again express my heartfelt in deftness to all-aforesaid. Any

omission or error in acknowledgment is inadvertent. For such oversights and

lapses, I tender unconditional apology.

 TABLE OF CONTENT
ITEM NO PARTICULARS PAGE NO.

1. INTRODUCTION 1--6

2. OBJECTIVE OF THE 7--8

STUDY
3. LITERATURE 9--11
REVIEW
4. COMPANY/ 12--17
INDUSTRY PROFILE
5. RESEARCH 18--19
METHODOLOGY
6. DATA ANALYSIS & 20--25
DISCUSSION
7. FINDINGS 26--28
8. RECOMMEDATION 29--31

9. MANAGERIAL 32--35
IMPLICATIONS OF
THE STUDY
10. CONCLUSION 36--38

11. REFERENCE 39--41

12. ANNEXURE 42--45

 INTRODUCTION

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 INTRODUCTION
A vending machine is a machine for business, which dispenses certain products to the customers
after they insert currency or credit inside the machine. The first vending machines were in
ancient Greece. The first modern commercial coin-operated vending machines were introduced
in London, England, in the early 1880’s. Richard Carlisle, an English publisher and book shop
owner, invented a vending machine for selling books around the same time. In 1888 the Thomas
Adam’s Gum Company introduced the very first vending machine to the United States. Pulver
Manufacturing Company added animated figures to its Gum machine as an added attraction. A
completely coin-operated restaurant called Horn and Hardart was opened in 1902 and stayed
opened until 1962 in Philadelphia. Moreover, an American inventor named William Rowe
invented a cigarette vending machine. The first automatic vending machine started dispensing
soda into cups. Ventilators manufacturing company of Fresno, California made a series of classic
vending machines during the 40’s and 50’s that mostly sold Coca-Cola and Pepsi. Famous
ventilators included the VMC 27 and VMC 33.

Advanced uses/applications
With recent massive technological changes, we have come across some other non-traditional uses
of vending machines where have witnessed machines that dispense gold, newspapers and many
other. The first and foremost step in starting new business venture is to find out suitable business
model. As entrepreneurs looking for different alternative scenarios and analyzing them thoroughly
from social, economic and environmental prospective is very important. Hence, we develop some
business model as alternative and finally select the best business model (alternative), so that the
business venture

becomes long life. Factors to be considered while selecting the appropriate business model are:

 Availability of competitors

 Availability of resource

Technical and financial suitability

 Availability of potential customers

 Social, economic and situation and etc.

Considering all the above factors, analysis and evaluation of business have been made and finally
we decide to do the vending machine business idea.

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Minor Problem
 What is the most preferred type of goods that consumers are willing to purchase?

 What is the consumer’s spending capacity?

 What are the most desired locations for vending machines?

 What is the rate of profitability?

 What are the benefits that the consumer can get out of this machine?

 How acceptable is the project, in terms of convenience and efficiency, for the
consumers?

SCOPE OF THE STUDY

➢ Study pertains to the challenges faced by vending machine business impact on the Indian
economy.

➢ Study purely covers different strategies initiated by the vending machine business.

➢ The study takes deep into vending machine business challenges.

➢ Study depends on the data given by the vending machine business.

Survey and assess the aggregate size of the vending machine business problems.

NEED OF THE STUDENT

➢ To study what is the role of vending machine business Indian economy.

➢ To know how to operate the variables to manage vending machine business

challenges/problems.

➢ To comprehend the execution of the vending machine business problems of India economy
and other countries.

➢ To recognize levels of vending machine challenges face by India.

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 ➢ To understand the steps taken to improve in vending machine business problems by the
vending machine business.

➢ To know the methods adopted by vending machine industry for the management of vending
Machine challenges and facto

History
In 1867 two more patients were granted one went to the German inventor and engineer Car lade
who build models of machines to sales handkerchiefs, Cigarettes and confections the second was
granted in Britain for a fortune telling device design to answer questions by the coins inserted into
it. Perceiver Everitt received a UK patient in 1883 for a post card vendor. Two year later he got a
patient for an improved version of the machine. These smart vending machines enable a more
interactive user experience, and reduce operating costs while improving the efficiency of the
vending operations through remote manageability and intelligent back-end analytic. Integrated
sensors and cameras also represent a source of such data as customer demographics, purchase
trends, and other locality-specific information. It also enables better customer-engagement for the
brands through interactive multimedia and social media connectivity. Smart vending machines
were No.79 by JWT Intelligence on its list of 100 Things to Watch in 2014. In 1893, Stollwerck,
a German chocolate manufacturer, was selling its chocolate in 15,000 vending machines. It set up
separate companies in various territories to manufacture vending machines to sell not just
chocolate, but cigarettes, matches, chewing gum, and soap products.

A late 19th century machine from London,

England. These units deliver post cards
stamped envelope and note paper and could
be found in railway stations

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First Century
The earliest vending machine was invented by a man named Hero Alexandria in the first century.
Hero Alexandria, a Greek engineer and mathematician, created a machine that accepted a coin,
before dispensing holy water. At the temples when citizens worshipped, this device ensured that
people were not taking more than their fair share of holy water. When users inserted the coin into
the machine, it would land on the pan which wa connected to a lever. The weight of the coin on
the pan would be heavy enough to pull on the lever, enabling the valve to open and flow holy
water. The pan continued to slant until the mass of the coin would drop. When the coin had
completely fallen off the pan, the lever retracted, and the valve would close.

19th Century
Beverage machines that dispensed soft drinks into cups were devised in the early 1900s. This idea
flourished a few decades after, whereby vending machines started offering bottled drinks to their
customers. Coca-Cola was the first company to sell their bottled drinks through vending machines.

In 1946, coffee vendors were developed, followed by refrigerated sandwich vendors in 1950.
Several decades later, in 1984, Automatic Products International Ltd. introduced a vending
machine which could ground coffee beans and produce fresh brew.

20th Century – Present Day

Nowadays, we have a wide range of vending machines which are able to dispense all manner of
things, including; snacks, fresh food, hot and cold beverages, electrical items and more. Vending
machines are found all across the world in various commercial and non-commercial environments.
Back in the day, vending machines would only accept coins, as it was easier to identify counterfeit
coins than notes. Older vending machines would often take counterfeit notes because they could
be easily imitated to look like the real deal. Today, vending machines are advanced enough to be
able to recognize real coins, notes and give the right amount of change when the user makes the
payment. The technology can compare physical characteristics, such as the diameter, thickness
and the number of ridges on the edge, to detect and verify coins. Newer, advanced vending
machines can determine the chemical composition of coins and use optical scanning to identify
notes. Some vending machines have miniature digital cameras which scan images of the notes and
verify whether the real currency was inserted, by looking for specific patterns. Other vending
machines use an ultraviolet scanner to authenticate real notes by measuring the amount of glow
that’s emitted. As genuine notes contain fluorescent ink, it will glow when ultraviolet light shines
on it. Also, many vending machines use a magnetic reader to authenticate the notes because real
bills are printed using magnetic ink.s we now live in a digitalized environment, vending machines
are continuously getting smarter and smarter. Companies have successfully implemented credit
card readers, as it is rare to find people carrying a lot of cash on them these days. The rise of Apple

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Pay, Android Pay, and other mobile payment options make customers more inclined to make a
purchase, as well as helping vending companies boost their sales.

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 Objective of the Study

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 Objective of the Study

➢ To study the challenges face by vending machines business problems in India.

➢ How to overcome from those challenges in vending machine business problem in India.

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 Literature Review

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 Literature Review

➢ In a study by J. K. Patel and K. B. Patel (2020), the authors explored the challenges faced
by the vending machine business in India. The study found that the lack of awareness
among consumers and the technical issues related to the machines were the two main
challenges faced by the industry. The study also highlighted the need for more education
and awareness campaigns to increase the popularity of vending machines.
➢ In a report by Frost & Sullivan (2018), the authors highlighted the increasing demand for
convenience food and the rise of e-commerce as the key drivers of the vending machine
business in India. The report also noted the need for more innovation in the design and
functionality of vending machines to meet the changing consumer preferences.
➢ In a study by S. K. Goudar and G. K. Jindal (2017), the authors explored the potential of
the vending machine business in India. The study found that the vending machine market
in India had significant growth potential, given the increasing demand for convenience
food and the growing trend of cashless transactions. The authors also noted the need for
more research to understand the preferences and behavior of Indian consumers.
➢ In a study by A. Bhattacharya and M. K. Bhatt (2017), the authors explored the factors
influencing the adoption of vending machines in India. The study found that the lack of
awareness and education among consumers, the high cost of the machines, and the lack of
proper infrastructure were the key factors hindering the adoption of vending machines in
India. The authors recommended the need for more education and awareness campaigns,
as well as the

➢ Nilani Ratnasri , Tharaga Sharmila) International journal of Sciences 160-166,2021 A food

environment has only recently being studied as an important contributor decision people
make every day decisions which ultimately impact both short and long term health
outcome.

➢ (K Singh, G Arora) Journal of Reliable Intelligent .. 2021 Generally the nutrition

environment in the majority communities in the US focus is on convenience, fast food and
large portion sizes and neglects fresh fruits and vegetables.
➢ (A Kumar) – Vikalpa, 2018 A lager number of leading organizations in health and nutrients
including the world Health Organization, the Institute of medicine , the international
Obesity taskforce, and the centers of disease Control and prevention " Have identified
environmental and policy interventions as the most promising strategies for creating
population wide improvements in eating, physical activity and weight status".
➢ (K Udayai) Innovative journal of business 2013 The application of NEMS to fast food and
sit down restaurants revealed that 22% of sit down restaurants and 36% of the fast food
restaurants assessed in healthy main dishes however, of all the main dishes assessed in this
study less than 9% were consider healthy.

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 ➢ During the past few decades, there are many studies in the literature dealing with the related
theme of vending machines. These literatures described the development and innovation
of vending machine and suggested the benefit as well. About two decades ago, Quelch and
Takeuchi (1981) predicted that the vending machine would become one of the most
important non-store marketing channels in the world, and marketing of vending machines
has been developed successfully.

➢ Prof. Suhail Naik International journal of Sciences,2015 proposed an FSM based automatic
dispense machine while has an expiry date feature using VHDL, in this paper the author
describe finite state machine using Exiling ISE 14.2.
➢ Dr. Preeti sharma Innovative journal of business 2013 proposed a Reverse vending
machine based on FPGA and in this paper the author describe FPGA based vending
machine.

➢ Dr aman Qureshi International journal of Sciences 2014 proposed FPGA based vending
machine which supports four products and two coins. It accepts coins as input in any
sequence and dispense product when required amount is deposits and return the change if
the amount is greater than the price of the products.

➢ It also supports added features through which a user can withdraw the request any time and
entered money will be back.

➢ The algorithm is implemented in Verilog HDL and design is implemented.

➢ Ragunathan JayaramanHaspirudin Bin BasironPavithra Malar Sanga Pillai 2014This
research focused on programming the microcontroller by using Hierarchical Finite State
Machine (HFSM) method. FSM is a mathematical model of computation method which
used to design both computer programs and sequential logic circuits.

➢ Vijaya Krishna V V SA. MonishaSk. SadullaJ. Prathib 2013This paper describes the design
and implementation of an automatic beverages vending machine using FSM as this
technique has more advantages compared to previous ones used in vending machine
design. The whole design is functionally verified.

➢ Procedia CIRP Eriyeti Murena Vennan Sibanda Solomon Sibanda Khumbulani Mpofu
Innovative journal of business 2013 Vending machines are available in many public places
for vending of items like snacks, beverages, newspapers, tickets and smoking cigarettes
Recently developed vending machine requires a control system to offer a variety of
products to the general public.

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 Industry profile

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 Industry profile

Enterprise description:
The size and scope of the industry: -The size of our business is basically inside the country along
each city’s and zones by distributing different types of vending machines based on the society
feeling and interest. It has a large scope due to its different type of products distribution line and
installation of different type of product dispenses vending machine around different city in
different places. And also, this business is new for our country therefore we can increase our scope
by looking customer feedback.

Our vending machine market is segmented on the base of product type which includes beverages
vending machine and food vending machine. Among both of this segment food vending machine
expected to show a healthy growth during the forecast period. Beverage vending machine is further
sub segmented as hot beverage vending machine, cold beverage vending machine and
soda/beer/liquor/wine vending machines. More over food vending machine is further sub
segmented as candy vending machine, snack vending machine, fresh food vending machines, and
others. Further segmented on the basis of end use which includes airport, corporate office,
school/colleges, hotels, gymnasiums, and hospitals. Due to those different segments these
businesses show a good futurity and profitable.

Life cycle of business:

The business life cycle refers to the succession of stage goes through. It is away to trace the stages
of company product acceptance from its introduction to its demise (end or fall). Identifying the life
cycle helps the industry in the following ways:

 To know where the product exists at this moment.

 Predict what may happen in the future.

 To select the appropriate strategies to be followed.

 To identify competitors at different stages.

Enterprise competitiveness:
Another is when stocking the machines; you need to offer a different product mix to capture the
particular segment of customers. Provide a customer satisfaction survey card at vending locations
so your customers can leave feedback and suggestions. Customer feedback gives you the
opportunity to provide better customer service by finding out what people want. Satisfied

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customers translate into higher profits. And the best ways to attract customers is to keep the
machines well-maintained and cleaned. People won’t come back to a machine that is frequently
out of order or machines that take their money without giving them an item in return. When the
machine isn’t working well, make it a priority to repair the problem quickly to prevent losing
business and money. Concentration competitiveness of food and beverage suppliers & product
buyers are also an important factor for the competitiveness of business. Another thing to be
considered for competitiveness of business is selling price of the product.
Some of the appropriate pricing or marketing method to compete and satisfy customer needs are

 Free service on different occasion to create awareness towards products

 Supply our product to market with affordable price and etc.

Market potential:

Market potential of this business is high because the product is different segments of market and
the usage and demand of the product is high. And also, the market has variety of choices for the
buyer to satisfy their interest.

In this business, we will add some branded products from external supplier by importing those
products at affordable price for the customer.

Sales projection:
Vending machines let the customers buy items without the need of standing in line for a long time.
The customers simply deposit their money in the machine and then select the item of their choice.
Vending machines have myriad benefits, which are best taken by the vendors.

 Immediate flow of cash Your cash flow can start as soon as your equipment is placed. Most
new businesses fail, in large part, from lack of cash flow in the beginning. One of the many benefits
of vending machines is your cash flow can start at day 1.

 Working 24/7 It’s like having a sales team working 24 hours a day - with no coffee breaks, no
sick leaves, and no unpredictable performance because of emphatic factors. Reduction of overhead
costs by not hiring of staff only increases the profit margin for you, making it a success.

The selling price of our products can be summarized as follows in tabl;-

Products Unit Price(birr)

Different snacks Piece 4 birr- 30 birr

Soft drinks Per cup/bottle 6 birr – 10 birr

Hot beverage Per cup 2 birr- 6 birr

Water Per pics 6 birr – 10 birr

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Soda Per tin 15 birr
Chocolates Per pics 10- 50 birr

Others - Based on each type

Access to market outlets:

A key feature of the vending machines is their location adaptability. They can be installed almost
everywhere as they need a small area to be put up. In the past, vending machines were installed in
places seen as large catchment areas (captive environment). Most machines are found in busy
locations such as factories, offices, warehouses and transport hubs as railway stations, airport
terminals, cruise ships and public areas. Today, vending machines are often site in theatre and
hotel lobbies, garage spaces, drugstores, hospitals and schools. Their main considerations here are
that certain items dispensed through the vending Dover, Delaware, United States

1-10, Seed, Private, www.vendekin.com,32,294,Highlights,Total Funding Amount, ₹85M,

Employee Profiles

1-Investors
4-Similar Companies

1-Recent News & Activity

News

•May 30, 2022

The Economic Times — Vend kin Technologies raises Rs 8.5 crore in funding led by Better
Capital

Funding Round
•May 30, 2022

Vend kin raised ₹85,000,000 / Seed from Better Capital and 2 other investors
Discover more funding rounds

Funding Round
•Nov 3, 2017

Vendekin raised an undisclosed amount / Seed from Kiran Karnawat

Discover more funding rounds

VIEW ALL, Details, Industries, Information Technology, Software

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Headquarters Regions East Coast, Southern US
Founded Date 2015, Founders AROON KHATTE, Operating Status Active, Last Funding Type
Seed, Company Type for Profit, Contact Email [email protected], Phone Number +1 704 438
9191

Vend kin is the integrated technology solution that the vending ecosystem needs! Better consumer
experience, in-depth reporting and data analytics. Vend kin is a 360-degree smart vending solution
that simplifies, optimizes and enhances the vending experience for everyone: consumers,
distributors and brands!

Lists Featuring This Company

East Coast Seed Stage Companies with Less Than $1B in Revenue

East Coast Seed Stage Companies with Less Than $50M in Revenue
Southern US Seed Stage Companies with Less Than $10M in Revenue

Information Technology Seed Stage Companies with Less Than $10M in Revenue
Frequently Asked Questions-Where is Vend kin’s headquarters? Vend kin is located in Dover,
Delaware, United States.
Who invested in Vend kid? - Vend kin has 4 investors including Better Capital and CP Gurbani.

How much funding has Vend kin raised to date? - Vend kin has raised ₹85M.
When was the last funding round for Vend kin? Vend kin closed its last funding round on May 30,
2022 from a Seed round.
Who are Vend kin’s competitors? Alternatives and possible competitors to Vend kin may include
Essensa Solusi Buena. Welcome to Spot-on Enterprises

We at Spoon have complete solution to any kind of Hot & Cold Beverages Machines, Tea Coffee
Machines, Espresso Machines and Consumables required for Home, Office, Cafes, Restaurants,
Hotels, Schools, Hospitals, Colleges, Caterers or for any other use in Navi Mumbai, Thane &
Mumbai. We are into food and beverages industry from last more than 10 to 12 years and have all
domain experts in our team required to perform particular task professionally. We are also
authorized channel partner of Godrej Vending Solutions which have complete range of machines
and consumables required for small, medium to large offices and commercial institutions Our
broad products and services are Tea/Coffee Machines for Home, Office and Commercial Use,
Barista Training, Consultancy, Space Sharing, Coffee Bar in Events, Taking over Beverages Menu
and Repairs of Professional Coffee Machines with complete range of Spare Parts.

Features of all Our Products & Services, Professional Semi-Automatic Coffee Machine & Grande
Professional Semi-Automatic Coffee Machines for Cafes, Restaurants, Hotels, Resorts or Any

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Commercial Food Outlets Used Coffee Machines & Rental Coffee Machines also available subject
to availability Brands - Expo bar, La Pavani, Ideal, BFC, Astoria, Cari Mali, La Cymbal, Mazar,
Nuova Simonelli

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 Research Methodology

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 Research Methodology

Sample size: A sample size of 173 respondents was taken, who had responded the online
questionnaire.

Sampling method: The sapling method was used as convenience sampling method.
Sample area: throughout Greater Noida, NIET college U.P.

Data collection tools: Microsoft excel

In this research we have taken primary method.
Tool for data collection used: one self -designed online questionnaire was created with google
form consisting 14 questions.
. The online survey was conducted by sending the google form on various online platform to obtain
the responses.
. The questionnaire was design in such a way to gather data from the online respondent, which was
helpful in attaining the objective of study.

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 Data Analysis

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 Data Analysis

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 Findings

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 Finding
What vending machine locations to avoid?
Very high or low temperatures, high humidity When choosing the location of the vending
machine, try to avoid places exposed to very high/low temperatures and humidity. Snack vending
machines are rather airtight and are not affected by ambient temperatures, but coffee vending
machines are more exposed to external factors. Moist loose products can clump together, which
significantly reduces the quality of the drink or even makes it impossible to sell.

Location - Greater Noida

Coverage area - Knowledge park II

Owning anywhere from a few to a few hundred vending machines can be a manageable, successful
business for owners of any experience level.

The cost to start a vending machine is basically just the cost of the machines and stocking them—
you won’t need an office space to house them. Additionally, all you have to do is maintain the
machines through repairs, restocking and collecting the money from the transactions.

When starting a vending machine business, the most important acquisition is a few vending
machines. In order to scale up your business and collect the profits legally, and claim business
expenses on your taxes, you’ll have to set up an LLC or corporation.

Step 1: Consider Your Possible Products

Food vending machines are popular and simple, but there are also options for vending machines
that vend items in bulk or vending machines that provide specialty products If you’re starting food
vending machines, you can choose a theme for your machines. Providing healthy snacks in school
could be a good road to go down because schools want to provide students with good nutrition.

In general, you can tailor your offerings to the market space you want to break into.

Step 2: Find the Right Location

Depending on what kinds of machines you have, you can start to find space in commercial
businesses and craft a route. Since it will be you or an employee refilling and repairing the
machines, you’ll probably want them to be not too far away to start. As you expand your business
and bring on more employees, you can start to cover more territory.

Placing vending machines in local businesses means you’ll want to start making connections with
local business owners and talking up your services. If you’re looking for a contract with a school

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district or a business that has several locations, you’ll want to get in touch with a regional manager
or whoever does larger-scale location management projects.

Step 3: Choose the Right Type of Machine for Your Business

There are three types of machines: bulk, electronic and mechanical. Bulk machines hold a single
product in bulk and dispense a certain amount for a quarter or a dollar. You often see this in
restrooms, dispensing sanitary products for example. These can cost $50 to $200 to start.

Mechanical machines are the classic break room vending machines. They provide multiple
products and cost about $2,000 initially. However, they do have higher profits than bulk machines.

Step 4: Find the Right Market

Your vending machine should be in an optimal place for the kinds of customers you want to serve.
For example, vending machines with microwavable foods and other meal-like offerings do well in
places where people are spending a lot of time and don’t have the ability to cook, like offices,
hospitals and universities . Finally, vending machines that dispense medicine or electronics are
great to place in airports, highway rest stops or train stations. These are necessities for travelers
and these machines could therefore have a high profit margin.
Step 5: Stocking Products
For food vending machines, some states mandate a certain percentage of healthy options to be
included. Be sure to have sources for healthy snacks if this is the case for your region When looking
into food stocking in general, you should make connections with wholesale suppliers so you can
get the lowest cost per unit. Saving money on the upfront costs of food will help you get more
profit from your vending machines in the long run.

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 Recommendations

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 Recommendations

Vending machines have been around in India for nearly half a century now. However, the industry
still hasn’t quite taken off when we consider the vast population of India. The lack of retail outlets
for a majority of this population. Although vending machines have now gathered a significant
reputation in the metro cities, their penetration in tier 2 and tier 3 cities is still very low. But these
are regions which hold the maximum potential for installing and scaling a vending machine
business. In this blog, we will analyze why vending machines are not popular in India. Also how
this trend is going to change in the future. How is it going to be more visible among the population.
Vending machines are expensive to manufacture or acquire. Thus, starting a vending machine
business requires a huge capital investment initially. Unfortunately, we live in a society where
these machines are at risk of vandalism due to poor civic sense among people. Thus, seeing a
vending machine which is not working due to broken glass is a common sight in cities. Sometimes,
the vandalisms go a step further and steal the machine altogether. Due to these incidents of theft
and vandalism, the vending machine operators lose out on sales during the time they repair or
replace the vending machine.

For most entrepreneurs, a vending machine is still seen as a cash accepting metal box with no
connection to digital technology. But today’s reality is much different. The futuristic looking smart
vending machines are no longer just limited to Japan. With many players in the IoT based and
cloud managed “smart” vending machines are the next big thing for a successful and profitable
vending machine business.
However, the current players in the vending machine business don’t provide technology solutions
to the vending machine operators. They either provide their own machines on lease to the operators
to start a business under their franchise or give a physical space to the vending machine operator
to install the machines. No player currently provides a technology solution to vending machine
operators. Which these entrepreneurs can incorporate into their machines and create a business
with their own branding. Now with an IoT SaaS provider like Vinify, this is set to change. You
can learn more about such novel technologies in the vending machine business here –
https://www.youtube.com/watch?v=7un_tJX0edQ
In case a vending machine at a specific location malfunction. The IoT solution alerts the operator
immediately, allowing it to diagnose and resolve the issue as quickly as possible. In case someone
tries to break into the vending machine an alarm goes off. Which alerts both the business operator
and the nearby people to prevent theft.

With our technology solution, the vending machine operators can install their machines with their
own branding, use our in-house technology. Save themselves from the hassle involved with
constant software upgrades. Therefore, they don’t need to buy a franchise of another company.
They can operate their business according to their own business plan and goals.

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What’s more? Our end-to-end solution starts at a very low monthly subscription fee. A digitally
smart vending machine increases sales significantly and can even help small retailers expand the
reach of their products. By selling them through an existing vending machine business and
remotely monitoring their own inventory within the machine. This business model can lead to an
increase in installations of vending machines in rural areas. Where the cost of setting up a physical
store may prove prohibitive. The unmet demand of retail purchases for the inhabitants of these
regions will act as an incentive for entrepreneurs. To look beyond the metro cities and tap into tier
2 and tier 3 cities. To know more about how Vinify can help you in this journey, contact our team
at [email protected].
46 the new version of myKad has built in chip to support touch n go feature. It means that everyone
who has a new version of myKad can easily purchase a beverage from the vending machine. In
addition, cash payment like coins and bills are subjected to reliability issues because the cash may
be stuck on the coin discriminator or bill validator. In addition, the accuracy of the sensors in cash
detectors is easily distorted by dust and dirt after certain operating duration. Periodic cleaning on
the sensors has to be carried and it will increase the operation cost of vending business. Therefore,
the convenience cashless payment method using myKad is favorable to be implemented on vending
machine in Malaysia. In addition, the accuracy of the optical touch panel developed in this work
can be further increased by several methods. The first method is to replace the current infrared sensor
with a sensor with shorter rising time so that it able to response faster to user selection and generate
more accurate signal to the vending controller. Another solution to improve the performance of the
optical touch panel is by adding an infrared distance sensor so that the effective sensing region of
the sensors can cover all predefined beverage selection regions with minimum deviation.
Furthermore, the infrared distance sensor can be replaced with other type of distance sensing device
with higher stability and less distortion, such as ultrasonic distance sensor.

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 Managerial Implications of the study

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 Managerial Implications of the study

ORGANIZATIONAL/MANAGERIAL FEASIBILITY
There are various forms of legal structure of organization such as sole proprietorship, partnership,
corporation and cooperatives to organize small business. We evaluate each of these available forms
of legal structure by considering the merit and demerit of each structure. Then we select the one
which is optimal for the establishments of our enterprise. That is called partnership. As definition,
partnership is the association of two or more people to carry as co-owner of business where the
relation is based on agreement. Establishment of our enterprise is due the association of four
persons (our group), where the relationship is based on an agreement. The partner decides to use
the available asset of the enterprise to cover the debt. The following are advantage of partnership
forms of legal structure, which are critical for the enterprise:

 ease of starting

 increased source of capital

 combination of managerial skill

 definite legal status

 motivation of important employees

 reduced risk

By considering all the above advantages we are selecting the partnership form of legal structure
for our business establishment. But this partnership also has demerit such as:

 unlimited liability

 risk of implied authority

 lack of harmony

 lack of continuity (instability)

Even if it has this disadvantage, it is more important for the establishment of our enterprise as
compared to the other legal structure of the business.

Identify any potential joint venture partners, alliances or other important share take holders
At the start of our business, we are not

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wanting to include joint venture partners and important share take holders. This is because:

 They will influence our decision-making process

 Of course, joint ventures have limited scope and time but it needs agreement with the partners
so it is difficult to make agreement with other shareholders and joint ventures

But in the future with the advancement of our business we may open our doers for other business
ventures and share take holders.

Lines of authority and decision making

In current condition all governmental and nongovernmental institution, industry both in
manufacturing and service are obliged to implement new way of governance. What we call it
business reprocess engineering (BPR). This BPR is used to:

 Redundancy in the job is reduced

 Bureaucracy is eliminated

 Supervision by different person

 Good way of decision making

 Shortest lines of reporting

Business founders:
Do the founders have the skills and ability to complete the project?
Since we start the business with grate study and analysis the project can be goes to completion.
and since the founders of this business are clearly understand what role, this business does play to
the society we can devote all what we have to complete the project.

What key individuals will lead the project?

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 All the partners of this business have the ability to lead the project but sometimes one individual
may have greater ability than the others so that individual will be a key to lead the project than the
others.
Is there a reward system for the founders? Is it based on business performance?

The reward for the founders is being the owner of the business and they will get profit in the future
also they can make decisions without the influence of anyone.

Identify availability of skilled and experienced and business managers:

It is quite important to have a more experienced and skilled manager for the success of our
business. This is because manager is the highest decision-making body in the enterprises. Since
our business is new it may be difficult to get a skilled and experienced manager on this vending
machine business but managers who have skills on other businesses can easily manage this
business enterprise. In our country context several individuals are graduated from the universities
in business management. Therefore, availability of business managers is not a difficult thing.

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 Conclusion

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 Conclusion

The easier it is to set up a vending machine business, the more difficult it becomes to operate. In
order to run a successful vending machine business these are the number of challenges that an
operator has to face. These challenges unless are able to overcome, makes it difficult for business
to operate effectively. We can say these Challenges Faced in Vending Machine Business makes it
difficult to run business effectively.

Even with some vending machine stocking with 20%-30% of their machines with healthier options
consumers still must identify and choose healthier option from among the unhealthier alternatives
in order to benefit from these changes. Researchers have also combined price reduction with
promotional signage to enhance sales of healthier items and found that "Reducing relative prices
on low fact snacks was effective in promoting lower fat snack purchases from vending machine in
both adult and adolescent population.

Based on the above feasibility study we conclude that this business does not have any competitors
and the exits alternating are does not the ability to compete with our business because of its
different variety and scope of the business is wide. And also the visibility of this business is
tangible when we see the revenue and total capital of the project. Us we mentioned in the above
this business is initially started using 10 vending machine and 2,181,350 ETB of initial capital in
three selected areas. Then it returned its debt and any other costs in 3.6 years and gives full profit
because of these our sales projection is increasing highly and it goes to 25 vending machine
installation in 9 cities for the next 5 years.
For vendors to make a profitable business.

Vandalism
Vandalism means causing damage to property. It is a most common factor that becomes a
challenge faced in vending machine business. This includes:
Theft
Having a separate security to take care of a machine is an additional cost. Nobody wants to pay
that. But, in India, it is likely to see machines such as ATMs being stolen. It becomes a challenge
for the operator to set up a Vending machine due to fear of theft.
Break In India, there’s a constant fear of machines kept in public. It may be due to protest or even
due to any natural calamity. One is not sure how good a Vending machine business idea is due to
the following factors.

Rising Rent
Percentage of rent keeps on increasing every year. It might be fine to pay the initial rent. With time
rent keeps on increasing. When business sees no profit, paying rent on timely basis becomes
harder. This becomes challenging for the vendor and finally shuts the business. The designed

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vending machine prototype was successfully implemented using FPGA as its main controller. It is
equipped with interactive user interface system that eliminates the uses of push buttons. In
conclusion, the project has achieved all the proposed objectives to improve the overall
performance of the vending machine on terms of cost saving, attractiveness, reliability, and not
easily damaged by vandalism activities.

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 REFERENCE

39 | P a g e
 REFERENCE

The Secret to Starting Your Own Vending Machine Business.

Hart, J. (1983). Purified Water Dispensing Machine. Retrieved August 6, 2010, from
http://www.google.com.ph/patents?id=PnZuAAAAEBAJ&printsec=description&zoom=4#v=on
e page&q&f=false
Ushikibo, K. (1986). Automatic Vending Machine. Retrieved August 5, 2010, from
http://www.google.com.ph/patents?hl=tl&lr=&vid=USPAT4815633&id=3qwrAAAAEBAJ&oi
= fnd&dq=coffee+vending+machine&printsec=abstract#v=onepage&q&f=false

https://www.grandviewresearch.com/industry-analysis/global-vending-machine-market
https://blogs.vendify.in/advantages-disadvantages-of-vending-machine/
https://books.google.com/books?hl=en&lr=&id=q7gvGLIQ9UcC&oi=fnd&pg=PA223&dq=info
:X4j7y7nZBl4J:scholar.google.com/&ots=LuxBdIwFQG&sig=Xjg9Jb9_oUC5kiedmr04luEBays
https://www.sciencedirect.com/science/article/pii/S0033350619303245
https://myaccount.google.com/yourdata/search?pli=1
https://www.online-sciences.com/technology/automatic-vending-machines-advantages-and-
disadvantages/
https://en.m.wikipedia.org/wiki/Vending_machine
. ↑ http://www.investopedia.com/terms/c/capitalstructure.asp
↑ http://www.investopedia.com/terms/l/leverage.asp
↑ http://www.investopedia.com/terms/e/equity.asp
↑ http://www.investopedia.com/terms/d/debtequityratio.asp
↑ http://www.investopedia.com/terms/d/debtequityratio.asp
↑ http://www.accounting4management.com/debt_equity_ratio.htm
↑ http://www.investopedia.com/terms/o/obsf.asp
. ↑ http://www.fool.com/investing/value/2007/06/20/using-the-debt-to-equityratio.asp
↑ http://www.investopedia.com/university/ratios/debt/ratio3.asp
.↑ http://www.fool.com/investing/value/2007/06/20/using-the-debt-to-equityratio.aspx
↑ http://www.accountingformanagement.org/debt-to-equity-ratio/

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↑ http://www.investopedia.com/university/ratios/debt/ratio3.asp
↑ http://accountingexplained.com/financial/ratios/debt-to-equity
↑ http://www.investopedia.com/terms/d/debtequityratio.asp
↑ http://www.investopedia.com/terms/d/debtequityratio.asp
↑ http://www.investopedia.com/terms/d/debtequityratio.asp
↑ http://www.fool.com/investing/value/2007/06/20/using-the-debt-to-equityratio.aspx
↑ http://www.fool.com/investing/value/2007/06/20/using-the-debt-to-equityratio.aspx
↑ http://www.rightline.net/education/buybacks.html
↑ http://www.investopedia.com/terms/i/interestcoverageratio.asp
↑ http://www.investopedia.com/terms/d/dscr.asp
↑ http://www.investopedia.com/articles/basics/04/040804.asp

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 Annexure

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 Annexure

The objective of the questionnaire is to understand the what types of challenges

facing the vending machine business.
So that benchmark can be set for the same for the betterment of the business.
1. Education?
➢ . Graduate ( )
➢ . Post Graduate ( )

2. Gender?

➢ . Female ( )
➢ . Male ( )

3. Are you currently a ?

➢ . Working ( )
➢ . Not working ( )

4. Would you use the vending machine?

➢ . Yes ( )
➢ . No ( )

5 What product would you buy from the vending machine ?

➢ . chocolates ( )
➢ . crisps ( )
➢ . Water ( )

6. where do you think the most appropriate location will be for the vending machine ?
➢ the canteen ( )
➢ library ( )
➢ metro station ( )
➢ railway station ( )

43 | P a g e
7. what will attract you to the vending machine?
➢ design of vending machine ( )
➢ feature of the vending machine ( )

8 .what are the method you prefer to pay for the coffee and some other things ?
➢ paper money ( )
➢ coins ( )

9. Are all sites where food are sold in vending machine required to follow your policy or nutrition
standards (formal or informal)?

➢ . yes ( )
➢ . no ( )

10. what is most important when deciding which food and beverages to provide in vending
machine?

➢ cost of food and beverages ( )

➢ staff preferences ( )
➢ nutritional value ( )
➢ taste of food and beverage ( )

11. which is the coffee machine in your office

➢ instant coffee machine ( )

➢ single serve coffee machine ( )
➢ roast and ground coffee machine ( )

12. Approximately how many times during a semester you utilized the services of a campus snacks
machine?

➢ 1 time ( )
➢ 2-4 times ( )

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 ➢ More than 5 times ( )

13. Snack vending machines are stocked properly:

➢ agree ( )
➢ Disagree ( )

14. Snack vending machines are located conveniently:

➢ agree ( )
➢ Disagree ( )

15. Snack vending machines offer a variety of fresh product selections:

➢ agree ( )
➢ disagree ( )

16. Snack vending machine location and issue?

➢ ----------------------------------
➢ ---------------------------------

17. Comments or suggestions for improvement to snack vending services?

➢ --------------------------
➢ ---------------------------

18.Email address if you want to be contacted:

➢ ----------------------------

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