www.openinnovate.co.uk/bib
Presentation Roadmap -The Problem -The Opportunity -Our Proposal -The Business Model -Our Team -Marketing Analysis -Financials -The Road Ahead
The Problem
On the go drinks and snacks from vending machines usually are: • Expensive and with a fixed price • Unhealthy • Not ecologically friendly (full of packaging)
This has led to the stagnation of the industry
The Opportunity
Customers are: • Looking for healthier snack Changes in alternatives customer • More aware of their wants and environmental impact • Demanding more value for technology, money create new spaces for The technology is cheaper than ever, nevertheless, few innovation innovations have been introduced in vending machines
Our Proposal
Bringing this experience
And these quality snacks...
To the world of vending machines
Designing the ideal vending machine...
To create the ideal vending machine we need to combine creatively: • The principle of current bulk candy vending machines • The “post - mix” drink dispensing mechanism • The “pay per litre” system of petrol pumps
Combination of... + +
Creating in this way a unique value proposition that allows us to: • Sell any juice from concentrate, fizzy drink or granular snack charging per millilitre (or gram) • Stock the machines with products in bulk, avoiding in this way unnecessary packaging, reducing dramatically the costs and optimizing the critical internal space in the machine • Let the customer decide how much s/he wants to pay and consume
Some of these products have never been sold in bulk vending machines (Usually they just stock sweets and spherical bubble gums because of their simplicity)
We allow nuts and dried fruits to be cheaper and more convenient than ever...
But also sexier...
Upgrading their perceived value and consumer awareness
And this also applies for drinks in “bulk” ***Note that these are regular post-mix machines, not automated coin vending machines, our proposal is similar in format but different in functionality***
Some of the most important features of the machine are: For drinks: There will be a selection of 3 Cup sizes with a cap and straw. A reusable optional plastic mug will be on sale. The customer will be able to use their own mug if wanted. There is a sensor to avoid overfilling of the container.
Some of the most important features of the machine are: For drinks (cont): Internally the machine holds one big body of refrigerated water (and the juice and/or soda concentrates). This allows us to stock hundreds of litres at once, making it extremely cost efficient compared with cans or bottles.
Some of the most important features of the machine are: For granular snacks: A paper bag will be supplied by the machine, the customer can choose and mix a selection of dried fruits, nuts and other healthy snacks. To maintain freshness the machine has a regulated internal atmosphere
Key Differentiation and Advantages
Spare change? What makes us unique is that our customers can buy with any amount of cash that they choose. For example, if £1.00 buys 100 grams £1.10 can buy 110 grams and £0.90 can buy 90 grams
Why is this so important? For the customer: I t is more convenient. S/he can always buy something starting from as low as 35p. If the customer has spare change, they can spend it and get a little more, making good use of the often useless low denomination coins (1p, 5p, 10p...)
Why is this so important? For our business: This can increase substantially the revenues in 2 ways: -We are able to sell to more people because they can buy less grams/millilitres if they don’t have enough cash -People with additional spare change can spend it to get more of a product. In economic terms this means that we can extract more value under the demand curve.
Eco-Friendly • We only use recyclable packaging and as little as possible. • Our transport costs are substantially lower; each machine requires less restocking and there is no wasted space between the products. • We are energy efficient, it is easier to keep the machines cold and insulated
Business Model
Business Model Intellectual Property Licences $ (Licences) Self operated machines Design and $ (products) prototype of the machine Third party operated Production of machines the machines (With their own brands) $ (Licences) Brand Franchise $ (Commission and licences)
The Action Plan
• Fund the company in Chile and the UK • Apply to the Chilean innovation subsidy (£50,000) Critical • Start the design, R&D and milestones to develop the prototypes in Chile implement • Start the pilots of the machine the project in Chile and the UK (total 50 machines) • Licence the technology to non competitive partners (like Coca- Cola and snacks firms)
Our Team 33
Chief Executive Officer MSc in Innovation and Technology Management Work Experience as Trade Manager, Project Manager, Consultant and Part time Lecturer Founder partner of Rnovo Experienced in public and private innovation projects. From funding Pedro Parraguez to execution.
Chief Financial Officer Serial Entrepreneur and partner of HarneckerCarey MBA & Licentiate in Economics and Management Sciences Senior Consultant Allan Jarry
Chief Engineering Officer Senior Intellectual Property and Technology Transfer Specialist MBA & Mechanical Engineer Innovation Consultant Jorge Fuentes
Shareholders and Start-up Organization
Marketing Analysis
The global vending market Retailing US$11,171 bn Non-store: Non-store: Store-based: Store-based: Non-store: Non-store: Internet Direct grocery non-grocery vending homeshopping retailing selling US$4,707 bn US$5,809 bn US$66 bn US$219 bn US$253 bn US$118 bn Personal Packaged Tobacco Packaged Unpackaged Other hygiene drinks products foods drinks products products vending vending vending vending vending Vending US$32 bn US$19 bn US$6 bn US$5 bn US$3 bn US$1 bn Source: EUROMONITOR 2009 Global Retailing, Vending - The Future of Automated Retail
SWOT – Global Vending Socio-demographic Markets Competitive environment Technology Taps into demand for Penetration of Negative consumer Security and payment convenience developed markets perceptions constraints Developed markets offer a Products sold via vending Fast-paced lifestyles in both Security concerns limit sites, developed and emerging range of suitable vending perceived as unhealthy, payment issues such as locations such as stations, markets is resulting in low quality, over-priced – unsuitable coin denominations airports, shopping malls or a combination of all can hinder sales (India) and lack growing demand for ‘on - and leisure centres the- go’ products, which three of electronic payment options vending is ideally restricts higher unit price positioned to cater to vending Strengths Weaknesses Opportunities Threats Markets Competitive environment Legislative Product development Growing fastest in Better products, wider Other convenience Smoking bans, emerging markets variety retail channels environmental laws Strong growth in emerging New/better products and Demand from busy consumers Smoking bans will continue powerhouse economies, more payment options (e.g. spurs growth of other to impact tobacco vending: particularly Russia and China. electronic cards) enables a convenience retail - environmental/recycling Improving facilities and greater variety of products convenience stores, laws will also create new and higher price points. infrastructure offer a foodservice outlets, longer costs and challenges for growing number of sites Better technology improves opening hours – all competing vending operators suitable for vending product storage and delivery with vending for sales machines Source: EUROMONITOR 2009 Global Retailing, Vending - The Future of Automated Retail
Global Vending – a US$66 Billion Market Vending accounted for 0.6% of the US$11 trillion global retail market in 2008 The global vending market experienced solid growth in the early part of the 2003- 2008 period, but decline in the important tobacco products category meant that by 2008 global value sales had returned to 2003 levels Global sales are expected to continue falling to 2013. Global Vending Market Value 2003-2113 US$bn, Fixed 2008 Exchange Rates 70 60 50 40 66.2 66.2 62.6 30 20 10 0 2003 2008 2013 Source: EUROMONITOR 2009 Global Retailing, Vending - The Future of Automated Retail
Traditional Vending Products Lead Category Sales Bubble size shows product sector share of market, range displayed: 1.3 - 48.8% Source: EUROMONITOR 2009 Global Retailing, Vending - The Future of Automated Retail
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